Q&A

1. What concerns you most about the cost of joining Canadian Loyalty?

A. The percentage charged on each sale.
There is no membership fee. The contribution percentage depends on your industry.

B. Additional payment processing fees.
Any payment processing fees will be explained separately before you join.

C. Whether additional sales will cover my costs.
We can illustrate how much additional business would be needed to cover your participation costs, based on your margins. This is an example, not a guarantee of increased sales.

D. I have no major concerns about cost.
We’ll explain the percentage for your industry before you decide whether to join.

2. What concerns you about whether Canadian Loyalty would help your business make more profit?

A. My profit margins are already small.
Additional sales must generate enough profit to cover participation costs. Your margins need to be considered before deciding whether the program suits your business.

B. Most of my customers already shop with me.
Existing customers would earn points too, adding another reason to return. The program introduces your business to customers shopping at other participating businesses with much more frequency.

C. I don’t expect enough additional sales.
You pay a small percentage only when a sale is made, inside the program. Outside the program there is no extra cost to be applied. With added reasons for existing customers to return, a bigger audience for your website, with extra possible sales promotions and creativity, you  should expect to do much better.

D. I believe it could improve profitability.
Customers can discover your business through the network and earn rewards that encourage them to return. Your actual profit depends on the additional business generated and your costs. Loyalty programs generally increase business from ten to ninety percent depending on industry and individual business.

3. What information do you need before deciding whether to join?

A. What participation would cost my business.
We’ll explain your industry’s contribution percentage and any payment processing fees before you decide.

B. How much additional business I would need.
We can prepare an example using your margins and participation costs to illustrate the additional sales needed to cover those costs.

C. How the network would attract customers.
Customers can earn points at one participating business and redeem them at another. The network also gives customers a way to discover participating local businesses.

D. All of the above.
You would receive information about costs, an illustrative calculation of the additional business needed, and how the shared rewards network works.

4. What concerns you about leaving the program if it doesn’t work for your business?

A. Being locked into a long-term contract.
The proposed arrangement allows merchants to leave at any time. Final participation terms must confirm this before you join.

B. Having to pay cancellation fees.
Cancellation fees, if any, must be clearly stated before you join. Prepaid points do not, by themselves, establish whether there is a cancellation fee.

C. What happens to customers’ points when I leave.
Customers keep their points and can redeem them at other participating businesses. Points are paid for before issuance, so leaving does not create an unpaid points bill.

D. Nothing, provided I can leave when I choose.
The intention is for merchants to stay because the program benefits their business. Your right to leave must be clearly stated in the participation terms.

5. What concerns you about using Canadian Loyalty with your current payment equipment?

A. Replacing my existing payment or POS system.
The aim is to work with existing equipment wherever technically possible. Compatibility must be checked before you start.

B. Purchasing additional equipment.
The aim is to avoid extra equipment wherever possible. Any required equipment and its cost would need to be explained before you join.

C. Whether I can operate using my cellphone.
Cellphone operation is planned for small merchants. The available functions must be confirmed through development and testing.

D. I have no concerns about equipment.
We would still confirm that your setup can handle the required transactions before activation.

6. What concerns you about accepting points as payment and receiving your money?

A. Whether I receive the full value of redeemed points.
Under the Canadian Loyalty model, one point redeemed equals $1 paid to the accepting merchant.

B. How quickly I receive payment.
The payment schedule must be confirmed with the payment provider and explained before you join.

C. Whether payment happens automatically.
Automatic settlement is planned. It must be tested before merchants rely on it.

D. I have no concerns about receiving payment.
You would still receive clear instructions explaining how redemptions are recorded and when payments arrive.

7. What concerns you about refunds when a customer has already earned or spent points?

A. A customer spending earned points before returning the purchase.
Points earned on the refunded purchase would be reversed. If already spent, that could create a negative customer points balance.

B. Who covers points that have already been redeemed.
The proposed approach uses future earned points to clear the customer’s negative balance. Responsibility for any balance that is never recovered must be settled before launch.

C. How a customer’s negative points balance is cleared.
New points earned would first reduce the negative balance. Once it is cleared, the customer could build a spendable points balance again.

D. How to refund a purchase paid for with points.
The rules must explain how the points-paid portion and any cash or card portion are returned. Those procedures still need to be finalized and tested. The intension is return the the same cash and same points to the customer.

8. What concerns you about customers’ points when a participating business leaves or closes?

A. Customers losing points they earned at that business.
Customers keep their points. Their points remain usable at other participating businesses.

B. Customers having to redeem points before that business closes.
They do not have to redeem their points at the closing business. They can use them elsewhere in the participating network.

C. The departing business owing money or being owed money for points.
Under this model, points are paid for before issuance, and merchants are not to be left owing or being owed money for points. The payment arrangements must support that rule.

D. I have no concerns, provided customers can use their points elsewhere.
That is how the shared network is intended to work: customers can earn at one participating business and redeem at another.

9. What concerns you about joining while the network is still getting started?

A. Not enough participating businesses.
A smaller network offers fewer places to earn and redeem points. Recruiting businesses is part of establishing a useful local network.

B. Not enough customers using the network.
The pilot starts with merchants testing transactions with each other. Public customer participation comes after the system has been tested.

C. Whether the network will grow quickly enough.
The pace of growth is uncertain. Joining early does not guarantee customer numbers or additional sales.

D. I understand that early participation helps establish the network.
Early merchants help test transactions, identify problems and provide feedback before the public launch.

10. What concerns you about using Canadian Loyalty during a power outage or technical problem?

A. Customers missing points earned on purchases.
A procedure is needed to record eligible purchases and award points after service returns. That procedure must be tested.

B. Customers being unable to redeem points.
Redemption must pause if the system cannot verify the customer’s available points balance.

C. Having to keep records or handle receipt claims.
Receipts could support claims for missing points, but verification and duplicate-claim controls must be established before using that approach.

D. I have no major concerns, provided there is a clear backup procedure.
Merchants would need clear instructions explaining what transactions can continue, what must pause and how records are handled after service returns.