Top Hat Rewards app gives access to merchants

Published in the November 11-24, 2015 issue of Morgan Hill Life

By Staff Report

With the holiday season approaching, Morgan Hill merchants are encouraging residents to think local when they go out to shop for gifts for friends and family. And instead of purchasing gift cards for big chain stores and on-line retailers, many merchants suggest consumers purchase a “Shop Local Gift Card” from Top Hat Rewards redeemable at participating stores, wineries and dining places in the South Valley region.

“BookSmart joined Top Hat Rewards because we believe by rewarding customers and working with other local independent businesses we are stronger and better connected to the community that supports us than we are by ourselves,” said store owner Brad Jones.

Local businesses put at least three times as much money back into the local economy as chain stores do, he said. When customers buy coffee at GVA Cafe or BookSmart, their money goes back to work in the community, he said.

“Have you ever asked Starbucks for a gift certificate to raise money for your club or organization? Do they help put on the 4th of July Parade? No they don’t,” Jones said. “The idea of a Shop Local Gift Card is so great. Do you have somebody on your list and you don’t know what to get them? Give them the gift of supporting local businesses while at the same time getting something great that they really want.”

Top Hat Rewards co-founder Sunil Joshi said that his company is using Morgan Hill and the South Valley region as a test-bed to pilot the buy-local gift card program. The idea came about when he saw that people during the holidays give gifts to other people but often the presents can be a waste of money if it’s not what the recipient really wanted.

Gift cards are the most popular ways to give not just for the holidays but other celebrations such as birthdays and graduations, he said. But often people give gift cards for big-name retailers, by-passing local merchants in a community.

“The temptation for people to give gift cards to Target or Macy’s is the one that actually prevents them from giving gift cards to their local merchants,” he said. “With a Shop Local Gift Card, you’re able to say, ‘Here’s a gift card and you can use it in any of these (local) places.’ You can use it downtown or on the main street. It gives the receiver complete flexibility to do what they want to do. It’s a win-win-win on all possible fronts.”

Shop Local Gift Cards are different than traditional paper or plastic gift cards that small stores usually offer, Joshi said. The card has a scratch-off area on the back of the card which, when removed, reveals a code number. The recipient enters that into a Top Hat Rewards app on their phone.

“As soon as you enter it, that money is uploaded into you mobile wallet — it’s money attached to your phone number and it’s only available to your phone number,” Joshi said. “A consumer needs a phone that is text capable. If it’s a smart phone, that’s ideal and it’s more fun to use. If they don’t have a smart phone, the money is still valid and it can work with participating merchants.”

The Shop Local Gift Card money is “locked in the cloud” of the Internet until it’s used. This is according to California law, he said.

Currently, BookSmart, GVA Cafe, the Candy Parlour and Morgan Hill Cellars offer the Top Hat Rewards system, he said. Other local businesses are invited to participate. (For more information, visit www.netincent.com or email Joshi at [email protected].)

It’s relatively easy for merchants to set up the system, Joshi said. Merchants can use their phone if they’re a small business. Large merchants with multiple employees should get a phone device to be installed near the cash register to take care of gift card transactions, he recommended.