May 2, 2003

HeroCard-carrying consumers could aid nonprofits, themselves

Managing EditorBOULDER — A loyalty-incentive program designed to bolster business for merchants, donations for nonprofit organizations and a rebate for consumers is expected to be launched later this month in Boulder.

Christian Isquierdo, former director of the Boulder Independent Business Alliance, in association with Minneapolis-based CHC Data Inc. hopes to begin soliciting merchants and nonprofits for the Community HeroCard program by mid-May.

The program relies on merchants to designate a percentage of a sale to the program, which in turn is shared among the card-carrying consumer in the form of a rebate, a nonprofit designated by the consumer, CHC Data and Isquierdo’s organization, which he has yet to name.

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Forty percent goes to the designated nonprofit, minus a 25 cents transaction fee that goes to CHC; 40 percent goes back to the consumer, or cardholder; and 20 percent goes to CHC and Isquierdo’s organization, which signed licensing and branding agreements with CHC. Consumers could double their rebate amount by volunteering at participating nonprofits.

Isquierdo said CHC and his organization would in turn use a portion of the money to promote and market the HeroCard program.

Transactions will be tracked and individual accounts maintained by CHC’s patented debit card technology. Records are kept in a database in Minneapolis.

To participate, merchants must pay a one-time $1,000 fee, which includes the price and installation of a separate card-swiping machine, and then a $500 renewal fee each year. If a merchant needs only to have its existing card-swiping machine recoded, it pays a recoding fee of $45, plus the $500 annual fee.

Nonprofits can participate by paying an annual fee of $750, for which they will receive 100 HeroCards they can either sell or give away, Isquierdo said. The suggested price of a HeroCard is usually $20, he said. Nonprofits, however, do not have to pay the annual fee to benefit from the program, Isquierdo said.

The consumer accrues a cash balance on the card, which can be used like a debit card at participating merchants. Also, a cardholder’s accrued credit can be increased when they volunteer at a participating nonprofit. The nonprofit is responsible for reporting the volunteer’s hours to CHC.

The Community HeroCard program was founded by CHC Data Inc. in 1993. About 45 nonprofits and 45 merchants — a mix of restaurants, coffee shops and specialty retail stores — participate in the card program in Minneapolis where the sign-up fee for a nonprofit is $2,500, according to Patricia Maltz, CHC Data’s chief executive officer.

Annette Rodriguez, organizational resources manager for the nonprofit People Serving People, a homeless shelter in Minneapolis that can accommodate 440 people per night, said the organization joined the program two months ago.

?We knew about the program (HeroCard) for a while, but waited to make sure to see a growth process, and then we got involved,? she said. ?Our board is really impressed with their technology,? she said.

Rodriguez said the organization’s 20,000 volunteers were polled to see if they shopped at participating merchants before signing on. ?We see this as another way to raise dollars,? in a tight economy, she said.

For more information visit www.communityherocard.com/boulder or call (720) 436-2051 after May 15.

Managing EditorBOULDER — A loyalty-incentive program designed to bolster business for merchants, donations for nonprofit organizations and a rebate for consumers is expected to be launched later this month in Boulder.

Christian Isquierdo, former director of the Boulder Independent Business Alliance, in association with Minneapolis-based CHC Data Inc. hopes to begin soliciting merchants and nonprofits for the Community HeroCard program by mid-May.

The program relies on merchants to designate a percentage of a sale to the program, which in turn is shared among the card-carrying consumer in the form of a rebate, a nonprofit designated by the consumer, CHC…

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