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Trade Credit

Trade credit is store credit that customers earn when they trade in books at your store. They can use this credit toward future purchases.

What Is Trade Credit?​

Trade credit is a store-specific currency that:

  • Customers earn by trading in books to your store
  • Can only be used at your store (not transferable)
  • Functions like cash when making purchases
  • Never expires (unless you set a policy)
  • Tracks separately per customer per store
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Trade credit is store-specific. Credit earned at your store can only be spent at your store, not at other BookWish stores.

How Trade Credit Works​

Customer Perspective​

  1. Customer brings books to trade in at your store
  2. You evaluate books and make an offer
  3. Customer accepts trade-in offer
  4. Credit added to customer's account at your store
  5. Customer shops and uses credit toward purchases
  6. Credit balance remains until used

Store Perspective​

  1. Accept trade-in books from customer
  2. Issue trade credit to customer's BookWish account
  3. Track credit balance per customer
  4. Apply credit to future POS sales
  5. Reduce balance when credit is used
  6. Monitor credit issued vs. credit redeemed

Issuing Trade Credit​

Trade-In Process​

When a customer wants to trade in books:

  1. Evaluate Books: Assess condition and demand
  2. Make Offer: Determine credit amount per book
  3. Customer Accepts: Agree on total credit
  4. Create Trade-In: Record transaction in app
  5. Issue Credit: Credit automatically added to customer's account

See Trade-In Management for detailed trade-in procedures.

Credit Amount Guidelines​

Typical trade-in credit values:

  • Like New: 30-40% of retail price
  • Good: 20-30% of retail price
  • Fair: 10-20% of retail price
  • Poor: Usually not accepted

Your store sets its own rates based on:

  • Book condition
  • Demand for that title
  • Your inventory needs
  • Competitive positioning
tip

Be consistent with your credit rates to build trust with customers. Post your trade-in guidelines visibly in store.

Tracking Trade Credit​

Customer Balances​

Each customer has a trade credit balance at your store showing:

  • Current Balance: Available credit amount
  • Total Earned: All-time credit issued
  • Total Spent: All-time credit used
  • Transaction History: Individual credit/debit transactions

Viewing Customer Credit​

To view a customer's credit balance:

  1. Go to Store Management
  2. Tap Customers or Trade Credit
  3. Search for customer by name or email
  4. View their current balance and history
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Customers can view their own balance in the BookWish app under their account section for your store.

Applying Trade Credit to Sales​

During POS Checkout​

When a customer wants to use trade credit:

  1. Add items to cart normally
  2. Tap Complete Sale
  3. Select Payment Method: Choose "Trade Credit"
  4. Enter Customer Account: Search for customer
  5. Apply Credit: System applies available credit to total
  6. Collect Remaining: Customer pays any remaining balance
  7. Complete Sale: Transaction records credit usage

Full Credit Payment​

If customer has enough credit to cover entire purchase:

  • Select Trade Credit payment method
  • Full amount deducted from credit balance
  • No cash/card payment needed
  • Receipt shows credit payment

Partial Credit Payment​

If purchase exceeds credit balance:

  • System applies all available credit
  • Shows remaining balance due
  • Customer pays difference with cash/card
  • Receipt shows both payments

Example:

Cart Total:           $25.00
Trade Credit Applied: $15.00
───────────────────────────
Cash Due:             $10.00

Trade Credit Transactions​

Transaction Types​

Credit (Adds to Balance):

  • Trade-in accepted
  • Promotional credit
  • Refund to credit (instead of original payment)
  • Store credit gift card (future feature)

Debit (Reduces Balance):

  • Purchase at POS using credit
  • Online order using credit (future)
  • Credit expiration (if you set expiration policy)

Transaction Records​

Each transaction records:

  • Date and time
  • Amount (positive for credit, negative for debit)
  • Type (trade-in, purchase, refund, etc.)
  • Reference ID (trade-in ID, sale number, order ID)
  • Notes (optional description)
  • Balance after transaction

Viewing Transaction History​

To view credit transaction history:

  1. Find customer in customer list
  2. Tap on their name
  3. View Trade Credit History
  4. See all credits earned and spent
  5. Filter by date range if needed

Trade Credit Policies​

Setting Your Policy​

Consider establishing policies for:

Credit Value:

  • What percentage of retail you offer
  • Different rates for different conditions
  • Minimum/maximum credit per book

Credit Usage:

  • Can credit be used on any purchase?
  • Can credit be combined with sales/discounts?
  • Any excluded items?

Credit Expiration:

  • Does credit expire? (Consider no expiration)
  • If yes, how long is credit valid?
  • Expiration warnings before losing credit?

Credit Transfers:

  • Can customers transfer credit to others? (Usually no)
  • Can credit be refunded to cash? (Usually no)
Policy Recommendation

Most successful bookstores offer non-expiring trade credit with no restrictions on usage. This builds customer loyalty and repeat visits.

Communicating Policies​

Make policies clear by:

  • In-Store Signage: Post rates and rules
  • Verbal Communication: Explain when accepting trade-ins
  • Receipt Notes: Include balance on trade-in receipts
  • App Display: Policies shown in customer's app
  • Website: Post trade-in program details online

Customer Management​

Regular Trade-In Customers​

For customers who trade in frequently:

  • Track their total credit earned over time
  • Recognize high-value traders
  • Offer incentives for regular trade-ins
  • Build relationships with repeat customers

Customer Communication​

Communicate with trade credit customers about:

  • Current balance
  • Credit earned from recent trade-ins
  • Special offers for credit holders
  • Expiration warnings (if applicable)
  • New inventory they might like

Trade Credit Reporting​

Key Metrics​

Track these trade credit metrics:

Credit Issued:

  • Total credit issued this month/year
  • Average credit per trade-in
  • Number of customers with credit
  • Total outstanding credit balance

Credit Redeemed:

  • Total credit used this month/year
  • Credit redemption rate (% of issued credit used)
  • Average credit used per transaction
  • Time from issue to redemption

Credit Liability:

  • Total outstanding credit owed to customers
  • Trend over time (growing or shrinking)
  • Credit issued vs. redeemed ratio

Financial Tracking​

For bookkeeping purposes:

Assets: Trade-in books received (inventory value) Liabilities: Outstanding credit owed to customers

Track separately:

  • Credit issued (expense)
  • Credit redeemed (reduces liability)
  • Net credit position
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Outstanding trade credit is a liability on your books. Monitor this to ensure it's sustainable for your business.

Troubleshooting​

Customer Can't Find Balance​

If customer says they can't see their credit:

  1. Verify they're logged into BookWish account
  2. Check they're viewing your store's credit (not another store)
  3. Confirm trade-in was completed in system
  4. Check transaction wasn't reversed

Balance Incorrect​

If balance doesn't match expectations:

  1. Review transaction history
  2. Check for unreported uses of credit
  3. Verify all trade-ins were recorded
  4. Look for system errors or adjustments

Credit Not Applying​

If credit won't apply to POS sale:

  1. Verify customer account is selected
  2. Check customer has sufficient balance
  3. Ensure trade credit payment method selected
  4. Check for technical issues with app

Manual Adjustments​

Sometimes you need to manually adjust credit:

Add Credit:

  • Correction for error
  • Promotional credit
  • Goodwill gesture

Remove Credit:

  • Correction for error
  • Fraudulent activity
  • Policy violation

Document all manual adjustments with reason.

Best Practices​

Issuing Credit​

✓ Be consistent with valuations ✓ Communicate value clearly ✓ Process trade-ins promptly ✓ Give receipt showing credit added ✓ Set realistic expectations

Using Credit​

✓ Make it easy to use credit ✓ Remind customers of their balance ✓ Accept credit for any purchase ✓ Process credit transactions smoothly ✓ Show remaining balance after purchase

Managing Credit Program​

✓ Track metrics regularly ✓ Monitor outstanding liability ✓ Adjust rates if needed ✓ Promote trade-in program ✓ Train staff on policies

Customer Service​

✓ Honor promised credit amounts ✓ Resolve disputes fairly ✓ Communicate policy changes ✓ Thank customers for trade-ins ✓ Build loyalty through fair treatment

Advanced Features​

Promotional Credit (Coming Soon)​

Future features may include:

  • Bonus credit days (150% credit value)
  • Credit for referrals
  • Birthday bonus credit
  • Loyalty program integration

Credit Transfers (Coming Soon)​

Possible future features:

  • Gift credit to another customer
  • Credit pooling for groups
  • Credit donations to schools/libraries

Online Credit Usage (Coming Soon)​

Eventually customers may:

  • Use credit for online orders
  • Check balance on store website
  • Receive credit from online trade-ins

Financial Considerations​

Credit Economics​

Benefits:

  • Drives repeat business
  • Lower cost than discounts
  • Builds customer loyalty
  • Increases inventory (traded books)
  • Customer commitment to your store

Costs:

  • Outstanding liability
  • Administrative overhead
  • Risk of non-redemption (unused credit)
  • Value of books received may not equal credit given

Sustainability​

Keep credit program sustainable by:

  • Setting appropriate credit rates
  • Managing inventory from trade-ins
  • Monitoring redemption rates
  • Adjusting policies as needed
  • Balancing generosity with profitability
tip

Aim for a 70-80% redemption rate. Too low means customers aren't engaged; too high might mean rates are too generous.

Gift Card Laws​

Trade credit may be subject to:

  • Unclaimed property laws (dormant credit)
  • Gift card regulations (expiration rules)
  • Escheatment requirements (reporting unused credit)

Consult with an accountant or lawyer for your jurisdiction.

Tax Treatment​

Trade-ins may have tax implications:

  • Credit issued might be taxable when redeemed
  • Books received might affect inventory accounting
  • Consult tax professional for your situation

Next Steps​