Prepaid cards, memberships and class packs: getting paid before customers walk in
A stamp card rewards a customer after they spend. These three work the other way round: the customer pays first, and comes back to use what they paid for.
Why pay-first cards work
Money already spent is the strongest reason to return. A customer with a balance on their card, a membership they pay every month or six classes left in a pack does not need reminding why to come back. For the business, the money arrives before the visit, which helps with cash flow in quiet months.
They are also easy to explain at the counter, because customers already know them from gift cards, gym memberships and coffee subscriptions.
Prepaid balance: top up now, spend later
The customer loads money onto their card and spends it with you over their next visits. To make topping up worth it, add a bonus for larger amounts: put in a bit more and get a little extra. Keep the ladder short, two or three steps, so the choice is quick at the till.
- Suits: cafés, bakeries, juice bars, canteens; anywhere people come often and spend small amounts.
- Watch: the rules on unspent balances and refunds differ by country, so check what applies to you before you launch, and say clearly on the card how long a balance lasts.
Membership: a monthly fee for a set of benefits
The customer pays a fixed amount every month and gets something in return: two haircuts a month, a coffee a day, a discount on everything, priority booking. The payment renews by itself until they cancel, so the business can count on it.
- Suits: barbers, salons, car washes, coffee shops with regulars, studios.
- Watch: keep the benefits simple enough to check at the till in a second, and make cancelling easy. A membership people feel trapped in turns regulars into critics.
Class packs and visit packs
The customer buys a pack of visits upfront (ten classes, five washes, eight lunches) and uses one each time. It is the stamp card in reverse: they have already paid, and every visit counts down. A pack with an expiry date also gives people a gentle reason to keep their rhythm.
- Suits: gyms, yoga and dance studios, tanning, laundries, lunch spots with regulars.
- Watch: say clearly when the pack expires, and remind people before it does.
Making them work on a phone
All three are better as a card in Apple Wallet or Google Wallet than on paper or in a till system the customer cannot see. The balance, the benefits left this month or the visits left in the pack sit on the card itself and update after every visit. A message can reach the lock screen when a balance runs low or a pack is about to run out, which is often what brings the next top-up.
Payment has to be handled properly: card payments taken online, the money paid into your own account, receipts sent, refunds possible. TAPPI runs all three card types this way, with payments going through Stripe straight to the business, but whichever tool you use, check where the money goes and who holds it before you sell the first pack.
Which one to start with
- Customers come several times a week and spend little each time: a prepaid balance.
- Customers come on a regular schedule for the same service: a membership.
- Customers book sessions or classes: a pack of visits.
You can run a stamp card alongside any of them. Many businesses do: the stamp card for everyone, and a pay-first card for the regulars who want it.