Gift cards have gained great popularity in the incentive industry in the last 10 years or so for a number of reasons, not the least of which the simplicity of setting up and managing one. For all that, this is part of the financial industry, and there are regulations and intricacies that should be understood by a program manager. And like many parts of the financial industry, gift cards uses terminology that can be quite opaque at times -- for instance breakage, interchange, and closed loop, among others.
Gift card provider InteliSpend, which specializes in creating gift cards customized for incentive programs by directing where they can be used, last week offered up a glossary of industry terms that can helpful to incentive planners who are looking to make their gift card purchasing and management a little more sophisticated than sending someone down to the pharmacy to pick some up off the rack.
It's worth a look