In a cross-location gift card program, the location that sells a gift card holds those funds until the card is redeemed. If a card is redeemed at the same location that sold it, no money needs to move. If it is redeemed at a different location, the location that sold the card funds that redemption. We hold the transaction data for every location, reconcile the prior month's activity each month, and settle these amounts between locations by ACH.
Note: Every cross-location merchant must keep an HQ location bank account on file as a placeholder. This covers runaway liabilities, for example from closed or bankrupt locations.
How money moves between locations
The amount your location is debited or credited equals your loads minus your redemptions across locations.
If a gift card is redeemed at the same location that sold it, no transaction is needed.
If a gift card is redeemed at a different location, the location that sold the card owes the redeeming location the amount that was redeemed.
When reconciliation happens
Reconciliation runs once a month and always covers the prior month's activity.
Your report is available on or about the 15th of the month. If that date falls on a weekend or holiday, it moves to the next business day. You will receive an email with a link for you to login to access your report.
Reconciliation debits and credits occur on or about the 21st of the month, or the next business day if the 21st falls on a weekend or holiday.
What you need to provide
Each location completes a one-time DocuSign form so we can deliver your report login and move funds. The form collects:
Contact information for the person responsible for reconciliation at your location
The email address where the monthly notification should be sent
ACH banking information for gift card credits and debits
How to read your reconciliation report
Your monthly report summarizes the prior month's cross-location activity.
The Payable Amount column shows cards your location sold that were redeemed at other locations, which is what you owe those locations.
The Receivable Amount column shows cards other locations sold that were redeemed at your location, which is what those locations owe you.
The Net Pooling figure nets these amounts for the month. A positive net is an ACH deposit to your account; a negative net is an ACH withdrawal.
Each line item is a summary between two locations.
Note: If an ACH debit is returned, rejected, or reversed for any reason, including insufficient or uncollected funds, your account is suspended until all outstanding amounts are paid in full. A $30 returned-ACH fee applies to each returned transaction, and the balance must be paid in full before service is reinstated.
Examples
Example 1: A card you sold is redeemed at another store.
Joe buys a $25 gift card from your store. He spends $10 at your store and $15 at a store in Texas while on vacation. Because your store sold the card, you owe the Texas store $15 for the amount redeemed there. The $10 he spent at your own store needs no transaction.
Example 2: You redeem a card another store sold.
Joe buys a $50 gift card in Tennessee and redeems it at your store. Because the Tennessee store sold the card, that store owes you $50 for the amount redeemed at your location.
