Merchantissued

Merchantissued refers to payment instruments, credentials, or value-enabled items that are created and distributed directly by a merchant or retail network rather than by a bank, government, or independent issuer. These instruments are intended to function within the merchant’s own ecosystem, often to facilitate purchases, loyalty, or customer engagement.

Common forms of merchantissued tools include physical or digital gift cards with a stated monetary value, store credit issued after returns or promotions, loyalty cards or points that can be redeemed for goods, and vouchers or coupons that provide discounts or special offers. Digital versions may appear as QR codes, barcode passes, or integrated wallet passes linked to a customer’s account. In some cases, merchants extend credit or financing options that are limited to their own stores, effectively creating a closed-loop payment option.

Key characteristics of merchantissued instruments include value liability held by the issuing merchant, defined terms of redemption, and sometimes restrictions on where and when the instrument can be used. Expiration policies, transferability, and regional regulatory compliance can affect how they are issued, marketed, and redeemed. Because they are not issued by traditional payment networks, they may involve different settlement flows, reconciliation needs, and fraud controls.

Merchants use these tools to drive sales, collect customer data, manage returns, and differentiate brand experiences. For consumers, they offer convenient gifting, rewards, and discounts, but may come with limitations such as in-store-only use or restrictions on combining with other offers.

See also: gift card, store credit, loyalty program, coupon.