Managing Tango Card Funding and Gift Cards

Effective management of Tango Card funding and gift card selections ensures users can redeem accumulated points without delays while maintaining financial control and operational efficiency. This guide provides comprehensive strategies for funding account management, gift card catalog optimization, and proactive monitoring to support successful redemption programs.

Requirements

To manage Tango Card funding and gift cards, users must be assigned a security role with one of the following permissions:

• Administrator System Role
• Other Settings: Access Reward Redemption Enabled

Understanding Funding Fundamentals

The Funding Model

How Tango Card Funding Works:

The Redemption Module uses a prepaid account model where administrators fund a Tango Card account balance in advance. When users redeem points for gift cards, the gift card cost is deducted from this balance. This prepaid approach provides:

• Predictable cost control and budget management
• Instant gift card fulfillment without payment processing delays
• Centralized financial oversight and reconciliation
• Protection against unauthorized spending beyond funded amounts

The 100 Points to 1 Currency Unit Conversion:

The Redemption Module uses a standardized conversion rate:

• 100 points = $1 USD = £1 GBP = €1 EUR = $1 CAD = 1 unit of any currency
• This universal conversion simplifies calculations across multiple currencies
• Users can redeem points for gift cards in any configured country without complex exchange calculations

Example:

• User has 50,000 points accumulated
• User wants to redeem for a $500 USD Amazon gift card
• Calculation: 50,000 points ÷ 100 = $500 USD equivalent
• User can redeem the full balance for the $500 gift card

Key Funding Metrics

Current Balance:

• Available funds in the Tango Card account to cover gift card costs
• Displayed in USD
• Represents actual money deposited and available for redemptions
• Should equal or exceed Unredeemed Points for smooth fulfillment

Unredeemed Points:

• Total liability of all points that users have accumulated but not yet redeemed
• Represents potential future redemption cost
• Calculated as: (Total User Points ÷ 100) = USD liability
• Helps forecast funding needs and budget planning

The Balance Gap:

• Difference between Current Balance and Unredeemed Points
• Positive gap = Adequate funding exists
• Negative gap = Insufficient funding to cover all potential redemptions
• Zero gap = Exactly enough funding, but no buffer for spikes

Recommended Buffer:

• Maintain Current Balance at 120-130% of Unredeemed Points
• The 20-30% buffer accommodates:
  • Unexpected redemption spikes during promotions
  • Multiple large redemptions occurring simultaneously
  • Processing time for adding new funding (up to 24 hours)
  • Transaction fees (3.5% on each redemption)

Funding Management Strategies

Initial Funding

Calculating Initial Funding Amount:

When first enabling the Redemption Module, determine initial funding based on:

1. Current Unredeemed Points: Check total points users have accumulated
2. Anticipated Redemption Rate: Estimate what percentage will redeem immediately (typically 20-40%)
3. Buffer Percentage: Add 20-30% above calculated need
4. Transaction Fees: Factor in 3.5% Tango Card fee

Example Calculation:

• Total Unredeemed Points: 1,000,000 points
• USD Equivalent: 1,000,000 ÷ 100 = $10,000
• Expected Immediate Redemption (30%): $10,000 × 30% = $3,000
• Buffer (25%): $3,000 × 1.25 = $3,750
• Transaction Fees (3.5%): $3,750 × 1.035 = $3,881.25
• Recommended Initial Funding: $4,000

Initial Funding Best Practices:

• Start conservatively and add more funding as redemption patterns emerge
• Monitor redemption activity intensely during first 2-4 weeks
• Add supplemental funding quickly if initial amount proves insufficient
• Document redemption rates during launch for future program planning

Ongoing Funding Management

Regular Monitoring Schedule:

Establish consistent monitoring cadence based on redemption volume:

• High Volume Programs (100+ redemptions/month): Daily monitoring
• Medium Volume Programs (25-100 redemptions/month): Every 2-3 days
• Low Volume Programs (<25 redemptions/month): Weekly monitoring

What to Monitor:

• Current Balance vs. Unredeemed Points comparison
• Recent redemption trends (increasing, stable, decreasing)
• Funding History showing successful and failed transactions
• Low Funding Reminder notifications
• Upcoming events or promotions that may spike redemptions

Proactive Funding Triggers:

Add funding when any of these conditions occur:

• Current Balance drops below 120% of Unredeemed Points
• Low Funding Reminder notification is received
• Major promotion or program milestone is approaching
• Redemption velocity increases significantly week-over-week
• Credit card is approaching expiration and replacement is needed

Funding Schedules

Scheduled Funding Approach:

Rather than reactive funding, establish predictable schedules:

Weekly Funding:

• Appropriate for high-volume programs with rapid point accumulation
• Add consistent amounts every Monday or first business day
• Reduces administrative burden with regular routine
• Maintains stable balance through high activity

Bi-Weekly Funding:

• Suitable for medium-volume programs with steady redemption patterns
• Aligns with common payroll schedules for budget allocation
• Balances administrative efficiency with adequate monitoring
• Add funding every other Friday for weekend redemption coverage

Monthly Funding:

• Works for low-volume programs with predictable redemption rates
• Coordinate with monthly financial close processes
• Add funding at month-end or month-start based on preference
• Requires higher individual funding amounts to cover full month

Event-Based Funding:

• Add funding before major promotions, program launches, or milestones
• Calculate expected redemption spike and fund proactively
• Examples: Quarter-end bonuses, annual reward program celebrations, new program launches
• Add 50-100% more than typical funding to accommodate increased activity

Hybrid Approach:

• Combine scheduled base funding with event-based supplemental funding
• Maintains baseline coverage while accommodating predictable spikes
• Most flexible approach for variable redemption patterns

Credit Card Management

Registering and Maintaining Cards

Primary Card Selection:

Choose primary funding cards based on:

• High credit limits to accommodate large funding transactions
• Favorable rewards programs (cashback, points) to offset costs
• Low or no foreign transaction fees if using international cards
• USD denomination to avoid currency conversion fees
• Strong fraud protection and dispute resolution processes

Backup Card Strategy:

Register 2-3 backup cards to ensure uninterrupted funding:

• Use different card issuers (Visa, Mastercard, American Express) to prevent network-wide issues
• Different banks reduce single-institution dependency
• Personal cards for small organizations, business cards for enterprises
• Test backup cards quarterly with small funding transactions to verify functionality

Card Verification Timeline:

New cards undergo verification by Tango Card:

• Typical verification: Within 24 hours of registration
• During verification: Card appears registered but cannot fund
• After verification: Card is fully functional for funding transactions
• If verification exceeds 48 hours: Contact Magentrix support

Verification Delays - Common Causes:

• Incorrect billing address (must match exactly with card issuer)
• Expired or invalid card number
• CVV code entered incorrectly
• Card is not activated or has been reported lost/stolen
• Card issuer blocking merchant or transaction type
• International cards requiring special authorization

Card Maintenance:

Maintain card health through:

• Expiration Monitoring: Track expiration dates and register replacements 30-60 days before expiry
• Periodic Testing: Test each card quarterly with small funding amounts ($50-100)
• Limit Awareness: Know credit limits and ensure adequate availability for large funding needs
• Fraud Alerts: Monitor for fraud alerts that may block legitimate funding transactions
• Statement Review: Reconcile Tango Card charges against Funding History for accuracy

Handling Credit Card Issues

Authorization Failures:

If funding transactions fail authorization:

1. Verify card information is entered correctly (number, expiration, CVV)
2. Confirm sufficient credit is available on the card
3. Check with card issuer for holds or blocks on the merchant
4. Try a smaller funding amount if limit concerns exist
5. Use backup card if primary card issues cannot be resolved quickly
6. Contact card issuer to pre-authorize Tango Card merchant

Expired Cards:

When cards expire:

1. Register replacement card with new expiration date and CVV
2. Wait for verification (typically 24 hours)
3. Test new card with small funding transaction
4. Delete expired card after confirming new card works
5. Update any automated funding processes or documentation

Lost or Stolen Cards:

If cards are compromised:

1. Report to card issuer immediately and request replacement
2. Delete compromised card from Tango Card system
3. Use backup card for immediate funding needs
4. Register replacement card when received
5. Review Funding History for any unauthorized transactions

Transaction Fees and Costs

Understanding Tango Card Fees

Standard Transaction Fee:

• Tango Card charges 3.5% on all transactions
• Fee is calculated on the gift card value, not the funding amount
• Fee is charged when users redeem, not when administrators add funding
• Fee is automatically included in the redemption process

Fee Calculation Examples:

Example 1: Small Redemption

• User redeems 1,000 points for $10 gift card
• Transaction fee: $10 × 3.5% = $0.35
• Total cost: $10.35

Example 2: Large Redemption

• User redeems 50,000 points for $500 gift card
• Transaction fee: $500 × 3.5% = $17.50
• Total cost: $517.50

Example 3: Monthly Volume

• 100 users redeem average $50 each = $5,000 total gift cards
• Transaction fees: $5,000 × 3.5% = $175
• Total monthly cost: $5,175

Budgeting for Fees:

When calculating program costs:

1. Estimate total redemption volume per period
2. Multiply by 1.035 to include 3.5% fee
3. Add to overall reward program budget
4. Track actual fees in Funding History for budget reconciliation

Currency Conversion Fees

Using International Credit Cards:

If funding with non-USD credit cards:

• Card issuer charges currency conversion fees (typically 1-3%)
• Dynamic currency conversion may apply with variable rates
• Exchange rates fluctuate, creating unpredictable costs
• Total cost = Gift card value + Tango 3.5% fee + Conversion fees + Exchange rate

Minimizing Conversion Costs:

Strategies to reduce currency fees:

• Use USD-denominated credit cards when possible
• Select cards with low or no foreign transaction fees
• Fund larger amounts less frequently to reduce per-transaction costs
• Monitor exchange rates and fund when rates are favorable
• Consider USD business accounts for funding simplicity

International Card Example:

Scenario: Funding $1,000 with EUR credit card

• Base amount: $1,000 USD
• Tango fee (on redemptions): 3.5% = $35
• Currency conversion (card issuer): 2.5% = $25
• Exchange rate markup: Variable
• Total cost: $1,060+ depending on exchange rate

Gift Card Catalog Management

Strategic Gift Card Selection

Category Diversification:

Offer gift cards across multiple categories to appeal to diverse user preferences:

Retail and Shopping:

• Universal appeal brands: Amazon, Walmart, Target
• Specialty retail: Best Buy (electronics), Home Depot (home improvement)
• Fashion and apparel: Nordstrom, Gap, Nike
• Coverage: 30-40% of catalog

Dining and Food Services:

• Coffee chains: Starbucks, Dunkin'
• Restaurants: Various cuisine types and price points
• Grocery: Major supermarket chains
• Coverage: 20-25% of catalog

Entertainment and Streaming:

• Streaming services: Netflix, Spotify, Hulu
• Gaming: Xbox, PlayStation, Nintendo, Steam
• Movies and events: Theater chains, ticketing services
• Coverage: 15-20% of catalog

Travel and Hospitality:

• Airlines: Major carriers relevant to user locations
• Hotels: Chain hotels and booking services
• Rental cars: National rental companies
• Coverage: 10-15% of catalog

General Purpose Prepaid:

• Visa prepaid cards: Maximum flexibility
• Mastercard prepaid cards: Alternative option
• Highest redemption rates but less brand impact
• Coverage: 10-15% of catalog

User Preference Research

Gathering Feedback:

Methods to understand user gift card preferences:

Pre-Launch Surveys:

• Survey users before configuring redemption
• Ask about preferred categories and specific brands
• Inquire about typical redemption amounts
• Identify country preferences for international users

Ongoing Feedback:

• Add feedback mechanism in redemption interface
• Periodic surveys asking about catalog satisfaction
• Suggest-a-brand feature for requests
• Monitor support inquiries about missing brands

Data-Driven Analysis:

• Review Fulfillment reports for redemption patterns
• Identify most and least popular brands
• Track redemption amounts to inform min/max values
• Analyze redemption timing (seasonal trends)

Focus Groups:

• Conduct small group discussions with active redeemers
• Explore why certain brands appeal or don't appeal
• Test reactions to potential new gift card additions
• Gather qualitative insights beyond quantitative data

Regional Relevance

Country-Specific Considerations:

Different countries require different gift card strategies:

United States:

• Widest brand availability through Tango Card
• Include national retailers, regional favorites, and niche brands
• Offer 20-30 gift card options minimum
• Strong preference for Amazon, Visa prepaid, major retailers

Canada:

• Canadian-specific brands (Tim Hortons, Canadian Tire, Chapters)
• Canadian dollar denominations
• Some US brands available (Starbucks, Amazon)
• Include 10-20 gift card options

United Kingdom:

• UK-specific retailers (Tesco, Sainsbury's, Marks & Spencer)
• British pound denominations
• Some international brands (Amazon UK)
• Include 10-20 gift card options

Other Countries:

• Research locally popular brands and retailers
• Partner with regional users to identify preferences
• Start with 5-10 gift cards and expand based on usage
• Include at least one general-purpose prepaid option if available

Catalog Maintenance

Adding New Gift Cards:

Regular catalog updates keep options fresh:

Monthly Reviews:

• Check Tango Card catalog for new brand additions
• Add 1-3 new brands per month based on user requests
• Announce new additions through email, newsletters, or portal notifications
• Track redemption rates for new additions

Seasonal Additions:

• Holiday-themed gift cards (October-December)
• Back-to-school related cards (July-August)
• Summer travel cards (April-June)
• Special occasion cards (Mother's Day, Father's Day)

Trend Monitoring:

• Add emerging popular brands (new streaming services, trending retailers)
• Include gift cards for viral products or services
• Monitor social media and market trends
• Stay current with user generation preferences (Gen Z, Millennials, Gen X)

Removing Underperforming Gift Cards:

Optimize catalog by removing low-redemption options:

Removal Criteria:

• Zero redemptions in 6-12 months
• Less than 1% of total redemptions
• Brand discontinuation or bankruptcy
• Tango Card removes brand from catalog

Removal Process:

1. Review Fulfillment reports for redemption data
2. Identify gift cards meeting removal criteria
3. Navigate to Gift Cards tab, select country
4. Click Trashcan button next to underperforming gift card
5. Removal does not affect previous redemptions

Removal Best Practices:

• Don't remove too many cards simultaneously (max 2-3 per month)
• Replace removed cards with similar category alternatives
• Communicate removals if users specifically requested the brand
• Document removal rationale for future reference

Monitoring and Reporting

Daily/Weekly Monitoring

Essential Daily Checks (High Volume):

For programs with significant redemption activity:

1. Current Balance vs. Unredeemed Points comparison
2. Any low funding reminder emails received
3. Recent redemption count and amounts
4. Credit card verification status if new cards added

Weekly Review (All Programs):

Comprehensive weekly assessment:

1. Funding History review for successful/failed transactions
2. Fulfillment report analysis for redemption trends
3. Popular gift card identification from redemption data
4. Balance projection for next 1-2 weeks
5. Upcoming events or promotions requiring additional funding

Monthly Analysis

Comprehensive Monthly Report:

Generate monthly reports covering:

Financial Metrics:

• Total funding added during month
• Total redemptions processed
• Transaction fees incurred (3.5% of redemptions)
• Average redemption amount
• Current Balance ending position
• Unredeemed Points liability

Redemption Patterns:

• Number of unique users redeeming
• Top 5 most popular gift cards
• Redemptions by country
• Redemptions by gift card category
• Average time from point earning to redemption

Gift Card Performance:

• Gift cards with zero redemptions (removal candidates)
• New gift cards added and their initial performance
• Seasonal trends or anomalies
• User feedback or requests received

Operational Metrics:

• Email resend requests (indicates delivery issues)
• Support inquiries related to redemption
• Failed funding transactions
• Credit card issues encountered

Budget Reconciliation

Monthly Budget Tracking:

Reconcile redemption program costs:

1. Planned Budget:

   • Budgeted redemption amount
   • Expected transaction fees
   • Projected funding needs

2. Actual Spending:

   • Total funding added (from Funding History)
   • Total redemptions processed (from Fulfillment report)
   • Actual transaction fees
   • Currency conversion fees (if applicable)

3. Variance Analysis:

   • Over/under budget calculation
   • Reasons for significant variances
   • Adjustments for next period

4. Forward Projections:

   • Expected redemptions next month
   • Required funding additions
   • Budget allocation recommendations

Troubleshooting and Problem Resolution

Insufficient Funding Issues

Symptoms:

• Users report redemption requests not being fulfilled
• Gift card emails are delayed or not delivered
• Current Balance is $0 or very low
• Low funding reminder emails received

Resolution:

1. Immediately add funding using registered credit card
2. Communicate with affected users about fulfillment delay
3. Monitor fulfillment to confirm redemptions process after funding
4. Use Resend Email function for any delayed redemptions
5. Implement more aggressive low funding monitoring to prevent recurrence

Prevention:

• Set low funding threshold higher (giving more warning time)
• Establish scheduled funding rather than reactive approach
• Maintain larger buffer above Unredeemed Points
• Add multiple administrators to low funding email list
• Set calendar reminders for funding reviews

Credit Card Problems

Authorization Failures:

When funding transactions fail:

1. Verify card information accuracy
2. Check available credit limit
3. Contact card issuer to ensure no blocks or holds
4. Attempt smaller funding amount
5. Switch to backup card if primary card issues persist
6. Document issue and resolution for future reference

Verification Delays:

If card verification exceeds 24 hours:

1. Verify all card information entered correctly
2. Confirm billing address matches exactly
3. Check that card is activated and valid
4. Wait additional 24 hours (up to 48 hours total)
5. Contact Magentrix support after 48 hours
6. Use backup card for immediate funding needs

Gift Card Delivery Issues

Email Not Received:

Users report not receiving gift card emails:

1. Verify user email address is correct in profile
2. Check spam/junk folders
3. Use Resend Email function in Fulfillment report
4. Verify receipt email template is configured
5. Test email deliverability with alternative address
6. Contact Tango Card support if persistent

Redemption Code Issues:

Users report redemption codes not working:

1. Verify code was entered correctly (distinguish O/0, I/1, etc.)
2. Check gift card brand website for redemption instructions
3. Confirm gift card has not expired
4. Contact Tango Card support with reference number
5. Escalate to Tango Card for replacement if code is invalid

Best Practices Summary

Funding Management:

• Monitor Current Balance vs. Unredeemed Points weekly minimum
• Maintain 20-30% buffer above unredeemed points
• Enable low funding reminders with appropriate thresholds
• Use scheduled funding approach for predictable management
• Register multiple backup credit cards from different issuers

Credit Card Management:

• Use USD business cards to minimize fees
• Test backup cards quarterly
• Monitor expiration dates and replace proactively
• Track credit limits and ensure adequate availability
• Reconcile charges against Funding History monthly

Gift Card Selection:

• Offer 15-30 gift cards per country minimum
• Diversify across categories (retail, dining, entertainment, travel)
• Add universal appeal brands (Amazon, Visa prepaid)
• Include regionally relevant brands for each country
• Survey users for preferences before and after launch

Catalog Maintenance:

• Review Tango Card catalog monthly for new brands
• Add 1-3 new gift cards per month
• Remove zero-redemption cards after 6-12 months
• Announce new additions to encourage redemption
• Track redemption data to inform future selections

Monitoring and Analysis:

• Daily monitoring for high-volume programs
• Weekly reviews for all programs
• Monthly comprehensive reporting
• Budget reconciliation every month
• Document trends and insights for optimization

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