What is a key feature of gift card and loyalty programs?

A key feature of gift card and loyalty programs is their ability to replace traditional paper gift certificates. This transition to digital or electronic formats has made gift cards and loyalty programs more convenient and versatile for both consumers and businesses. Unlike paper gift certificates, which can be easily lost or damaged, gift cards are often reloadable, have expiration dates, and can be used for in-store purchases as well as online transactions. These features enhance the customer experience and provide retailers with better tracking and management of customer loyalty.

The other options focus on limitations that do not accurately represent the advancements and flexibility of modern gift card and loyalty systems. For instance, they are not solely limited to in-store purchases, as many can also be used online. Additionally, they do not require a physical cash register specifically, since transactions can often be processed through various digital platforms. Lastly, while gift cards are not cash, they still have significant purchasing power that can be utilized in various transactional contexts, making them more than just a substitute for cash.