How do electronic loyalty cards work?

Answer 1

most cards carry the balance information on the card. The company that administers the program charges a transaction fee, as well as selling you the cards.

Answer 2

electronic loyalty cards are nothing but another name for smart cards.

Smart cards are defined according to
1) How the card data is read and written. i.e contact /contactless.

2) The type of chip implanted within the card and its capabilities.i.e Straight Memory Cards / Protected or Segmented Memory Cards / Stored Value Memory Cards /CPU MPU Microprocessor Multifunction Cards

if you have any more questions about loyalty programs please email me.