A loyalty card is a plastic or paper card, visually similar to a credit card or debit card that identifies the card holder as a member in a loyalty program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card, and in the United States either a discount card, a club card or a rewards card. It is also called by many other names like rewards card, points card, advantage card, and club card.
Cards typically have a barcode or magstripe that can be easily scanned, and some are even chip cards. Small keyring cards (also known as keytags) which serve as key fobs are often used for convenience in carrying and ease of access. A retail group may issue a loyalty card to a consumer who can then use it as a form of identification when dealing with that retailer. The card is the visible means of implementing a type of what economists call a two-part tariff. By presenting the card, the purchaser is typically entitled to either a discount on the current purchase, or an allotment of points that can be used for future purchases.
The loyalty card issuer requests or requires customers seeking the issuance of a loyalty card to provide a usually minimal amount of identifying or demographic data, such as name and address. This loyalty card can be used to determine, for example, a given customer's favorite brand of beer, or whether he or she is a vegetarian.
Where a customer has provided sufficient identifying information, the loyalty card may also be used to access such information to expedite verification during receipt of cheques or dispensing of medical prescription preparations, or for other membership privileges. Loyalty programs are predominantly run by retailers and the service industry, but recent advances in proof of purchase systems and supporting technology is now increasing participation by manufacturers of consumer products.
In the U.S., several major supermarket and fish market chains and at least one major pharmacy require the loyalty card in order for customers to receive the advertised loyalty price.
