Terminology

Distribution Channels

1st Party eCommerce

The First-Party channel is when the brand sells its gift card to a consumer directly on their website or through a TOTUS vendor or TOTUS directly. In most cases, TOTUS or its contracted vendor does the fulfillment for First-Party Distribution. This could be to consumers or B2B.

1st Party Retail

A brand's physical location is where a person will purchase a gift card. An example is a gas station owned by an Oil Company. A card is not considered ‘purchased/activated’ until either a consumer or business pays for the card. A unique card type is typically compatible with the brand’s POS systems. This could be consumers or B2B.

3rd Party Consumer eCommerce

The cards are sold online to consumers through TOTUS partners.

3rd Party B2B eCommerce

The cards are sold online or by phone to businesses through TOTUS partners. They will usually buy the gift cards in bulk for a discount. The discount is supplied by the Brand or TOTUS to the TOTUS Partner. This channel usually means selling directly to the business. For example, the “B2B” business is purchasing cards that they are going to distribute to their employees or customers. Other types of businesses may also purchase cards which can also be distributed through other channels.

3rd Party Retail

Third-Party is a TOTUS distribution channel authorized to sell a gift card for a brand either to a consumer or business. A card is not considered ‘purchased/activated’ until either a consumer or business actually pays money for the card. A supermarket like Kroger (instance of a Third-Party Retail site).

Form Factors

Digital

The card number and PIN are only available over the internet in a virtual form. The virtual form may be the card number and PIN in an email or may be presented on a web page that is gated by some authentication which then shows the card number and PIN. The card number may be presented as a barcode for easy automated reading on redemption.

Physical

A physical piece of plastic that contains the card number and optionally a PIN.

Inserts

A physical piece of paper that is included in the envelope or package with the gift cards. It may contain the list of gift cards for tracking purposes, marketing messaging or other disclaimers like terms and conditions for the gift card.

Tri-fold Letter

A physical piece of paper that the gift card is affixed. It will show marketing messages and other messaging to explain how to use the card.

Fulfillment

Physical Fulfillment

The process of sending out physical plastic cards to retail, consumer, business or other physical locations that may also be used as a staging area for retail fulfillment.

Processing

Void

The process of taking all of the money off the card and changing the status of the card so it can no longer be issued.

Reissue

Take the money off the original card and place it on a new card.

Redemption

Take the money off the card in exchange for a product or service for the brand. This also results in a settlement event with the brand.

Refund

Take money off the card and give to the consumer.

Close

Change the status of the card so it can no longer be used.

Activation

Change the card's status to allow it to be redeemed and load the money on the card.

Fraud

Set the status of the card so that it cannot be used.

MRC (Merchandise Return Credit)

If a consumer returns merchandise to the brand, the brand may choose to issue a gift card as a refund for that returned merchandise. The brand will use an MRC as mitigation against fraudsters. The fraudster would prefer to get cash, but by getting a gift card, they must use the refunded money in the store. The fraudster may also try to sell this gift card on the secondary market for cash.

Legal

POD

A legal entity that is issuing the gift card. The POD is responsible for all legal and compliance related to issuing the gift card. The legal entity is separate from the brand.

Escheatment

Once a gift card is considered ‘abandoned’ by a jurisdiction in the United States, then the POD is responsible for liquidating and voiding the card and sending the money to the jurisdiction.