DataCandy's clearinghouse (ACH) is an optional module for processing le liability generated from gift card dollars, loyalty points and reward transactions between merchants and their head office.
DataCandy acts as the calculator for all the amounts that should be exchanged. You may decide to get access to our reports only or to get the clearinghouse to move the money for you, via EFT file generation.
Clarification:
Both the reports only or the full clearinghouse options are only available on our DC PRO package and with specific banks. Some banks may still require some manual transfer of EFT files.
Additonal fees will apply for the setup of a full clearinghouse. If you are interested in knowing more about this feature, please contact DataCandy to see if it is the right match for you.
Gift Card Clearinghouse
Merchants are charged for all gift cards that are sold at their location and are reimbursed those funds when a gift card is redeemed at their location. The ACH ensures that the gift card liability can be protected.
For example:
If a client buys a gift card in Store A, the dollar value is taken from the store and housed in a corporate clearing house account.
Then when the member goes to store B to use the gift card, Store B is paid from the clearing house account.
Loyalty Clearinghouse
Merchants are charged for points or free items when they are earned and are reimbursed when the points are used or the items are redeemed at their location. The transfer of money between the main account and the merchant is based on ratios between points and dollars.
Points:
A member accumulates their points at Store A. The dollar value of those points is taken from store A and housed in the corporate clearinghouse account.
Then when the member goes to store B to use those points, Store B is paid from the clearinghouse account for the monetary value of the points .
Punch Cards (free items) :
A member buys 5 coffees at 5 different merchants and earns a free coffee.
When the free coffee is earned, the cost of that coffee is divided by these 5 stores and taken to be housed in the corporate clearinghouse account.
The member then redeems their free coffee at a 6th merchant. The cost of that free coffee goes to the 6th merchant, from the clearinghouse account.
The funds are held by the head office until the reward is redeemed. If the reward expires before use, the money is returned to the 5 merchants.
Frequency
The transactions are fed into the head office and merchant bank accounts daily, weekly, bi-weekly, or monthly.
Clients with both loyalty and gift card programs may want them to run the ACH for each one at a different frequency.