Why Visa/Mastercard Gift Cards Are the Best COAM Payout Option
Not all gift cards are created equal. Here is why universal Visa and Mastercard prepaid cards are the clear winner for HB 353 compliant COAM payouts.
Under HB 353, Georgia COAM operators must transition from cash payouts to gift cards or lottery tickets by July 2026. If you have chosen the gift card route—and most operators are—you face another decision: what kind of gift card?
The options range from store-specific gift cards (usable only at a single retailer) to universal prepaid Visa and Mastercard cards (usable virtually anywhere). The difference in player experience, operational simplicity, and compliance is substantial.
The Three Payout Options Compared
Let's look at the three compliant payout methods side by side before diving into why universal cards stand out.
| Factor | Visa/Mastercard Gift Cards | Store-Specific Gift Cards | Georgia Lottery Tickets |
|---|---|---|---|
| Acceptance Locations | Millions worldwide | Single retailer only | N/A (lottery only) |
| Exact-Value Loading | Yes, any amount | Often fixed denominations | Fixed ticket prices |
| Player Satisfaction | High (cash-like flexibility) | Low to moderate | Low (not equivalent to winnings) |
| Inventory Management | Minimal (reloadable cards) | Complex (multiple brands, denominations) | Moderate (physical ticket stock) |
| Online Purchases | Yes | Only at that retailer's website | No |
| Compliance Simplicity | Straightforward (single provider) | Complex (multiple vendor relationships) | Moderate (lottery distribution rules) |
The Universal Acceptance Advantage
The single biggest advantage of Visa and Mastercard prepaid gift cards is where they can be used. These cards are accepted at millions of merchants—in stores, online, at gas stations, restaurants, and virtually anywhere that accepts card payments.
For players, this means their COAM winnings function almost identically to cash. They can buy groceries, fill their gas tank, pay for dinner, or shop online. Compare that to a store-specific card that limits them to a single retailer, or lottery tickets that have no guaranteed return value.
This flexibility directly impacts player satisfaction and retention. Players who feel restricted by their payout options may choose to play at a competing location that offers more useful payouts.
Exact-Value Loading Eliminates Waste
Universal prepaid cards can be loaded with the exact payout amount—whether it is $4.75 or $247.50. There is no rounding, no leftover balance issues, and no need to stock multiple denominations.
Store-specific gift cards often come in fixed denominations ($10, $25, $50). If a player wins $37, you either round down (the player loses value) or round up (you absorb the cost). Neither is ideal. With Visa/Mastercard cards, the exact amount is loaded and the transaction is clean.
No Inventory Headaches
Store-specific gift cards create inventory management challenges. You need to stock cards from multiple retailers, track quantities, reorder when supplies run low, and manage the physical security of card stock. Each brand may have different activation procedures and different vendor relationships.
With universal prepaid cards, you maintain a single type of card. Reloadable cards further simplify this: a player can use the same card repeatedly, with new winnings loaded onto their existing card each time. This dramatically reduces the physical inventory you need to manage.
Better Data and Reporting
HB 353 requires detailed transaction reporting. Universal prepaid card systems typically provide robust digital reporting tools that capture every transaction with timestamps, amounts, and card identifiers. This data flows directly into your compliance reports.
Store-specific cards and lottery tickets often lack the same level of integrated reporting, meaning more manual work to stay compliant with Georgia Lottery Commission requirements.
Player Preference Data
When all payouts flow through a single card system, you gain visibility into payout patterns. You can see average payout sizes, frequency of play, peak payout times, and player return rates. This operational intelligence helps you optimize your machine mix, staffing, and business decisions.
With a fragmented approach (multiple store cards, lottery tickets, and other methods), this data is scattered across systems and difficult to aggregate.
Compliance Is Simpler
Working with a single licensed provider for universal prepaid cards means one contract, one integration, one reporting system, and one point of contact for compliance questions. You are not juggling relationships with multiple gift card vendors, a lottery ticket distributor, and various activation platforms.
This simplicity reduces the chance of compliance gaps. When everything runs through one system, there are fewer places for things to go wrong.
Loop Pay: Your Universal Card Provider
Loop Pay specializes in Visa/Mastercard prepaid gift card payouts for Georgia COAM operators. Exact-value loading, automated reporting, statewide compliance, and dedicated support—all through one platform.
Become a PartnerWhat About the Cost?
Some operators wonder whether universal prepaid cards cost more than alternatives. The per-transaction fees for Visa/Mastercard cards are competitive, and when you factor in the reduced inventory management, simplified compliance, and better player retention, the total cost of ownership often favors universal cards.
Additionally, many providers—including Loop Pay—offer zero setup costs for qualified locations, making the initial transition affordable.
The Bottom Line
Not all HB 353 compliant payout methods deliver the same results. Universal Visa and Mastercard prepaid gift cards offer the broadest acceptance, the most flexibility for players, the simplest inventory and compliance management, and the richest data for your operation.
For the vast majority of Georgia COAM operators, they are the clear best choice.
Switch to Visa/Mastercard Payouts with Loop Pay
Loop Pay makes HB 353 compliance straightforward with universal Visa/Mastercard gift card payouts. Zero setup costs for qualified locations, automated reporting, and full compliance support.