General Problem
How do retail establishments constrain activation for gift cards, or those pre-paid phone/debit cards?
They must have a system in place that only keeps you from calling in to activate cards that haven’t scanned through the register, and I assume there must be a standard solution built into the retail ERP/accounting systems. It probably involves web services or EDI.
Specific Problem
I ask all this because one of my clients wants me to develop a product that you get into by purchasing a $30 card at a retail store. The card has a unique number on it. Once you’ve purchased a card and activated it via a web site, coupons for restaurants and so on are emailed to you periodically.
However, if someone were to steal a bunch of cards or figure out the numbering sequence, we don’t want the cards to work.
Presumably, this is a solved problem because retailers are doing this with the products above (pre-paid phone cards, etc).
I can think of a number of ways to solve this problem, however I need to provide the “standard” solution that the retailers expect, so that the product will snap into their infrastructure in the normal way.
Thanks a lot!
I found out through other sources that there are about eight card processing services that integrate with the various retail locations.
Each retail location uses one. When a card scans through the register, the retailer notifies the card processing service (unlocking the PIN so that it can be activated), and then presumably the card processing service notifies us via an API call.
Then, when the customer goes to activate their card, we can tell which ones have scanned through the register (because they are unlocked). In this way, we get around problems surrounding stolen cards or guessed pin numbers.
The names of a few of these networks are: