RXDecision brief

Compare customer flexibility with merchant recapture

Open-loop and closed-loop reward cards create different balances between recipient choice, merchant retention, acceptance clarity, and operating complexity.

01

What this choice changes

Open-loop structures may offer wider potential use, subject to program terms. Closed-loop structures focus value on a merchant or defined network. Compare the models using the desired customer behavior and a transparent view of restrictions, economics, support, and legal responsibilities.

02

Questions for the Shopify program team

Resolve these questions against the actual offer, customer journey, and operating model before comparing providers.

  • Is flexibility or a future merchant purchase the primary objective?
  • How will restrictions affect perceived reward value?
  • Which model creates the clearer customer explanation?
  • How do accounting and support obligations differ?
03

Evidence to collect

Ask for evidence that can be reviewed by commercial, operations, support, security, and legal stakeholders.

  • Acceptance and restriction comparison
  • Recipient research or prior campaign evidence
  • Complete fee and liability model
  • Sample terms for both options