StoreFinancial is a provider of prepaid card processing and program management services. It was founded by a retailer who wanted to replace gift certificates. StoreFinancial offers full-service program management and processing. It provides Restricted Authorization Network cards that can only be used at specific merchants as well as open-loop cards that can be used anywhere. The company services clients in Canada, the US, and the UK across industries like retail, casinos, franchises, and incentives.

1. Prepared By: Dawn Abankwah, StoreFinancial

2. StoreFinancial - History
Founder was Built Started in the Branching
a Retailer software mall space out
• Wanted to • From ground up • 99% of malls in • Incentives
replace Gift • Easy to use, Canada • Casino / Resort
Certificates implement • Downtown
• Solution for Multi • Positive • Franchise
Vendor Networks experience • Partner
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3. Company Overview
StoreFinancial provides processing and program management services for Restricted
Authorization Network (RAN) and open-loop programs in multiple countries.
• Full-service program management • Canada
• Processor • United States
• Third-party processing • United Kingdom
Services Markets
Leading
Products
Verticals
• Restricted Authorization • Shopping Centres/Retail
Network (RAN) • Casinos/Resorts
• Open-loop • Franchise stores
• Incentives
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4. Services
StoreFinancial offers a comprehensive and integrated prepaid platform.
•Full-Service Program Management •Processor
 Implementation support & training – on site and remote  Authorization & card account management
 Card design and fulfillment; inventory management  Settlement/clearing & reporting
 Daily operational support & dedicated account management  Activation & redemption reporting
 Automated balance inquiry line, internet balance inquiry /
q y , q y  Gateway integration in major markets
y g j
transaction history; balance in “Approval Code” on merchant
 Dynamic currency conversion capability
receipts
 Certified MasterCard® TPP processor
 Toll free support in multiple languages, 7 days a week
 FDR Certified
 CardSpot (proprietary activation software )
 SAS 70 Level II certification – 6 years
L l tifi ti
 Single or bulk activations on site
 PCI Certification
 Automated settlement of card activations
 Full reporting via secure, password protected reporting suite
 Complete regulatory compliance
•Unique Applications
 Distributor funded promotional cards – pay only for the cards
which are redeemed
 O
Online sales support
 MFDN products
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5. Products
StoreFinancial can customize a prepaid card program utilizing a combination
of card types to meet your objectives.
• Restricted Authorization Network (RAN) program
 Cards can only be used at participating merchants - no risk of leakage
 Partner cards (i.e. a single card redeemable across 2 retail partner POS systems)
 One program over multiple POS, merchant acquirers, or retailers with no change to
POS terminals
 Cards process on MasterCard® Network but look like private label cards
 Cards are bank issued and funds are guaranteed by bank
 Full reporting on activations & merchant redemptions
•Open-loop
 Accepted everywhere network is accepted
 Customize with your brand
 Reporting on general use or specific merchant groups
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6. Using StoreFinancial Products
Incentives and Rewards
•B2B / Corporate Incentives •B2C / Consumer Incentives
 Employee rewards and recognition  Loyalty programs: reward
 Safety and long service programs  Loyalty programs: vehicle to drive
 Client / channel partner gifting  Gift with purchase
 B2B loyalty programs  Rebate
 Charity / scrip / fundraising  Contest prizing

7. Using Open Loop or RAN Gift Cards as
Rewards to Drive Program Loyalty
1. Engagement
• Engagement is driven by the perception of value of your loyalty program by your members. It comes down
breadth of choice (earning and spending rewards); ease of use (redemption of points / miles).
• Year over year, popularity of RAN / open loop gift cards grows. *In 2007, Canadian gift card purchasers ranked
“store” (brand) and “choice” almost equally in importance. By 2009, “choice” was ranked 13% higher.
• Between ’07-’09, the number of people who “strongly agreed” that they preferred open loop cards grew by 20%.
• (Study conducted by Global Prepaid Exchange)
2. Marketing
• Your brand already resonates with your members, as do those of your partners.
• The MasterCard brand is a consumer friendly trademark which reaches all segments of Canadians.
• Redemption reporting provides insight on how and where the cards are being redeemed – valuable information for
you and your partners.
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3. Economics
• According to the Incentive Federation**, g cards are the most p p
g gift popular items in the majority of rewards p g
j y programs
– but the runners up are often the most expensive to ship and afford the lowest margins (i.e. electronics; computer
accessories)
• Open loop gift cards allow members to purchase anything from large screen TV’s to phone chargers – but can be
fulfilled to the recipient for a fraction of the cost. You may suggest an open loop gift card at check out as an
alterntavie when members have selected a big screen TV for example, and offer to reduce the point spend.
• RAN / Partner cards can achieve the same result, but ensure that the spend stays within your partners’ retail
locations
• (**Study published in a white paper “Putting Trophy Value into your Gift Card Program)” - commissioned by IGCC / IMA))
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