Gift card processing is a necessity for any company that sells pre-loaded cards online. In addition, it can be used by standard businesses who want to offer gift cards as a purchasing option for their customers. In any case, both require specialty tools and unique merchants that cater to the specific requirements gift cards have relative to their payment processing capabilities.
If you are looking for payment processing services for companies that exclusively sell gift cards, then you’re in the market for a high risk merchant account. The industry of gift card sales has a reputation for having high rates of fraud due to common scams and easy money exchanges that occur on the transaction side.
Nonetheless, reputable gift card services have seen great success buying unwanted cards and selling them at higher prices. This has opened up great opportunities for businesses to capitalize as purchasers and sellers. As such, companies like Zen Payments offer merchant accounts that take into consideration this two way street of arbitrage and growth.
If you have an existing store and want to offer gift cards, then you’ll need to set up your merchant account with a special processing tool. The technology you need is custom-designed to link to your merchant account and make transactions with the cards you create.
To elaborate, gift cards are a unique item when it comes to the customer purchasing experience. They first purchase a code (or physical card), then pay with that information later. This is technically another form of payment that your account needs to recognize.
Offering gift cards to customers can be an excellent way to grow sales and gain significant brand awareness. If you’re looking for a quick and effective way to bring in more funds while marketing to new and existing customers, then review the below reasons on why we agree that gift cards are the way to go.
There are a few steps that take place when a company decides to offer gift cards to its customers. Below, we’ll discuss how it works from a transaction level:
