Benefits of Prepaid Cards for Retailers

Prepaid Cards are transforming the retail environment. Retailers can offer their customers branded open-loop or closed-loop Prepaid Card solutions.

• Closed-loop card programmes restrict the cardholder spend to a specific store, or group of stores. See Gift Cards for more information.
• Open-loop Prepaid Cards allows funds to be used at POS within the traditional retail environment wherever the MasterCard® or Visa brand is accepted, online or to access cash from ATMs. See Prepaid Cards for more information.

Closed-loop card programmes restrict the cardholder spend to a specific store, or group of stores. Open-loop Prepaid Cards allows funds to be used at POS within the traditional retail environment wherever the MasterCard® or Visa brand is accepted, online or to access cash from ATMs.

Paper gift vouchers require cash to be given back to consumers if the full value of the voucher is not used in the initial purchase. An M2 Europe Prepaid Gift Card solution enables the merchant to keep the cash by debiting the value of the transaction from the balance of the card. The remaining balance is stored on the card for your customer's next visit, while the balance of the funds is held in a settlement account. Paper vouchers systems are also often complicated and the inventory is very difficult to manage.

Customers benefit with greater choice, convenience, and security. As Prepaid Cards do not require cardholders to have bank accounts or to be credit-worthy, they are not required to pass credit checks. M2 Europe's Prepaid Cards offer all the convenience of a credit card but without tempting your customers to overspend and get into debt.

Around 22% of the value spent on prepaid cards in the UK is expected to come from prepaid gift cards by 2010. (Source PSE Consulting)

Retailers can implement loyalty and reward programmes that increase customer retention, drive repeat purchases and create awareness of new products and services.

Further Benefits

• Revenue opportunity through issuance of a universally accepted card programme. Transaction revenue is earned at a number of transaction points
• Reduced pay-out costs including international transactions, by loading funds by batch load onto the card directly
• Superior speed of payout when replacing cheques and BACS etc. as the money is back in the client account instantly for re-use
• Unique competitive advantage the card can be disabled for any competing stores if required. Also promotions can be switched on and off helping drive transaction volume, where you want, when you want
• Improvements to client acquisition, retention and wallet share - the products can capture previously unattainable clients from the youth, transient and un-banked communities retention is assisted by providing greater convenience and "pay-out" speed particularly useful in highly competitive sectors
• Lower cost of deposited funds card is routed directly through M2 Europe
• Provides a risk free, low cost entry to the Financial Services market due to removal of credit processes and minimal initial set-up costs
• A card programme allows clients to have access to card activity data, and when used as part of a Customer Relationship Management campaign creates increased up-selling/cross-selling opportunities.