Loyalty Card
Technology

Plastic loyalty cards are a staple in today's retail environment. Beyond simply providing a thoughtful way to gift money for consumers, they serve as an effective strategy for businesses to boost sales, foster loyalty, and enhance brand recognition. But what makes these small plastic cards tick? Let's explore loyalty card technology and find out how they work. 

Frequently Asked Questions
technology for gift cards

Card Technology

From traditional magstripes to state-of-the-art EMV chips and NFC capabilities, modern gift cards ensure that the shopping experience has never been easier or more secure.

magstripe

Magstripe

A magnetic stripe, often called a Magstripe, consists of minuscule iron-based magnetic particles set within a plastic-like film. These particles can be oriented towards either the north or south pole, enabling them to represent binary code for a magstripe reader to interpret. When the card passes through a reader, the device deciphers the binary information to confirm the card's details and balance. While Magstripe technology is affordable and commonly used today, smart chips are gradually gaining more traction.

smart chip card

Smart Chips

Smart chips consist of tiny microprocessors integrated into the card. This embedded metal chip not only securely holds data but also carries out cryptographic functions. Instead of swiping the card, users insert or "dip" it into a reader. Every transaction produces a distinct code, enhancing security significantly compared to the magstripe. Predominantly found in credit and debit cards for heightened security, some gift cards have also begun to adopt this technology.
Barcode

Barcode

Many Loyalty cards feature printed barcodes or QR codes. These patterns, whether linear or matrix-based, can be interpreted by scanners or smartphones to convey information. Upon scanning, the system instantly provides the card's balance and associated details. Though this method is simpler and lacks the security of magstripes or smart chips, it remains prevalent, especially among smaller retailers or for promotional purposes, due to its ease of use and affordability.

Frequently Asked Questions

Here you can find the most commonly asked questions about loyalty card technolgy and the answers to them

gift card faq

A magnetic stripe is a strip of magnetic material on a card's reverse side, holding the card's data. When the card is swiped, a reader interprets this data. Conversely, a smart chip, contains a tiny microprocessor within the card. This chip securely retains information and necessitates the card to be inserted or "dipped" into a reader, generating a distinct code for every transaction. Compared to magstripes, Smart chips provide superior security, making them tougher to duplicate and more resilient to fraudulent activities.

Generally, QR codes and barcodes on gift cards serve mainly for swift scanning and don't possess the robust security features of magstripes or EMV chips. Although they can promptly convey details like the card's balance, they miss out on the encryption and distinct transaction capabilities present in advanced technologies. However, many gift cards with QR codes or barcodes incorporate extra security measures, such as PINs or CVVs, to boost security when they're redeemed.

Every card reader isn't designed to support NFC (Near Field Communication) or RFID (Radio-Frequency Identification) transactions. For the tap-and-go feature of a gift card to work, the retailer's card reader needs to be compatible with NFC or RFID. But with the growing trend of contactless payments, an increasing number of retailers are updating their equipment to embrace this tech. If uncertain, it's best to consult the merchant or spot the contactless icon on their card reader.

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