Please help me create a stored value system for customers

[mikesclub]

I've asked this before, but never found a workable solution.

I want to create a stored value system for my employees and for some customers, similar to the Starbucks cards. But I don't want to use Square's gift cards. The fees are not unreasonable, but they are too much for us. We're already planning to give discounts for using the system, so that, combined with the gift card fees, would kill us.

I've tried a few different approaches, but none do what I need.

Here's how it should work:

A customer physically walks into the store and loads an amount onto their account. Let's say $100. We have an item set up to receive such payments.

Then, the customer can shop and charge payments against that balance until it's consumed.

The customer can also add more funds to their account at any time.

So, how can I do that?

We tried using house accounts. The problem is, house accounts are designed to receive payment at the end. We receive the payment up front. I can't figure out how to close out the house account purchases without what appears to be double payment. That would cost me in sales tax every month.

Also, once the balance is consumed, how do I "reset" the house account balance? Let's say they've burned through all or part of their available balance, and want to add more money, how do I remove the previous transactions and update their new available balance? All my tests only let me refund purchases, but they don't disappear from the house account, and they still count as consuming part of the available limit.

I've also tried using tabs, which work pretty well, but they are not searchable. Tabs are stored in chronological order. If I have dozens, or hundreds of tabs, it's very hard to quickly find a particular customer's tab.

Does anyone have any ideas? Please help.

[JTPets]

I cannot think of a way to do this inside of square without gift cards. Have you considered e-giftcards (digital only giftcards) with square?

[mikesclub]

Same problem. The reload fees are a killer. If the customer reloads their gift card, there's the regular transaction fee (if they reload with a credit card) plus the gift card reload fee. That takes too much from us.

[BidwellPerk]

Unfortunately, you can't have your cake and it it too, on this one. I do a similar thing with some trades I do. I give them a gift card and then save the gift card number as a Card on File in their profile. When I load up their cards with a balance ( I trade my massage therapist $120 each time), I discount off the sale so I'm essentially reloading her card for free. And she comes in and "pays" for her purchases with the card on her profile. It's works pretty well for me and the cost of the Gift Cards sucks but honestly so many never get redeemed you come out well ahead, in my mind.

[MayaP]

@BidwellPerk Thanks for sharing your experience and helping out! Your approach is a great workaround, and I appreciate you adding your insight to the conversation.

[MayaP]

Thank you for trying to help! @JTPets

[rtfulk]

@mikesclub I don’t know if this would work and it may be a crazy thought. Wonder if you could setup the loyalty program. Like 1 star equals 1.00, if someone wanted to prepay 100.00 log into the loyalty and add 100 stars, when they come in and the customer is checking out sign them in and then redeem the amount of stars for the order amount. It would count down the amount and would be easy to reload and if the customer uses cashapp, they can track their totals.

This may or may not work for you, but it’s an option and a way to keep track.

[MayaP]

Thanks for sharing your workaround! This is super helpful and a great idea. Your feedback here is always appreciated @rtfulk! 

[MayaP]

Hey @mikesclub , does @rtfulk solution work for you? Let me know if you need any further assistance!

[WoodCandleCo · Accepted solution]

@mikesclub if these are your best customers, I think using house accounts and collecting payment at the end isn't a terrible idea. Think of it as, "Hey, because you're a dedicated customer, we're inviting you to this program. The benefits are XYZ, and better yet, you get additional time to make payments."

I would require a card on file and set it up as autopay. As payments are automatically made, the "credit line" goes back to zero automatically. This is similar to how I function with a few of my best wholesale clients. They love it because they don't have to worry about invoices or payments, I love it because they usually end up spending more with me (I think the psychology of not having to pay right away makes them spendy, lol).

If these are just general customers, @BidwellPerk's recommendation sounds like a great one.

[MayaP]

Thank you for taking the time to help out, @WoodCandleCo ! I love seeing sellers support one another with thoughtful advice. Your approach to house accounts and autopay is a grand strategy, and I appreciate you sharing your experience. 🙏

[MayaP]

Hey @mikesclub - I hope some of these suggestions will work for you. If you need anything else, let me know!