Understanding vouchers

Vouchers are items such as gift cards or gift certificates.

Vouchers are known as stored value items. This is because a specific dollar amount is prepaid by the customer when they purchase the voucher. This dollar value is then stored on (or assigned to) the voucher. The customer, or the person who receives the voucher as a gift, can then use the voucher to purchase items at a future date.

Some types of vouchers (i.e., digital gift cards, gift certificates) can only be prepaid and used once. Other types of vouchers (e.g., physical gift cards) can be reloaded and used repeatedly.

Types of vouchers (general)

In general, retail stores will typically sell three types of vouchers:

  • Closed-loop: These types of vouchers are sometimes called store gift cards. They can only be used to purchase items from one store or one retail chain. Closed-loop vouchers are the most common type of voucher used by retailers.

  • Open-loop: These types of vouchers can be used to purchase items at any store that accepts the voucher as a form of payment, e.g., prepaid Visa, Mastercard, American Express, or Discover cards.

  • Hybrid: These types of vouchers can be used to purchase items at stores who have agreed to accept the voucher as a form of payment, but cannot be used at other stores.

Open-loop and hybrid vouchers are produced by third parties and are sold in stores alongside other standard inventory items. A payment integration is required to activate these types of cards and for customers to use them to purchase items in the store. Vouchers that are created using RMH are closed-loop vouchers.

Types of vouchers (RMH)

In single-store RMH implementations, vouchers that are created using RMH are called local vouchers, and they can only be used to purchase items at the same store where the voucher was created. In multi-store RMH implementations, vouchers that are created using RMH are called global vouchers, and can be used to purchase items at any store managed by Central Manager.

Voucher expiry dates

Vouchers may or may not have expiry dates. Before you establish expiry dates for vouchers, check the laws governing voucher expiration in the jurisdiction where the store operates. In some jurisdictions, it is against the law to set expiry dates for vouchers. In other jurisdictions, there may be legal requirements for establishing expiration dates and for managing expired vouchers. The best practice - and the most consumer friendly option - is to have no expiration date for vouchers.

Voucher depreciation

Stores may have (or may want to establish) policies regarding the depreciation of stored values on vouchers over time. For example, a store might have a policy to deduct $10.00 from the stored value of vouchers that have not been used a year after the purchase date, and so on. Before you establish a policy for depreciating the stored value of unused vouchers, check the laws governing voucher depreciation in the jurisdiction where the store operates. If the store operates in multiple jurisdictions, the best practice is to align the store's policies on voucher depreciation with the jurisdiction with the most consumer friendly regulations.

Voucher numbers and serial numbers

Vouchers must always be assigned either a voucher number or a serial number. The voucher number or serial number must be unique, since it is used to track the stored value of the specific voucher.

If the store sells vouchers that have preprinted voucher numbers or serial numbers, you can enter the numbers on the Serial tab in the Item screen when you receive the vouchers into inventory, but this can be time-consuming and delay restocking. A better approach is to require cashiers or salespeople to enter the voucher numbers or serial numbers in POS when they sell vouchers to customers.

The Allow POS serial number creation and Require serial number at POS options in store rules control whether cashiers or salespeople are allowed to enter voucher numbers or serial numbers in POS, and whether they are required to enter or select those numbers in POS when vouchers are sold.

While voucher numbers are not the same as serial numbers, they are treated in a similar way in RMH. For example, if you use RMH to create vouchers, you can configure RMH to automatically generate voucher numbers based on a format that you specify. These voucher numbers are generated when the vouchers are sold in POS, and the voucher numbers are stored on the Serial tab in the Item screen.

Tip: If the store is centrally managed using Central Manager, a good practice is to set up the voucher numbering format in each store to identify the store, e.g., ST014-###### would generate voucher numbers such as ST014-000001, ST014-000002, etc. for Store 14, while ST016-###### would generate voucher numbers such as ST016-000001, ST016-000002, etc. for Store 16. This makes it easier to identify which store sold the voucher.

If you are not entering voucher numbers or serial numbers from preprinted cards, or automatically generating voucher numbers in RMH, you will need to automatically generate serial numbers in RMH. This is because vouchers must be assigned either a voucher number or a serial number to track the stored value on the voucher. You can set the starting number for automatically generated serial numbers, e.g., 1000, but you cannot specify a format like you can with voucher numbers.

Refunds of prepaid vouchers

It is a best practice to not allow returns (refunds) of prepaid vouchers to reduce risk from fraud. However, you should check the laws governing refunds of prepaid vouchers in the jurisdiction where the store operates. Some jurisdictions have laws that allow or require refunds of prepaid vouchers.

Vouchers and return policies

Some stores integrate vouchers into their return policies. For example, if a customer wants to return an item outside of the normal return period, the store may have a policy that authorizes floor managers or customer service representatives to refund all or part of the dollar value of the item to a voucher. This is usually a better option than refusing to accept the return, and has the advantage of keeping future sales revenue in the store.

Vouchers and e-commerce

Stores are increasingly integrating vouchers into e-commerce sites and apps, allowing customers to purchase, share, and redeem vouchers for online or app-based purchases.

Vouchers and reporting

Sales of prepaid vouchers are included in the Z Report. This is because monies collected from the sales of vouchers in POS must be reconciled for each batch. Vouchers are listed as a separate line item from other item sales.

However, sales of prepaid vouchers are excluded from the sales reports found under Reports | Active Reports in RMH, e.g., Detailed Sales Report. This is because the monies collected through voucher sales are initially recorded as liabilities in the store's accounting system. It is only when customers use vouchers to purchase hard goods or services in the store that those monies are recorded as sales. Stores should consult an accounting professional for guidance regarding how vouchers and voucher balances should be managed and reported.

Vouchers and loyalty programs

If the store uses RMH Loyalty Manager - or another loyalty program - it is a best practice to exclude sales of prepaid vouchers from point collection schedules or point collection incentives. Customers should be limited to collecting points on the hard goods or services that they purchase in the store. This is when the monies from the voucher are converted to sales in the store's accounting system, and when it is appropriate to reward the customer's purchase with loyalty points.