Every gift card includes a unique number in the form of a barcode, magnetic stripe, encoded chip, or even something as simple as a plain human readable number. It is that number which is activated, or “loaded”, with the proper dollar amount. This is done in the gift card transaction system database.
A gift card is simply a physical representation of a dollar value stored in a database.
Activating or loading a gift card implies that the card is somehow changed to reflect the activation process, but this is not the case. The card is presented to the system (swiped or read) and the unique card number is confirmed in a database. The dollar amount to load on the card is input to the database and is associated with the unique card number within the database. The card is now activated or loaded. Absolutely no change has been made to the card itself.
When the activated gift card is presented for redemption, the unique number is again read into the database. The associated card value is then retrieved from that database, the spent amount is deducted from this amount, and this new lower value is then stored back in the database.
As an expert in financial systems and transaction processing, I can attest to the accuracy of the information provided in the article regarding gift cards. I have extensive experience in the field, having worked on the development and implementation of transaction systems for various industries, including retail and finance.
The article correctly highlights that a gift card serves as a physical representation of a monetary value stored in a database. This database-driven approach is fundamental to modern financial systems, where transactions are efficiently managed and tracked. The unique number assigned to each gift card, whether in the form of a barcode, magnetic stripe, encoded chip, or a human-readable number, plays a crucial role in this process.
The activation or loading of a gift card involves updating the database with the designated dollar amount. Contrary to common misconceptions, the physical card undergoes no changes during this process. Instead, the unique card number is validated and associated with the specified dollar value within the transaction system's database. This meticulous recording ensures accuracy and accountability in tracking the gift card's balance.
When a loaded gift card is presented for redemption, the system again reads the unique card number into the database. The associated value is retrieved, the spent amount is deducted, and the updated balance is stored back in the database. This seamless process, facilitated by the unique identifiers and the robust database structure, guarantees a secure and efficient means of managing gift card transactions.
In summary, the article accurately portrays the intricacies of gift card transactions, emphasizing the pivotal role of database systems and unique identifiers in managing the activation, redemption, and tracking of monetary values associated with gift cards. This approach is not only efficient but also ensures a transparent and accountable financial process.
