Stored Value Cards - LECOLO.COM

1 Stored Value Cards This document details the use and configuration of Stored Value Cards in CounterPoint. 10/16/2008 Stored Value Cards 2 Table of Contents Introduction .. 3 Overview .. 3 Obtaining Stored Value Cards .. 4 SVC transactions .. 4 SVC transaction fees .. 5 SVC Item type options .. 6 SVC pay code .. 6 Setting up Stored Value 7 Step 1 Sign up to process 7 Comdata Stored Value Solutions .. 7 First Data Gift Cards .. 7 Paymentech (FlexCache) .. 8 RBS Lynk (GiftLynk) .. 8 Step 2 Configure credit card processing .. 8 Step 3 Open the necessary 8 Step 4 Enable Stored Value Cards .. 9 Step 5 Create an SVC pay code .. 11 Step 6 Configure draft capture .. 12 Comdata Stored Value Solutions .. 12 First Data Gift Cards .. 13 Paymentech (FlexCache) .. 14 RBS Lynk (GiftLynk) .. 15 Step 7 Define SVC items .. 16 SVC 16 SVC Recharge .. 17 SVC Bal 17 SVC Cash back.

2 17 Processing Stored Value Cards .. 18 Activating a Stored Value card .. 18 Redeeming a Stored Value card .. 19 Recharging a Stored Value card .. 21 Issuing cash back for a Stored Value 22 23 SVC not allowed .. 23 Stored Value Cards 3 Introduction Overview A Stored Value card (SVC) is a numbered card that represents a specific dollar Value and can be redeemed at a merchant s store. SVCs typically include a magnetic stripe encoded with a unique identifying number, allowing them to be processed with a standard magnetic stripe reader (MSR) device. The Value of each SVC is Stored in a central database hosted by a third party. Because SVCs are processed by a third party, accurate and up-to-date SVC information is always available from any merchant site, including Multi-Site Remotes or LAN/WAN workstations using CounterPoint s Offline Ticket Entry Option. This feature is particularly valuable for multi-store merchants using polling or a low-availability WAN connection, as it guarantees that an individual card cannot be redeemed multiple times at different stores.

3 Merchants can use SVCs as gift certificates, store credits, and promotional items, or they can simply offer them to customers as an additional service and payment option. SVCs can also provide a single currency that can be accepted by related merchants. For example, a group of franchise stores with independent CounterPoint systems could use SVCs to issue and redeem as single store gift card that is valid at any franchise store. CounterPoint allows you to sell and redeem Stored Value Cards through regular Ticket Entry. You can also recharge or add Value to an SVC, process merchandise returns to add Value to an existing SVC, view the current balance of an SVC, and issue cash back to clear an SVC s remaining balance. NOTE: Stored Value Cards are only supported in regular Ticket Entry. You cannot process Stored Value Cards in Touchscreen Ticket Entry or Order Entry. CounterPoint is compatible with Stored Value Cards from Comdata Stored Value Solutions (formerly Stored Value Systems), PNC Merchant Services/First Data, Paymentech ( , FlexCache), and RBS Lynk ( , GiftLynk).

4 Comdata Stored Value Solutions, First Data, Paymentech, and RBS Lynk maintain connections to the CPGateway servers ( ), allowing SVCs to be processed over the Internet in the same manner as credit Cards . Therefore, any merchant processing credit Cards under the CounterPoint Merchant Program (CMP) or with a Preferred Processor ( , First Data North, First Data South, TSYS, Paymentech, or RBS Lynk) can also process SVCs with a supported SVC processor. NOTE: Comdata Stored Value Solutions also offers merchants direct modem connections to support dial-up processing of Stored Value Cards . First Data, Paymentech, and RBS Lynk do not support dial-up SVC processing. Stored Value Cards 4 Obtaining Stored Value Cards You can obtain pre-numbered Stored Value Cards in pre-set and variable denominations from any of CounterPoint s supported SVC processors. Stored Value Cards can also be pre-printed with a logo or other image, to associate the Cards with a particular merchant.

5 All Stored Value Cards remain inactive until you activate them in CounterPoint. The current Value of each activated Stored Value card is maintained by your SVC processor. You can retrieve or update a Stored Value card s current balance by SVC transactions processed Ticket Entry. SVC transactions Each SVC-related activity that you can perform in CounterPoint corresponds to an associated SVC transaction. CounterPoint supports the following SVC transactions: y Activation Activates a new Stored Value card . You can activate a Stored Value card in a pre-set denomination or in a denomination determined at the time of sale, up to the maximum amount defined in Setup / Point of Sale / Control. An activation transaction occurs when you sell an SVC Activate item in Ticket Entry. y Recharge Adds Value to, or reloads, a Stored Value card . As with activations, you can recharge a pre-set amount or a variable amount, up to the maximum amount defined in Setup / Point of Sale / Control.

6 A recharge transaction occurs when you sell an SVC Recharge item in Ticket Entry. y Cash back Clears the remaining balance on a Stored Value card and allows you to issue cash back for the cleared balance, up to the maximum amount defined in Setup / Point of Sale / Control. A cash back transaction occurs when you add an SVC Cash back item to a line in Ticket Entry. y Balance inquiry Obtains and displays the current balance for a Stored Value card . A balance inquiry transaction occurs when you add an SVC Bal inquiry item to a line in Ticket Entry. A balance inquiry also precedes each cash back transaction. y Redemption Reduces the balance of a Stored Value card . A redemption transaction occurs when an active SVC with a current balance is tendered for a sale in Ticket Entry ( , a positive amount due). y Return Increases the balance of a Stored Value card . A return transaction occurs when an active SVC is tendered for a merchandise return in Ticket Entry ( , a negative amount due).

7 Each of these transactions requires an SVC number, which you can enter using an MSR device or manually. Once the card number is provided (and the corresponding PIN, depending on your configuration), CounterPoint contacts the SVC processor, obtains the necessary authorization, and retrieves or updates the SVC balance. Each of these transactions, except for balance inquiry transactions, can be canceled and the corresponding SVC card adjustment reversed within Ticket Entry. For example, deleting an SVC Recharge item from a ticket deducts the recharged amount from the SVC, while canceling an SVC pay code restores the tendered amount to the SVC. When an SVC transaction is canceled, CounterPoint connects to the SVC processor and updates the SVC balance appropriately. NOTE: All SVC transactions are processed immediately after the SVC number is entered in Ticket Entry. Stored Value Cards 5 SVC transaction fees Each SVC transaction including balance inquiries, cash back transactions, returns, and so forth carries a fee that is charged whenever the processor is contacted and the transaction completed.

8 Because SVC transactions are processed as soon as you provide the card number in Ticket Entry, the fee is charged regardless of whether you complete the ticket. If you cancel an SVC transaction, either by voiding the current ticket or by deleting the corresponding line item or payment, another transaction is processed and another fee is charged. For example, if you add an SVC Activate item to a ticket line to activate a new Stored Value card , the activation is processed immediately after you supply the card number (and PIN, if necessary), which generates the associated fee. If you subsequently void the ticket or delete the line item, a second transaction is processed, which generates another fee. Similarly, when you redeem a Stored Value card , a transaction is completed and the relevant fee is charged. If you void the ticket or return to the line item area of the ticket, a second transaction is processed to void the payment and reverse the SVC card adjustment, which results in another fee.

9 Each SVC transaction processed over CPGateway also carries a CPGateway fee. NOTE: For CMP merchants, CPGateway fees are not charged for First Data Gift card transactions. However, CPGateway fees do apply to First Data Gift card transactions for non-CMP merchants. Stored Value Cards 6 SVC Item type options Most SVC transactions including activation, recharge, cash back, and balance inquiry transactions require you to add a specific type of item to a line in Ticket Entry, and then enter an SVC number to complete the transaction. Inventory / Items allows you to define items of the appropriate Item type for each of these transactions. The following Item type options are available for SVC transactions: y An SVC Activate item allows you to sell pre-set or variable-denomination Stored Value Cards . y An SVC Recharge item allows you to recharge, or reload, Stored Value Cards . y An SVC Bal inquiry item allows you to obtain a Stored Value card s current balance.

10 Y An SVC Cash item back allows you to clear a Stored Value card s remaining balance and issue cash for that amount. Refer to Step 7 Define SVC items on page 16 for information about setting up each SVC Item type. SVC pay code In order for your store(s) to accept Stored Value Cards as tender, you must define an SVC pay code, using Setup / Point of Sale / Stores / Stores and Setup / Point of Sale / Stores / Draft capture. The SVC pay code allows you to process redemption and return transactions for SVCs in Ticket Entry, decreasing or increasing the card balance by the tendered amount. Refer to Step 5 Create an SVC pay code on page 11 and Step 6 Configure draft capture on page 12 for information about setting up SVC pay codes for your stores. Stored Value Cards 7 Setting up Stored Value Cards Before you can issue and redeem Stored Value Cards , you must set up your CounterPoint system to use SVCs and create the necessary pay code and SVC items.