Cardholders earn up to 1 point per $1.00 spent on the card at participating local businesses. To fund the value of those points, each Local First Card transaction you process includes a 0.50% deduction (i.e., 50 cents per $100) that is deposited into a reserve account. As a merchant, you publish one or more rewards in the Rewards Marketplace, and you choose the point value of your reward. When a cardholder purchases your reward with his/her points, you receive the value of those points as cash, which is returned to you from the reserve account.
With the Local First Card, you are now in control. You can publish rewards with point values that cover your Cost of Goods Sold, and cardholder redemptions return the transaction reward point deductions to you.