Archive for the ‘industry news’ Category

Apriva and SparkBase Offer Secure Wireless Payment Processing for Gift and Loyalty Cards

Wednesday, March 17th, 2010

Scottsdale, AZ – March 17, 2010 – Apriva, the leading provider of end-to-end wireless transactions and secure information solutions, today announced it has reached an agreement with SparkBase, the industry leader in private label stored-value processing, to offer a secure wireless payment solution for the fast-growing prepaid stored-value market. By certifying the SparkBase solution, Apriva extends its ability to serve the growing list of merchants that use gift card and loyalty programs.

The integrated solution from Apriva and SparkBase provides merchants with an efficient method for processing loyalty- and gift-card transactions from virtually any location using public wireless networks. Based on Apriva’s fully secure wireless payment technologies, the solution also provides merchants with value-added services such as online reporting, order processing and customer management.

“Apriva is pleased to add SparkBase to our growing list of certified partners that supply gift card and loyalty products for resellers and independent sales organizations,” said Bill Clark, Apriva’s executive vice president for North America. “We anticipate that the integration of the SparkBase gift and loyalty program with Apriva’s wireless payment solutions will enable merchants to further optimize the success of their existing stored-value payments programs.” “Like Apriva, SparkBase is keenly focused on bringing forth new technologies that give merchants the opportunity to build revenue and enhance customer satisfaction,” said Douglas Hardman, CEO of SparkBase. “Partnering with Apriva will result in an unmatched merchant experience that allows our customers to fully leverage the profound economic and operational efficiencies of wireless processing for gift and loyalty transactions.”

About Apriva Founded in 1999, Apriva is the leading provider of end-to-end wireless transactions and secure information messaging solutions that meet the exacting security and reliability requirements of financial services providers, government entities, and public service sectors. Through its two operating groups, Apriva Point of Sale (POS) and Apriva Information Security Solutions (ISS), the company offers customers fully-managed, end-to-end, security solutions that incorporate hardware, software, network infrastructure and management tools. For more information, visit www.apriva.com.

About SparkBase SparkBase entered the stored-value industry in early 2004 as the first truly independent gift and loyalty processing network. SparkBase continues to lead in innovation with its proprietary gateway, using patent pending technologies for processing stored value transactions with traditional cards, and new mobile payments methods like SMS messaging. Developed in house at their headquarters in Cleveland, Ohio, SparkBase now serves as a leader in gift and reward processing. For more information, visit sparkbase.com.

Merchant Data Systems Selects SparkBase

Tuesday, September 8th, 2009

Cleveland, OH, September 08, 2009 — SparkBase (www.sparkbase.com), the industry leader in private label stored value processing, announces that Merchant Data Systems, the premier Miami, FL based Independent Sales Organization (ISO), has selected SparkBase as its Gift and Loyalty network provider. In announcing the relationship, Douglas Hardman, SparkBase CEO states, “We are very pleased to have been selected by Merchant Data Systems to be their Gift and Loyalty provider. Merchant Data Systems is a forward-thinking company with a highly experienced management team. We are excited about working with them to power a first-class stored-value offering for their growing merchant base.”

Drew Freeman, President of Merchant Data Systems, says of the relationship, “Merchant Data Systems did an exhaustive search before selecting SparkBase as our Gift and Loyalty network. We were very impressed with SparkBase’s technology and leading-edge functionality, along with the company’s philosophy of allowing us to brand the offering, assemble customized products in-house and retain the direct relationship with our merchants. We are very excited about leveraging this partnership into a strong program that will benefit both our sales agents and our merchants, helping us to continue to grow our company.”

The SparkBase network allows its resellers to offer merchants, or groups of merchants, sophisticated gift and loyalty offerings with advanced features including text message and email marketing. Merchant Data Systems will begin offering their new Gift and Loyalty programs on the SparkBase network beginning in September 2009.

About SparkBase
Since 2004, SparkBase is the technology leader for the processing of private label gift and loyalty programs. Headquartered in Cleveland, OH, SparkBase processes millions of transactions annually for merchants in five countries. SparkBase uniquely offers its client the ability to private label stored-value programs on a state of the art network, without involving a middleman. SparkBase’s innovative business model and robust network have contributed to its annual growth of 150% for the past two years, an amount that will be exceeded in 2009. For more information, please visit sparkbase.com.

About Merchant Data Systems
Merchant Data Systems was founded in 1997 and offers ISO/MSP programs, Credit Card Processing, Debit Card Processing, Automated Account Settlement, Check Guarantee, Check Conversion, Electronic Benefits Transfer, Equipment Sales & Leasing, 24/7 Customer Service and Technical Help Desk, Cash Advances, Gift Card and PCI Compliance solutions. Merchant Data Systems focuses on the needs of the merchant community including the acquisition of residuals and merchant portfolios.

Merchant Data Systems is located in Miami Beach, Florida.

SparkBase 3.0 featured in "New Products" section of The Green Sheet.

Tuesday, April 28th, 2009

http://www.greensheet.com/gs_online.php?story_id=1321

Gift card network at your service

T he gift card network run by stored-value provider Sparkbase is an online platform served on a platter – a moldable tool for ISOs marketing loyalty programs.

“That’s really the secret sauce of Sparkbase … everything we do, none of it is branded as Sparkbase,” said Doug Hardman, Chief Executive Officer at Sparkbase.

“We basically give the tool to the ISO and let the ISO deal with their customers however they want to do it.”

At the center of the Sparkbase network is http://www.getyourbalance.com, where customers check balances on gift cards much like one would check an account balance through an online banking Web site.

Hardman said GetYourBalance.com was founded in 2005, but Sparkbase’s network has more recently been updated to integrate its other features through the same application programming interface (API).

Sparkbase 3.0

New features include the ability for an ISO to brand a slice of Sparkbase’s stored-value network – and the gift cards that are made on it – with its own logo, and to incorporate text messaging into its gift card programs.

“We’ve redesigned our API so it’s even easier for ISOs and financial institutions to integrate directly into our gift and loyalty network,” Hardman said.

“We give them a tool kit and they can plug directly into it so that they’re looking at real-time information without having to go into our network … this plugs into whatever it is they’re using.”

Texting tool

Sparkbase’s text messaging service can be used as both a means of payment and a marketing vehicle, according to Hardman.

He said merchants who operate through the network can provide balances, and even conduct loyalty card transactions through customers’ cell phones when they don’t have their cards, by texting a code to the customer’s phone.

“We’re using a virtual gift card as our new SMS [simple message service] functionality where, if you don’t have your card with you, you would text a certain short code and it’ll text you back something,” Hardman noted.

Marketing edge

On the marketing end, Hardman said merchants can use the Web portals run by the ISOs under which they operate to obtain customer data for advertising.

“[A merchant] can send text messages if he wants, he can send e-mail blasts to [customers] if he wants, he can market to them in whatever fashion that the ISO is letting them see their data,” Hardman said, adding that customers who register for loyalty card services have the option of shielding themselves from advertisements.

Meanwhile, ISOs themselves have a marketing edge in attracting merchants.

They have the ability to brand their online gift card networks within a “Web interface that’s a whole lot slicker than anyone else’s in the industry right now,” Hardman said. “We have one of the most established stored-value networks in the industry, and we continue to push the technology forward,” he added.

“Our whole business model is let the ISO do what they do best, and we’ll do what we do best.

“What makes Sparkbase [dramatically] different from everybody else is we don’t retain any ownership over any of the clients or any of the data.

“It’s all free for them to access at any time so we’re not restricting anything ever for them. This is just their branding when an ISO plugs into the Sparkbase network.”

Sparkbase
216-867-0877
www.sparkbase.com

SparkBase Certifies Gift & Loyalty Processing on Hypercom Optimum M4230

Monday, April 20th, 2009

SCOTTSDALE, Ariz., Apr 20, 2009 – Hypercom Corporation (NYSE: HYC) and SparkBase today announced that SparkBase has Class A-certified its Gift and Loyalty processing application on Hypercom’s Optimum M4230 mobile payment terminal for the retail and restaurant markets. The high-performance, PCI-PED-approved terminal features long-range GPRS with dial back-up, the industry’s top security certification, 32-bit multi-application processing for maximum transaction speed and 24MB memory that is two to three times larger than similar products to accommodate value-added applications such as the SparkBase ISO Brandable gift and loyalty software.

“The Optimum M4230 terminal is truly in a class by itself,” said Doug Hardman, CEO, SparkBase. “We always try to make sure our ISOs have the latest and greatest terminals to private label to their merchants, but the wireless market is very under served. This terminal has the feature set they have been asking for, and a price point that merchants are comfortable with.”

The certification enables gift, loyalty, and community rewards transactions on the Optimum M4230 to be conducted from virtually anywhere on the SparkBase Network.

“The M4230 is our lead mobile product in the US and SparkBase’s Class A certification strengthens our ability to gain market share in the burgeoning mobile sector,” said Bernie Frey, Vice President, North American Sales, Hypercom Corporation.  “Mobile terminals previously sold in North America for the most part have been less than effective.  With the M4230, we bring merchants a sensible and reliable product that they can use with complete confidence to grow their business.”

For additional information on Hypercom’s Optimum M4200 mobile platform, please visit: http://www.hypercom.com/products/mobile.asp.

About SparkBase (www.sparkbase.com)
Since 2004, SparkBase has been the technology leader for the processing of private label gift and loyalty programs.  Headquartered in Cleveland, OH, SparkBase processes millions of transactions annually for merchants in five countries. SparkBase uniquely offers its clients the ability to private label stored-value programs on a state of the art network, without involving a middleman. SparkBase’s innovative business model and robust network have contributed to its growth of more than 150% annually. For more information, please visit sparkbase.com.

About Hypercom (www.hypercom.com)
Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products and services. The Company’s solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. With its acquisition of Thales e-Transactions business in 2008, Hypercom became the second largest provider of electronic payment solutions and services in Western Europe, and solidified its position as the third largest provider globally.

SparkBase Featured in "Industry Update" Section of The Green Sheet

Monday, April 13th, 2009

http://greensheet.com/gs_online.php?issue_number=090401&story_id=1275

SparkBase, a customized stored-value programs processor, expanded its sales team. Bennett Kaufman is the company’s new Sales Director and Alan Semel was appointed its National Sales Manager. Kaufman will focus on driving new business growth strategies. Semel brings 20 years of payments industry expertise to SparkBase and will oversee all of the company’s new business efforts.

The Great Gift Card Land Grab

Monday, May 12th, 2008

In 2004 Gift Cards were known, but only starting to get popular. In 2005 it was all the rage. In 2006 I don’ think I got anything BUT gift cards. 2007 saw the market double yet again. Is there any end in sight? The short answer: Yes, and no. Let’s explore!

It’s hard to find a big-box retailer that doesn’t take gift cards. In fact, it’s getting hard to find a small retailer that doesn’t take them either. This means that retailers are starting to see the benefit to “Going Plastic” by using gift cards as a way to keep customers. The benefits of having up to 18% breakage is undeniable. This is often the determining factor from the retailers we talk to. There are several small-town merchants on the SparkBase network that have more than $50,000 in card balances that haven’t been used in 2+ years. What are the odds of the customers coming in to use that money after 2 years?

On the flip-side, the number of merchants that are available to sign-up as new customers is starting to wane. 3 years ago, only 5%-10% of the small “Mom & Pop” businesses in the US had a Gift Card program. That number is starting to shrink on a monthly basis as Credit Card ISOs push Gift Cards as a merchant retention tool. This model is simple. Give the program to the merchant for free, and if they ever leave your Credit Card processing, you still have a hook into the merchant. It’s easy to move your Credit Card processing, it’s almost impossible to move your Gift Card processing.

A merchant’s inability to move the Gift Card transactions between multiple companies isn’t a bad thing though. When a merchant signs up for a Gift Card program on the SparkBase network, they have the security of SparkBase behind them, even if they don’t know it. We work behind the scenes of the ISO to make sure that the latest terminals are supported, and the system remains up and running. If they were to go with one of our smaller competitors that only has a few hundred merchants, any number of things can go wrong and they could potentially be left with thousands of gift cards in the field, and no idea what the balances are.

What makes the “Great Gift Card Land Grab” so interesting to watch from this end isn’t seeing all the ISOs try to wrap their merchants into contracts, it’s seeing the diversity of businesses that are able to use Gift Cards. It’s also interesting that very few customers are ever displeased with their program. It’s a win-win for everyone.

Sharper Image Gift Card Debacle.

Tuesday, March 4th, 2008

I was sent the following link from about a dozen friends and clients this week.

Bankruptcy makes gift cards worthless

If you don’t feel like reading it, that’s fine…here’s the meat of the article.

The Sharper Image filed for Bankruptcy protection, and as a result, aren’t honoring their gift-card program any longer. My initial reaction was “Of course…if a company goes under, you can’t spend it there either.” Then I started reading between the lines for the deeper meaning of the issue at hand.

Merchants rely on what is referred to as “Breakage” to help offset the cost of a Gift Card program. Normally, a merchant can expect that somewhere between 12%-18% of the money put on a card won’t ever be redeemed. One guy may spend all $20, another $5 before he looses it, and another may throw it out mistakenly in a pile of wrapping paper while trying to straiten up the house before Christmas dinner. (That’s NEVER happened to me!)

Retailers bank on this because they generally pay $.25 for the transactions coming and going. If you buy a $100 card, the retailer gets all $100 up front, and a network like SparkBase keeps track of the money for the merchant. Over time…2-3 redemptions will happen, and the merchant will have paid out $1.00-$2.00 in fees for having someone else process the transaction. Normally, they don’t mind because the law of breakage says they’ll keep about $13.00 of that $100.00. Now, back to the matter at hand…

Because they have to honor the card indefinitely in some states, Gift Card revenue isn’t required to be reported as income until they redeem it. If I buy a $100 card to “Moe’s House of Shoes” down the street, and loose the card, it’s the same as loosing a $100 bill. Moe never has to honor the card, but if I DID bring it in, he’d have to. It’s like an IOU that never expires, and is completely transferable. So at the end of the day, if I loose my card, and never spend that $100…Moe never has to pay income tax on it, because if I show up with it…he’ll honor it. The Home Depot recently had to deal with $43,000,000 in breakage.

The Home Depot tallied gift card breakage from 1998, when it began its gift card program, to 2001, and reported it as income in its June 2 filing. “Since we had not reported breakage before, this was essentially just catching up,” said Home Depot Marketing Manager Diane Linke. “Going forward, there will be additional breakage reports, but not nearly on the magnitude of this quarter.”

So back to our friends at The Sharper Image. I don’t have access to the totals, but they may have HAD to expire the cards in order to comply with bankruptcy laws. I’m no attorney, but I’d hazard a guess that this is the reason.

The question I was asked most often was “Does this effect your business?” Not in the slightest. Consumers are still choosing Gift Cards as the standard for all their gift giving needs. My business is doing nothing but growing.