One of the first questions we get asked is how do my franchisees get paid for selling gift cards. For example, one location sells a gift card and another location redeems the same gift card, how does the location that redeems the gift card get paid?
LoyalMark has come up with a fast and hassle free Electronic Funds Transfer/Automated Clearing House (EFT/ACH) service that supports money transfer from one bank account directly to another without any manual processing. The settlement service allows debits and credits to be reconciled across all franchisee locations based on LoyalMark gift card transactions.
Settlement occurs at pre-determined intervals and funds are either withdrawn or deposited into the franchise or corporate bank account. Each location/franchisee will be required to provide their applicable banking information.
Settlement fees are exclusive of fees that may be levied by the Merchants bank upon receipt of the transfer. Fees are paid electronically to LoyalMark at the time the transfer is processed.
Funds are either withdrawn or deposited from/to franchisees’ bank accounts and to/from a Central Bank Account on a set frequency based on gift card transactions.
Franchisor monitors the net amounts owed and due among all locations using LoyalMark reports. All floats are under the control of franchisor with no liability to their franchisees.
Participating franchisees receive a report before settlement occurs.
The benefits of Electronic Funds Transfer/Automated Clearing House (EFT/ACH) service are that it ensures quick, secure and accurate fund transfers, eliminates administration costs in manual reconciliations, and it will reduce fund transfer disputes among franchisees. It offers franchisor and franchisees easy to follow settlement procedures, and it will enhance franchisor and franchisees’ relationship. The Electronic Funds Transfer service provides flexibility for merchants to choose an appropriate settlement service, and it improves LoyalMark gift card program implementations in a franchise organization. Also, the LoyalMark Settlement Service can occur at pre-determined intervals (monthly, quarterly or on request).
