Enhance compliance and flexibility in employee benefit programs
Some employers provide employees with a benefits card that allows the cardholder to make purchases across many different categories—from Apparel and Home Goods to Entertainment and Travel. One employee may choose to spend the benefit on a new set of linen, while another may choose to enjoy a restaurant meal.
These transactions come with a tax benefit in certain markets so employers must track usage carefully. Multi-benefit cards further add to this complexity i.e. a single card offering more than one type of benefit and managed via an app.
With Kipp, employers can pre-define the categories to allow as part of their employee benefit program. For example, if the cardholder wants to buy a book, the Kipp platform can categorize the purchase based on real-time line item (SKU-level) data, and determine if it falls within the allowable categories. This enables you to classify the transaction and map to its relevant benefit, and to set rules about when to decline transactions that don’t meet your policy for that benefit.
Benefits
Enhanced decision-making
Gain real-time insights into individual items purchased, enabling informed authorization and allocation decisions based on specific program rules.
Improved program compliance
Ensure adherence to benefit program guidelines by accurately categorizing purchases at the point of sale.
Greater operational efficiency
Gain valuable insights into purchase activity through detailed transaction data, facilitating program optimization and resource allocation.
Ask kipp
Answers to the most common questions about Kipp
What is Kipp’s value proposition?
Kipp’s value proposition includes real-time collection of SKU-level data from the POS or cashier, classification of line items into predefined categories, transaction matching between merchant and card issuer, and sharing results with the card issuer—all within the authorization process.
What is the impact on the consumer or cardholder?
The transaction is seamless for the consumer/cardholder. The time it takes Kipp to collect and share the data has no significant impact on the authorization time.
How does an issuer integrate with Kipp?
Issuers connect to the Kipp platform via a secure API integration.
Why does an issuer need SKU-level data?
SKU-level data allows issuers to support specific use cases, such as restricted payments on individual line items or categorizing items for different payment methods (e.g., wallet, benefits). Our broader vision is to enable consumers to view their purchase data on any platform of their choice, but in the meantime, this data supports various issuer needs.
What type of data will merchants share with issuers?
Merchants can choose to share user data, behavioral data, transaction data, and SKU-level (Level 3) data based on the individual use case.
Can rules be customized to meet the specific needs of each issuer?
Yes, we offer recommended rules, and rules can be created and adjusted according to each issuer’s specific requests.
How does Kipp ensure compliance with government disbursement program restrictions?
Kipp’s platform verifies and enriches issuer data in real-time, categorizing individual items based on program criteria. This ensures that only eligible items are purchased with government-issued cards, enhancing compliance and preventing unauthorized transactions.
Can Kipp’s solution handle multi-benefit cards, and how?
Yes, Kipp’s solution can manage multi-benefit cards by pre-defining allowable categories for each benefit. It categorizes purchases based on real-time SKU-level data, ensuring transactions align with the specific benefits and rules set by the issuer.
