Product rebates present yet another potential niche for prepaid cards, and a rebate-processing company is working with MasterCard Worldwide on a prepaid initiative designed to improve its rebate fulfillment and redemption process.
Ohana Cos. Inc., which works with retailers such as Sears, Roebuck and Co. and Kellogg Co., on January 5 announced a partnership with MasterCard to use prepaid cards as part of a rebate process that ties directly into merchants’ point-of-sale systems. Consumers who shop at merchants associated with Ohana have the option to have product rebates deposited into the accounts of one-time-use, MasterCard-branded prepaid cards instead of receiving them by check.
“We believe [product rebates] are a strong segment for prepaid cards and one that shows the flexibility of prepaid to offer an efficient, effective payment tool for consumers,” says Neil Dugan, MasterCard vice president of prepaid, Americas.
Ohana, which also manages the card program, has relationships with multiple prepaid card issuers, according to the MasterCard spokesperson. Ohana representatives were unavailable for comment.
Deals such as the one Ohana stuck with MasterCard provide “opportunities for prepaid in areas such as rebate fulfillment,” Dugan says. A struggling economy has spurred consumers to seek the best deals and “best overall experience from their retail interactions,” he adds. “As a result, retailers and manufacturers alike are looking to incentive options such as rebates as an opportunity to attract and retain their customers.”
Prepaid cards can help enhance rebates because they “provide customers simple and flexible redemptions while also providing greater opportunities for merchants and manufacturers to increase loyalty and spend,” Dugan says.
Besides a rebate process linked to a merchant’s POS system, Ohana’s platform also provides consumers “valuable redemption offers to customers when they file their rebate offers,” according to a statement from Ohana.
