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    Why are clients asked to “pledge” money for gift cards/vouchers?

    This article will explain why salon customers are "pledging" money in return for a complimentary gift card

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    During COVID:19 pandemic, a number of credit card processors have stopped allowing any online gift card transactions because of the fraud and charge back risk. Processors are afraid that businesses will sell e.g. $10,000 of gift cards and go out of business. Meaning that the processor will be on the line liable for that $10,000 in the event of charge backs. 


    In Phorest, we know that you have a great business and we have been working with International Bancard & Stripe risk department to make the changes needed to ensure your salon still has this service at the moment, when it's really needed.  As you may have heard, some industries have had their CC processing shut down all together during this time, so we really appreciate our processor working with us to keep this working. 


    Firstly, there has been an introduction of a max gift card limit of $400 which may be able to lift back up once the pandemic is over. 


    Secondly, the purchase page was reworded to clarify better that your clients are actually pledging the salon the money in return for a complimentary gift card of the same value. In the small print, it confirms that there is no guarantee they will be able to use it. Please ensure to match the wording of your gift card / pledge marketing to match the wording on the online gift card sales page.


    Thirdly, there will be an introduction of a limit on the number of times a particular credit card can be used within a month. 

    Should your salon want to discuss anything further, please contact growteam@phorest.com and your Business Advisor can answers all your queries. 

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