Network – The foundation on which all payment card types are designed. Simply put, this defines who can participate as a vendor, and where users can utilize their card
Card – A catch-all term for payment option. This can refer to a physical plastic card that is used in person, a digital code that can be transferred electronically, or even a hand-written gift certificate from a mom-and-pop store.
CLOSED LOOP
Closed Loop Network – A network comprised of a single business or entity. This could be a single mom and pop store, or a national brand of stores. In a Fence Network, closed loop networks are the “Fence Links” that make up a “Fence“
Closed Loop Card – A payment option that can be utilized within a Closed Loop Network. The card will usually possess the companies logo/name, indicating where it is accepted. A payment option within a Closed Loop Network can also be known as store credit cards, single purpose cards, Gift certificates, and private label cards. Examples of closed loop cards: A Walmart gift card, a Home Depot revolving credit card, or a Outback Steakhouse gift card.
OPEN LOOP
Open Loop Network – A network comprised of businesses whom accept payments through a brand of payment processor. Participation is open to any business whom agrees to the payment processor’s terms and conditions, and is not limited to a specific business type. For example, any business that accepts Visa, is a member of Visa’s Open Loop Network.
Open Loop Card – A general purpose payment card that can be utilized anywhere the payment processing brand accepted. The card usually bears the logo of the card brand or network (which processes the actual transactions), such as Visa, Mastercard, American Express, or Discover. Cards offered through financial institutions often show the name of the issuing bank, or credit union as well. There are very few limitations on what businesses or brands accept Open Loop Cards.
FENCE STRUCTURE
In the simplest terms, A Fence Network, is a grouping of Fences, made up of Fence Links.
Fence Link– An individual, closed loop network, that meets the criteria to be part of a Fence. A Fence Link may be a part of multiple Fences, depending on how the Fence Network is structured. An example using the Industry Gift Voucher application of the Fence Structure- A Restaurant that serves alcohol, would qualify to be a Fence Link within the “Restaurant Fence“, as well as the “Alcohol Fence” which are 2 of 22 identified variables in the Industry Gift Voucher Fence Network.
Fence – A group of Fence Links, which are related to a single variable category within a Fence Network. Example: Regarding the Industry Gift Voucher, The “Restaurant Fence” is comprised of Fence Links who sell or service prepared food products.
Fence Network – A group of “Fences“, whom all meet unifying criteria, defined by at least one specified qualifier, and allowing for multiple, unique variable categories. In any given Fence Network, fences may not overlap 100%. This means, if a “Restaurant Fence” exists, a “Pizzaria Fence” could not be created in the same Fence Network. Using the Industry Gift Voucher Fence Network as an example, the specified qualifier for the Fence Network is “purveyors of items and services that can be given as a gift”, and has 22 variable categories, or Fences identified.
Fence Network Card – A specific purchase payment card, that can only be utilized at Fence Links in a specified variable Fence. In addition to the Industry Gift Voucher, other variations would could include Fence Network Cards that offer a credit line for a specific line of goods, inter-industry commerce solution, reloadable cards, subscription based budgeting tools, and more.
Industry Gift Voucher (IGV) is a specific purchase payment card system, with 22 Fence variations in it’s Fence Network. Each payment card’s use is limited to the Fence variation indicated. For example, a “Restaurant IGV” can only be redeemed at a “Restaurant IGV Fence Link”, and may not be redeemed at a “Sporting Goods IGV Fence Link”