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How to manage gift card cashout requests

July 29 2019
Several states require gift card issuers to allow consumers to request cash when gift cards have limited values remaining. Typically, cards are brought to retail locations and the cashier provides the remaining balance directly from the register. To support retailers, YA has developed a solution that allows consumers to receive cash for their gift cards without disrupting retail operations.
 

Why does this matter to retailers?

  • Processing cashout requests disrupts store operations and slows service
  • Distributing cashouts via cash registers and POS systems can lead to fraud and cashier errors
  • Criminal organizations have begun targeting retail locations with bogus cashout requests.

Which states does this matter in?

Minimum Balance States
  $10 California
  $5 Colorado, Maine, Massachusetts, Montana, New Jersey, Oregon, Puerto Rico, and Washington
  $3 Connecticut
  $2.50 Texas
  $1 Rhode Island

 

 

 

 

 

What we have seen?

YA has been approached by several brands looking to leverage our experience delivering rewards to consumers to help prevent the issues associated with gift card cashouts. . In response, YA developed a solution that includes a consumer website and takes the cashout process out of the retail environment. Additionally, we process the cashout with the gift card processor using the retailer’s rules for the program. The remaining balance is then delivered to consumers via check.

To support consumers, YA’s customer service team handles customer inquiries across communication channels.

Finally and most importantly, YA provides reporting and insights that show where and how cashout requests are being made. This allows retailers to improve operations and solve small issues before they become material.

Kevin Palmstein is a Vice President of Product, Alliances and Marketing at YA. He works with clients everyday to design custom rewards programs

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