We see a tremendous loss of revenue from P.O.S. (Point of Sale) companies, regarding the plastic cards their clients are using for their software systems. Sometimes, the POS companies aren’t aware of how the plastic card industry abuses and steals this potential revenue from them. We are going to expound on what our portion of the industry looks like, with complete transparency, in an effort to help show how dedicated we are to providing the best product, prices, and service.

How Do Point of Sale Companies Profit From Gift Cards, Loyalty Cards, etc?

As a POS company, you hold all of the cards, whether you realize it or not. You have already established a working relationship with your clients, built value in your product, and established trust and loyalty. Every plastic card printer is aware of the opportunity they have to steal your revenue, by simply buying a gift card from a local customer of the parent POS company, and swiping the card to gain access to their encoding requirements. Sometimes, it’s as easy as figuring out which bar code system you are using, or even through a simple swipe through a card reader. By asking the POS user a few simple questions, the plastic card printer has access to every detail they need.

A point of sale company who is looking to establish a revenue stream, will generally set up a relationship with a card printer, which establishes a referral fee, in return for sending their clients to them specifically. This can be extremely lucrative for the POS company. Let’s do some simple math on what this “could” look like, using LightSpeed POS as the example POS company:

LightSpeed has 50,000 clients using their software. If we assume there is only a $70 referral fee for each customer, which is extremely low, here is how the math works out:

50,000 referred customers


X $70


=$3,500,000 in referral fees

This is assuming that each customer ONLY orders once per year. Most customers will order 2-5 times over the course of a year, for various promotions. If we assume that each customer orders twice in a year, LightSpeed would profit $7,000,000 from their referrals, if their referral fee were only $70 per referral.

Point of Sale Companies Have The Leverage of Establishing End User Costs

Let’s assume for a moment, that a POS company wants to keep costs for their customers inline with retail costs for our industry. A standard 500 card order of gift cards retails at bestplasticcards.com for $350. Our competitors charge a retail cost of as high as $530, which is $180 more than our retail cost. We aren’t sure how they can justify their high retail prices, as the quality of their products is either near or lower than ours. Besides their high retail costs, the end user is less likely to reorder on a consistent basis, due to the higher end cost. On top of the higher cost, the end user is less likely to continue trust in the relationship with their point of sale company, based on a feeling of being overcharged for their product.

What All Of This Means To You, As The Point of Sale Provider

If you are looking for an additional revenue stream as a POS provider, we provide American made cards, at 66% of the cost of our competitors. At bestplasticcards.com, we pride ourselves in our 100% Quality Guarantee. If we make a mistake, which every printer does occasionally, we will work endlessly to make it right. To be quite honest, we make less printing mistakes than our competitors, which just seems like icing on our proverbial plastic cake.

We would be very grateful for the opportunity to talk more with you about this article, and the opportunities it can provide to you as a point of sale provider. Please reach out to us via phone (877) 350-8334, or email sales@bestplasticcards.com. Making a commitment to trusting us by reaching out, we will be completely respectful of your time and information.