ABAY BANK S.C.

ABAY GIFT CARD PROCEDURE

ABAY BANK S.C. MARCH 2017

Table of Contents

Chapter 1-Introduction-----------------------------------------------

1.1. Preamble
1.2. Definitions
1.3. Objectives
1.4. Scope
1.4.1 Features of AGC

Chapter 2 – Governing Rules

2.1. Duties & Responsibilities of Abay Bank S.C.

2.1.1 Duties & Responsibilities of BORMD

2.1.2 Duties & Responsibilities of ITD

2.1.3 Duties & Responsibilities of BDCD

2.1.4 Duties & Responsibilities of Branches

2.2. Duties & Responsibilities of the selected shop owners

2.3. Duties & Responsibilities of Abay Gift Card Holders

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 ABAY BANK S.C. MARCH 2017

I. INTRODUCTION
1.1. BACKGROUND

Development of new Banking products (Services) is believed to be an

important tool to gain a better competitive advantage and attract more
customers. To this fact banks are introducing various customer attraction
service packages that will strengthen their competitiveness in the industry.

Among such new products and services, gift cards are considered as one of
alternative Banking services that will allow Banks to provide a modern &
easy payment system and enable to avail a wider payment alternative which
can give a chance to be better preferred by customers.

Apart from this, Gift cards will also minimize physical cash movements
playing an important role towards the nationwide effort to create a cashless
business transaction. Such, payment system will also give a better chance to
create a business ties with corporate entities willing to partner for gift cards
payment systems.

This Procedure is therefore prepared to envisage activities that should be

undertaken by branches in preparing and issuing gift cards along with steps
required to be followed during issuing a gift card.

1.2. OBJECTIVES

This Gift Card Procedure has the following major objectives :

a) To effectively implement a gift card payment system across all branches,

b) To show activities and steps that should be followed while issuing gift
cards. 2
c) To clearly define roles and responsibilities of different parties
participating on issuance of gift cards.

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 ABAY BANK S.C. MARCH 2017

1.3. SCOPE

This Gift Card Procedure will be applicable in all branches performing

issuance of Gift Cards relating with: Holidays, Birthdays, Inauguration,
Wedding, Graduation, and other special events.

Activities related to the retail banking services will be administered as per

the retail banking procedure of the bank. Other issues which are not covered
in this procedure shall be governed by all relevant procedures of NBE
directives or the Ethiopian commercial law.

1.4. GOVERNING RULES

This procedure shall be governed by:-

 The Retail Banking Procedures of the bank,
 Relevant directives of the NBE,
 Commercial code of the country and
 Other related laws & procedures of the country that can be applicable
to Gift card issuance.

1.5. DEFINITION OF TERMS

The following words, phrases and concepts have the meaning and definitions
as prescribed herein under:
a) Bank : shall mean Abay Bank S.C.
b) Abay Gift Card (AGC) : refers a pre-designed card having various forms
prepared by Abay Bank S.C. for the purpose of issuing to customers in
relation with events like: Holydays, Birthdays, Graduations etc.
c) Security code : is unique number designated to each Gift Card(AGC).
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d) Negotiated merchant: refers to those selected shopping centres
negotiated and agreed to accept Abay Bank S.C. for transacting different
goods and services as per the choice of the gift card holder(presenter).

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1.6. DUTIES AND RESPONSIBILITIES

1.6.1 DUTIES & RESPONSIBILITIES OF DIRECTOR BORM

BORM will have the following duties and responsibilities in the

implementation of this gift card procedure :

► Follow up the proper implementation of the this procedure and other

relevant NBE directives,
► Undertake onsite and offsite supervision on branches, discussing
issues which affect the implementation of AGC and on the possible
solution of the observed problem.

► Follow-up up of the overall effectiveness of the system make

amendments the procedure as required.

1.6.2 DUTIES & RESPONSIBILITIES OF DIRECTOR IT

► Avail a system infrastructure that will assist in preparing a gift card

as per the predesigned format and requirements there on.

1.6.3 DUTIES & RESPONSIBILITIES OF DIRECTOR BUSINESS

DEVELOPMENT
► Prepare un appealing Abay Gift Card design with various purposes.

► Undertake survey, collect opinion (data) about any and perform

improvements based on feed backs from customers, merchants etc.
► Shall promote the product using effective ways & channels
1.6.4 DUTIES & RESPONSIBILITIES OF BRANCH MANAGERS
► Shall conduct due diligence assessment of customers,
► Implement this procedure in conjunction with other rules & 4
regulations of the Bank, the retail banking procedure and Relevant
NBE directives,

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 ABAY BANK S.C. MARCH 2017

2 GIFT CARDS
2.6 GENERAL

Globally, a gift card which is also in some countries called a gift certificate or
a gift voucher is a payment instrument issued by Banks as an alternative
means of payment other than cash for the purpose of purchases in a
particular store or related businesses.

They are also sometimes given out by retailers and marketers as part of a
promotion strategy and attract the recipient to come in or return to the store,
however in such circumstances the cards are called cash cards. They are
generally valid only for purchases at the relevant retail premises and cannot
be cashed out, and in some situations may be subject to an expiry date or
fees.

Gift cards can be given provided during: holydays, anniversary, birthday,

graduation, Jubilees, Good Wishes days & New Year etc.

2.7 TYPES OF GIFT CARD

Gift cards can be prepared either in the form of a generic electronic card or
a predesigned certificate with some security futures and can be marked
depending on the purpose they are intended for.
► A generic gift cards which need not be cashed-in at particular stores,
are widely used for cash back marketing strategies. Such cards are
disposed of when the stored value on a card is exhausted. Sometimes the
validity of the card ranges from 1 3 years from the date of issue and the
expiry date is printed on the face of the card.
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It is usable at all electronic card enabled Merchant Establishments and
POS where there is such special agreement. Some time times it is not
restricted to any particular Merchant Establishment/ Point of Sale.

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 ABAY BANK S.C. MARCH 2017

► Whereas a gift card prepared in the form of security featured

certificates, are given in place goods that can be purchased from a
particular shopping centre or merchandise store.

Such certificate can be given as a gift on some occasions or events of

celebration by a friend, relative or loved ones where giving cash may be
regarded as socially inappropriate rather the gift may appear as a surprise
and exciting present.

2.8 BENEFITS OF GIFT CARDS

The following benefits are presumed from gift cards:

► FLEXIBILITY: Recipients can use the Gift Card at a wide variety of

locations which have agreed to accept such cards, including restaurants
and entertainment venues etc.

► CONVENIENCE: Recipients can choose where they want to use the card.
Person who is giving gift doesn't have to go from store to store looking for
the right gift.

► FREEDOM OF CHOICE : Recipients of a gift card will have a chance of to

chose from options for the a gift intended by someone’s. They can use the
gift card for shopping, dining, online transactions from stores and/or

► SECURITY: A Gift Card eliminates worries of losing like cheque or cash.

► SAVINGS FOR THE RECIPIENT - Card holder may be offered a

discounts on shopping, dining, fashion and travel.

► A CHOICE FOR DISTANCE GIFT - Gift Card can be directly sent to the
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intended recipient by a customer.

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ABAY BANK S.C. MARCH 2017

2.9 ABAY BANK GIFT CARD

2.9.1 TYPE

The type gift card adapted by Abay Bank S.C. is a predesigned

certificate type with some security futures which is prepared from
high quality format with a standard size in anticipation to be used by
both registered and unregistered customers. The card is designated as
Abay Gift Card (AGC).

2.9.2 FEATURES OF ABAY GIFT CARD

Abay gift card will have the following features and contents:

 No restriction on age, sex and religion to use a Abay Gift Card,

 The card will contain bank name with logo & issuer branch,

 Will have a security code,

 Name of Abay Gift Card (ACG) provider,

 Name of Abay Gift Card (AG recipient

 Description of the event (birthday, graduation, weeding, mother’s

day, holydays, reward and etc.

 Amount of the money,

 Expiry date,

 Shall have the signatures of the manager & the accountant of the
respective branch,

 Shall be prepared by Amharic & English languages, 7

 Other important features shall be added, if believed to do so

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ABAY BANK S.C. MARCH 2017

3 ABAY GIFT CARD OPERATION

3.6 ABAY GIFT CARD ISSUANCE

Abay Gift card (ACG) is issued up on a request by a customer. However,

marketing of the availability of the product shall be made both by those
performers at front and branch managers while dealing with customer in
every banking relationship. Such occasion include opening of accounts,
remittance payment and during provision of other Banking services.

3.7 GENERAL PROCEDURE

When a customer appears for issuance of a gift card,

 The person in charge shall explain the type use of the Abay Gift Card
(ACG) to the customer along with its benefits,
 The customer will fill or write an application for the preparation of Abay
Gift Card (ACG) guiding him/her to provide all the required information,
 The person in charge will prepare the gift card using the already available
predesigned certificate with the specific purpose and get approved,
signed and sealed by the Bank official stamp.
 Deliver the gift card to the customer against the signature of the
customer on copy of the gift card retained by the Bank with an advise on
future use of the gift card.

 After issuing the gift card, the disposition and utilization of the gift card
shall be followed looking in to the date appearing on copy of the gift card
retain by the issuing branch.

 Periodic review of all gift cards issued by the Bank shall be made in order
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to see the status and utilization of the gift card.

 Any lost gift card shall be reported like any payment instrument.

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ABAY BANK S.C. MARCH 2017

 The AGC holder can open a saving account ( if he/she wish), by fulfilling
criteria set in the retail banking procedure

 The AGC holder can open saving account either with all the money
shown in the AGC or by any amount he/she prefers. If the AGC holder’s
preference is to open a saving amount by deducting some amount from
the money shown on the AGC, then the branch should allow the
customer to get physical cash of the remaining money

 It the AGC holder’s preference is to get physical cash from the accounts
of the person who provided the AGC, then the branch should serve in
line with his/her request

 The AGC holder has the right to take all the money shown in the card or
any amount he/she needs at a time.

Abay Gift Card holder :

 The AGCH needs to present identification card, passport, driving license,

while appearing to get services.

 Services are limited only in the bank’s branches & within the shops
agreed with the bank to do such business.

 If the AGCH needs to open a saving account, he/she should fulfil criteria
set in the retail banking procedure.

 If the AGCH loses the AGC in any reason, he/she shall apply
immediately to the police office & the bank too.

 The bank shall not take any responsibility for the loss of the AGC

 The recipient of AGC shall not claim cash or goods after six months since 9
issued by the AGC provider

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 ABAY BANK S.C. MARCH 2017

 The AGC is not valid, unless signed by the bank’s authorities( Branch
Manager & Accountant)

3.8 ISSUING ABAY GIFT CARD

The Supervisor

a) Interviews the customer and guides him/her to fill out the

application form and produce a valid ID card if the
applicant has no account with the Branch.

b) Deals with the customer to set the amount of money to be

prepared in the Gift Card,

c) Requests the customer to fill out the application form and

to sign the contract designed for the purpose;

d) Checks and authorize the format; prepares the gift card,

necessary tickets with advices and co-signs with the
designated signatory on the gift card;

e) Requests the customer to sign on the registered copy,

confirming receipt of the gift card;

f) Gives acknowledgement to the customer and forwards to

her or him the gift card and the advice;

g) Keeps custody of the application form, the registered copy

and the debit or the credit advice in a separate mandate
file; and gift cards must be balanced against the general
ledger position every month.
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ABAY BANK S.C. MARCH 2017

The Client Relations Officer

a) Makes sure, whether the gift card is prepared on cash or

through the debit of the applicant’s account, then signs and
forwards same to the supervisor;
b) Post the transaction in to the system;
c) Forwards the application form registers a copy there of and
debits advice to the supervisor.

The Branch Controller

 Checks the name, the amount appearing on the gift card,

the maturity date and the signature on the contract
against the system.

3.9 TERMS & TARIFFS

Terms & tariffs shall be applied as per the study conducted by the BDCD.
Hence, --------------------------------------------------------------------------

3.10 REVISION OF THE PROCEDURE

This procedure will be revised every three years. However, it shall

be revised as and when deemed necessary,

3.11 EFFECTIVE DATE

This procedure shall come in to force f rom the date of approval by

the President of the Bank as indicated below :
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Date Of Approval : _____________________________________
President Signature: ____________________________________

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