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SVM (company)
Encyclopedia
SVM LP began as Stored Value Marketing in 1997. SVM is based in the Des Plaines, Illinois
and is a provider of gasoline
, restaurant
, and other retail
gift cards (also known as stored value cards). SVM sells gift cards both to businesses and to consumers
, and provides other related services to its clients. SVM is a privately held company and is considered a pioneer in the marketing of stored value products (gift cards).
. While at Mobil Oil, Reavis was instrumental with the introduction of one of the earliest-known prepaid “gasoline gift cards,” then called the Mobil GO Card. When SVM first opened, the company only provided gasoline gift cards and had two employees.
In 1998, the company expanded its product offerings with the first non-gasoline gift card product. In the same year, the company expanded it service by adding production
, inventory management and fulfillment
services. Also that year, Paul Eno joined SVM and created all internet-based card ordering and fulfillment systems. In 1999, SVM hosted its first client internet
landing page
.
In 2001, SVM began issuing gift cards in an outsourced
environment. In 2004 SVM deploys a web-based card reloading system on behalf of a major oil company that enables consumers to reload gasoline gift cards instantly online. In 2005, SVM establishes a relationship with American Express
Incentive Services and becomes a reseller of the American Express-branded Fill It Up Card (prepaid
gasoline card). By 2008, SVM hosts 21 client internet
landing pages and SVM customizes a multi-use gift card
.
products include a full range of major gasoline
brands. SVM’s product line also includes gift cards for fast food
and casual dining
restaurants, retail, travel, and specialty retailers.
SVM’s role in the issuance of gift cards is in two main ways:
In some cases, SVM is the third-party issuer. In this situation SVM contracts with the processor who holds a database
of all card numbers, and SVM holds the funds until cards are redeemed. SVM then settles
with the retail companies.
In other cases, SVM does the same functions as in the first example except that SVM does not hold the funds. Gift cards are resold through an agreement
with the retail company. Cards in this scenario may be sold either in a retail store environment, or may be sold directly business to business.
SVM’s additional services include card program production, fulfillment of cards (to both retail outlets and customers who purchase the cards), and inventory management services. SVM also provides customer service and Internet hosting services.
SVM has a “sister company,” SFS (SVM Fulfillment Services), that provides fulfillment of gift cards to actual retail locations. This company was established in 2005.
Des Plaines, Illinois
Des Plaines is a city in Cook County, Illinois, United States. It has adopted the official nickname of "City of Destiny." As of the 2000 census, the city had a total population of 58,720. It is a suburb of Chicago, and is next to O'Hare International Airport...
and is a provider of gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
, and other retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
gift cards (also known as stored value cards). SVM sells gift cards both to businesses and to consumers
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
, and provides other related services to its clients. SVM is a privately held company and is considered a pioneer in the marketing of stored value products (gift cards).
Corporate history
SVM was founded in 1997 by Marshall Reavis, a former employee at Mobil Oil CorporationMobil
Mobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
. While at Mobil Oil, Reavis was instrumental with the introduction of one of the earliest-known prepaid “gasoline gift cards,” then called the Mobil GO Card. When SVM first opened, the company only provided gasoline gift cards and had two employees.
In 1998, the company expanded its product offerings with the first non-gasoline gift card product. In the same year, the company expanded it service by adding production
Production, costs, and pricing
The following outline is provided as an overview of and topical guide to industrial organization:Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions...
, inventory management and fulfillment
Fulfillment house
A fulfillment house is a company specializing in product fulfillment services, on behalf of the product owner.- Fulfillment house overview :...
services. Also that year, Paul Eno joined SVM and created all internet-based card ordering and fulfillment systems. In 1999, SVM hosted its first client internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
landing page
Landing page
In online marketing a landing page, sometimes known as a lead capture page, is a single web page that appears in response to clicking on an advertisement...
.
In 2001, SVM began issuing gift cards in an outsourced
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
environment. In 2004 SVM deploys a web-based card reloading system on behalf of a major oil company that enables consumers to reload gasoline gift cards instantly online. In 2005, SVM establishes a relationship with American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
Incentive Services and becomes a reseller of the American Express-branded Fill It Up Card (prepaid
Stored-value card
A stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card...
gasoline card). By 2008, SVM hosts 21 client internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
landing pages and SVM customizes a multi-use gift card
Gift card
A gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
.
Products and services
SVM’s gift cardGift card
A gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
products include a full range of major gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
brands. SVM’s product line also includes gift cards for fast food
Fast food
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a...
and casual dining
Casual dining
This is a list of casual dining restaurant chains around the world, arranged in alphabetical order. A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere...
restaurants, retail, travel, and specialty retailers.
SVM’s role in the issuance of gift cards is in two main ways:
In some cases, SVM is the third-party issuer. In this situation SVM contracts with the processor who holds a database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
of all card numbers, and SVM holds the funds until cards are redeemed. SVM then settles
Settlement (finance)
Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades....
with the retail companies.
In other cases, SVM does the same functions as in the first example except that SVM does not hold the funds. Gift cards are resold through an agreement
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
with the retail company. Cards in this scenario may be sold either in a retail store environment, or may be sold directly business to business.
SVM’s additional services include card program production, fulfillment of cards (to both retail outlets and customers who purchase the cards), and inventory management services. SVM also provides customer service and Internet hosting services.
SVM has a “sister company,” SFS (SVM Fulfillment Services), that provides fulfillment of gift cards to actual retail locations. This company was established in 2005.