Industry Insights
Restricted-Loop Gift Cards: Control Where the Value Gets Spent
What are restricted-loop gift cards? Prepaid cards sold and redeemed only within a single mall estate, keeping spend with participating tenants while daily clearing automatically settles tenant commissions.
A restricted-loop gift card is prepaid value that can only be sold and redeemed inside a defined estate — typically a single mall, or a named group of malls. That boundary is the point: it keeps revenue with the issuing operator and its tenants instead of leaking to branches and franchises outside.
Why Malls Issue Their Own Card
Malls sit next to competing malls, so attractiveness matters. A card that works only on the premises turns a gift into guaranteed footfall, and free cards handed out by tenants at opening events convert curiosity into same-day spend. Reported breakage on expired balances — around 8% in some markets — has been enough to make the program self-sufficient.
The Operational Reality
Tenant checkouts are too varied to integrate directly, so each participating store runs a dedicated POS terminal carrying five functions: activate, redeem, reload, void and check balance. Terminals connect over internet, telephone or wireless links, and clearing runs nightly — the selling tenant earns 1%, the redeeming tenant is charged 2.5%, and activations and redemptions net off by direct debit and credit.
Ogloba supplies the platform, card design and back office behind that model, so one interface can govern several malls, several card ranges and seasonal programs at once. The commercial control stays with the operator; the technology simply makes the boundary enforceable.
FAQ
What exactly is restricted about a restricted-loop card?
It can only be sold and redeemed inside a defined estate — typically one mall, or a named group of malls — so revenue stays with the issuing operator and its tenants instead of leaking outside.
Can a mall card programme pay for itself?
Reported breakage on expired balances, around 8% in some markets, has been enough to make the program self-sufficient.
Why do tenants use a separate terminal instead of their own checkout?
Tenant checkouts are too varied to integrate directly. Each participating store runs a dedicated POS terminal carrying five functions: activate, redeem, reload, void and check balance.
How do the selling and redeeming tenants settle between themselves?
Clearing runs nightly: the selling tenant earns 1%, the redeeming tenant is charged 2.5%, and activations and redemptions net off by direct debit and credit.
