What is a digital stamp card? Punch cards, stamp cards and loyalty cards explained

Ask ten business owners what they call the card used to reward repeat visits and you may get several different answers: stamp card, punch card, customer card, bonus card or loyalty card. They all describe the same basic idea. The customer visits your business, collects a stamp and receives a reward when the card is full. The biggest difference today is where the card is stored, on a piece of cardboard or on the customer's phone.

One idea, many names

The term people use is mostly a matter of habit. Punch card comes from the traditional practice of punching a hole in the card with every purchase. A stamp card follows the same principle but uses an ink stamp instead.

Loyalty card is the broader term and the one we use for Stampioo's digital loyalty cards. A digital stamp card is simply the modern version. Instead of being printed on cardboard, the card is saved as a pass in Apple Wallet or Google Wallet.

• Stamp card or punch card: A card based on repeat visits that receives a stamp or punch with every purchase.
• Bonus card or customer card: Broader terms that may use points instead of rewarding individual visits.
• Customer club: Often based on the same idea but presented as a membership programme.
• Digital loyalty card: Any of the solutions above, stored on the customer's phone instead of printed on paper.

How a digital stamp card works

The digital version removes much of the friction associated with paper cards. Customers do not need to download an app and you do not need to print any cards. The entire process takes only a few seconds:

• The customer scans a QR code at your checkout.
• The loyalty card is saved directly in Apple Wallet or Google Wallet.
• During each visit, staff scan the card and add a stamp.
• When the card is full, the customer redeems the reward and a new card starts automatically.

Why more businesses are replacing paper cards

A card stored on a phone is less likely to be forgotten, lost or destroyed in the washing machine. The biggest difference, however, becomes clear after the stamp has been added. We compare the two formats in our digital vs paper stamp card guide.

A digital loyalty card helps you build your own customer list. You can see who your regular customers are, identify customers who have not returned for a while and reach cardholders with push notifications about offers and news directly on their lock screen, without paying for text messages.

For Swedish businesses, there is another important advantage that paper cards cannot provide. Customer data is stored on European servers and handled in accordance with GDPR.

How much does it cost?

Paper cards may appear to be free, but printing, reprinting and fraud all cost money. A physical stamp is relatively easy to copy and a completed card gives you no information about the customer.

Digital stamp card platforms usually charge a fixed monthly fee instead. Stampioo offers a free 30 day trial with no payment card required. You can launch a loyalty programme, place a QR code at the checkout and see real customers join before paying anything.

Whether you call it a stamp card, punch card or customer club, the goal is the same. If your customers return regularly, a digital loyalty card is a simple way to encourage more repeat visits. It rewards the behaviour you want to see and shows you who your loyal customers are. When you are ready to set one up, our guide to creating a digital loyalty programme walks through every step.