New Software from Smart Transactions Systems Makes Gift Card Programs More Affordable for Small Merchants

Boulder, CO August 14, 2002, Smart Transaction Systems, Inc. a leading provider of card-based transaction processing solutions, today announced the rollout of several new loyalty program features that help groups of unrelated merchants build "coalition" or multi-merchant customer loyalty programs.

"The multi-merchant program is great for any group of merchants with a common customer base, such as a chamber of commerce, mall or resort community. The program makes it possible for a single card or key tag issued to customers to drive real-time reward programs at many different merchants. Consumers like this approach because it means less plastic in their billfolds," said Maria Dent, VP of operations for Smart Transaction Systems.

Smart Transaction Systems tracks the cardholder's point balance at each of the participating merchants and produces real-time reward messages printed from the POS terminal that change as the cardholder's point balance changes. Each of the participating merchants can create its own unique customer incentive program based on a single card that is issued to consumers. The large number of options available to each merchant means that there are very few limitations on the types of incentive programs each merchant can offer.

The multi-merchant customer loyalty program works in conjunction with existing offerings from Smart Transaction Systems that give the merchant the ability to define all aspects of a loyalty program, including reward levels, instant rebate options and promotional periods during which cardholders can earn extra points. Smart Transaction Systems also produces a wide variety of reports for the organizations using the system. Merchants can use the information to better understand their customers and target their marketing efforts more effectively.

Additional enhancements include an option that allow merchants to process customer loyalty transactions using the customer's phone number if the customer does not have his/her card or key tag handy. A prepaid card or gift card with a cash value on it can also earn reward points each time the card is used to purchase goods or services.

The first factor was functionality. In addition to functioning effectively in the retail environment, STS software had the ability to handle the special needs of the restaurant environment. "No one could compete with STS on capturing tips. The system is easy. Tips are captured just as they are on MasterCard and Visa systems, and this makes the process of training new employees a very seamless one.

"We already have clients using the multi-merchant option for college and community-based programs. It's also a great way for marketing companies to take consumer-oriented programs to the next level and improve their data mining capabilities," says Ray Clopton, President of Smart Transaction Systems.

"The Smart Transaction Systems multi-merchant loyalty program further enhances the value of our card to students by providing incentives to use the card more often," said Cliff Frye, President of University Meal Deal, Inc. in Sharon, MA. "It also helps our merchants to increase traffic during off-peak times."

Founded in 1998, Smart Transaction Systems provides card-based payment systems and customer loyalty programs to a wide variety of companies throughout the United States. For small to medium-sized businesses, Smart Transaction Systems provides hosted gift card and loyalty programs that are reliable, easy to use, and affordable. For larger organizations, the company provides powerful transaction processing systems that allow these organizations to bring gift, loyalty, and private label credit card programs in-house so they can gain maximum control of these programs. Smart Transaction Systems has operations in Boulder, Colorado and St. Louis, Missouri. For more information about Smart Transaction Systems, please visit www.smart-transactions.com.

University Meal Deal is a prepaid debit card service offering meal plans to suit every student's dining preferences. Their cardholders enjoy eating at many local restaurants - when and where they want. Cardholders also receive a reward points and discounts at featured restaurants throughout the semester. University Meal Deal offers the ease and safety of a cashless environment. Parents can be confident that money added to a University Meal Deal account is spent as intended. Cardholders enjoy special discounts at participating restaurants. Alcoholic beverages and tobacco products cannot be purchased with the University Meal Deal card. For more information about University Meal Deal, please visit www.umealdeal.com.