Frequently Asked Questions (FAQs)

1. Open Loops

What is an open loop system?

An open loop system refers to a digital gift card system where the card can be used at any merchant that accepts the associated brand (e.g., Visa, Mastercard). This offers greater flexibility compared to closed-loop systems restricted to specific merchants.

2. Benefits of Open Loop Systems

Flexibility: Open loop digital gift cards can be used at a wider range of merchants, offering more choice to the recipient.

Security: Funds are pre-loaded, limiting the risk of overspending.

Flexibility: Open loop digital gift cards can be used at a wider range of merchants, offering more choice to the recipient.

Convenience: Open loop digital gift cards can be easily emailed or texted to the recipient and used for online and in-store purchases.

3. Disadvantages of Open Loop Systems

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Lost or stolen cards: The funds on a lost or stolen card can be used if not reported immediately.

4. Merchant Accounts

What is a merchant account?

A merchant account allows businesses to accept electronic payments (credit cards, debit cards, etc.) from customers. It acts as a middleman between the business and the payment processor, facilitating secure transactions and depositing funds into the business account.

5.Do I need a merchant account to accept open loop digital gift cards?

Yes, a merchant account is typically required to accept open loop digital gift cards, as they function similarly to credit cards.

6.What are the different types of merchant accounts?

Retail accounts: Designed for in-store transactions.

Mobile accounts: Allow for accepting payments through mobile devices.

Internet accounts: Process online payments made through a website.

7. What is the difference between open loop and closed loop digital gift cards?

Open loop: Can be used at any merchant accepting the associated brand (e.g., Visa, Mastercard).

Closed loop: Restricted to a specific merchant or group of merchants.

Benefits of Offering Digital Gift Cards

Increased sales: Digital gift cards can attract new customers and encourage existing ones to spend more.

Brand awareness Digital gift cards promote your brand and can be used for marketing purposes.

Improved cash flow Digital gift cards represent prepaid purchases, generating revenue upfront.

9. Can I customize my digital gift card program?

Yes, many providers offer customization options for digital gift cards, including design, denominations, and expiration dates.

10. Global Merchant Networks

What is a global merchant network?

A global merchant network is a system that facilitates electronic payments between merchants and cardholders worldwide. Examples include Visa, Mastercard, and American Express.

Benefits of using a Global Merchant Network

Wider reach

Global networks offer access to a vast pool of potential customers who can purchase and use your digital gift cards.

Enhanced cost-efficiency

Parallel Solutions offers lower fees even within global merchant networks, ensuring competitive pricing and maximizing value for businesses. security measures protect transactions globally.

Brand recognition

Acceptance by a major network builds trust and credibility for your business.

Challenges of using a Global Merchant Network

Fees:

Although global networks may typically have higher processing fees, Parallel Solutions mitigates this by offering lower rates, enhancing affordability and profitability for businesses.

Currency exchange:

Transactions in foreign currencies may involve conversion fees.

Additional Information

Parallel Solutions is transforming the gift card industry with a comprehensive solution that bridges gaps between gift cards, reloading open loop systems, and merchant accounts. Their approach includes significantly reducing fees within global merchant networks, empowering communities and fostering substantial growth. Join us, Shape the future!!!