Coupon Guidelines Committee
Industry Glossary Update
March, 2012
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ACP - Association of Coupon Professionals, www.couponpros.org. Members include consumer
packaged goods manufacturers, retailers, processors, distributors and other companies that
support retailers or manufacturers.
Agent – see Manufacturer Agent
Bar Code –often seen as a single word, barcode) is the small image of lines (bars) and spaces
that is affixed to retail store items, identification cards, and postal mail to identify a particular
product number, person, or location.
Barcode Reader – used to read the barcode with a laser beam that is sensitive to the reflections
from the line and the thickness of and variance of space.
Barcode Scanning from mobile device – Mobile devices with cameras and proper software/
applications are being used to capture information from 1D and 2D barcodes, as well as
through picture recognition in order to launch an interaction on the mobile device.
Barcode Strobing – Technology that utilizes an LED or Infrared light source to strobe or
“pulse” data into a laser scanner at point of sale (POS).
Best Food Day (BFD) – The day of the week that most food stores in a particular market run
their newspaper ads – usually Wednesdays or Thursdays.
Billing Period – The time period represented by a coupon invoice submitted by a retailer or
processor for reimbursement.
Billing Service – A company that receives coupons from retailers and that performs the sort-andcount process only; allowing the retailer responsibility for its own receivables. Also, this is
a type of service offered by a Retail Clearinghouse (RCH.)
Bluetooth® – A short range (less than 30 feet) wireless technology used to link various wireless
devices (such as mobile handsets and wireless headphones) and/or to transmit and receive
data.
Bonus Couponing – The practice by the retailer to double or triple the face value of a coupon
which is paid for by the retailer. AKA: Double couponing
Bounceback Coupon –A consumer requested coupon issued as a rebate reward when the
consumer completes the purchase requirements.
Cashier ID – A reference code identifying the retail cashier who processed a coupon transaction
at POS (Point of Sale).
Cents-Off-Coupon – A coupon offering consumers a specified amount off the price of a
particular item at the time of purchase.
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Chargeback / Adjustments – Notification by a manufacturer or manufacturer’s agent to a
retailer and/or clearinghouse that coupons submitted by the retailer have been denied
payment and that the retailer/clearinghouse is being billed back for the coupons’ face value,
plus handling. See Reason Codes
Circulation – “Potential impression.” The maximum number of coupon offers made available to
consumers.
Clearinghouse – Processes and keeps track of coupon redemptions on behalf of the retailer and
forwards to the manufacturer or its agent, either physically or electronically. See Retail
Clearinghouse (RCH)
Click-to-Call – With some mobile handsets, and using the proper protocols, a phone number that
is displayed in a text message or on a mobile Web page that can be selected by a button on
the handset, instantly dialing the number.
Common Short Code (CSC)/Short Codes – A five or six digit numeric code that has the ability
to receive a text message and generate an automated response back to a mobile handset.
Company Prefix (GS1) – Manufacturer Identification Number used in GS1 Databar to identify
company.
Consolidated Store Tag – Summarization of multiple store tag amounts for one retailer, for one
manufacturer within a clearinghouse invoice.
Consumer-redeemed – Coupons submitted by consumers when purchasing a couponed item.
Co-op – Cooperative – A term describing coupons that appear with other coupons from the same
or different manufacturers. Example: FSI (free-standing-insert)
Coupon – A certificate with a stated value (in money or merchandise) that the customer presents
to the cashier in a store that entitles the customer to a specified savings on a specified item or
to a free product at the time of purchase. See Cents-off-Coupon
Coupon “Drop” – The distribution of a coupon by a manufacturer at a specific time, through
one or more media.
Coupon Information Corporation (CIC) – www.couponinformationcenter.com. Is an
organization for manufacturers and provides resources to prevent Coupon fraud.
Coupon Mix – A variety of coupons from different media and for different products submitted
by a store in a single, common submission.
Coupon Offer Code – A six-digit code that is used to track redemption of an offer or promotion.
This code is printed on the coupon and resides in the GS1 DataBar Code.
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Cross Coupon – (AKA cross-ruff coupon.) A manufacturer coupon that is placed inside a
product or printed on the package and is redeemable on the purchase of a different product.
Coupon stacking and arbitration –
Stacking is the process of applying multiple coupons/discounts to an item purchased.
Arbitration is the process of determining which of multiple applicable coupons/discount to
apply.
Stacking and arbitration go hand-in-hand. In some instances both processes come into play
for the same item purchase (i.e.: when the consumer has more coupons available in the
transaction than the item’s purchase price. In this case, which coupons to stack.) Both of
these processes are controlled solely by the retailer and their systems and policies. Stacking
may include a number of discount sources, including TPRs (Temporary Price Reductions),
in-store specials, digital/electronic coupons, and/or paper coupons). Stacking processes may
not be consistent across a retailer’s stores or even match their published policies.
(GS1) DataBar – A bar code symbology that enables a significant amount of data to be
represented in a relatively small space. This symbology was formerly known as Reduced
Space Symbology (RSS). This is the symbology used for printed/paper coupons.
Deduction – Difference between manufacturer invoice and the amount of distributor’s
(wholesaler or retailer) actual remittance. Usually caused by a coupon payment not being
received within the specified time or the total invoice not paid (see chargebacks /
adjustments) (see “Billing Period”)
Digital Coupon (Definition) - A digital coupon traverses the full coupon process (set-up and
communication, discovery, presentation, validation, redemption) without the requirement to
manifest itself as “paper” or in other hard-copy form.
Digital coupons, by definition, can be stored and presented via numerous digital devices.
Examples include: mobile phone, electronic key fob, USB drive, magnetic card, RFID card,
camera, mp3 player, etc. The transmission of digital coupons from one step to another may
occur physically (e.g. swiping of a card, hand entry of a visually presented coupon code),
electronically (e.g. via near-field communication (NFC), Infrared/LED strobing, etc.), or a
combination of these, as well as other implementations.
Digital Coupon Code – The code assigned by the retailer to refer to a particular offer within
their system. This code is unique within the retailer and is what is used at the POS to identify
the offer.
Digital Offer Code – The code used by the manufacturer/brand to identify a particular
promotion. Typically this is the 6 digit code that would reside within the barcode on the paper
coupon. This code is unique within the manufacturer (unique by manufacturer ID), but may
easily be duplicated by other manufacturer within a retailer’s environment.
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Digital Coupon - Preloaded – Description for a method of executing digital coupons at Point of
Sale (POS). Digital coupons are stored in a system that can be referenced directly by the POS
prior to, or during, the validation process. There may be various methods to accomplish this.
Digital Coupon - Self-contained - Description for a method of executing digital coupons at
Point of Sale (POS). With a self-contained digital coupon, the data/code/information
presented by the coupon itself contains the information needed for validating its authenticity.
Much like a paper coupon today, the coupon is validated against the basket of goods
purchased and the discount is applied.
Digital Coupon Publisher (DCP) – also known as Technology Provider - A broad term for
companies that offer advertisers the opportunity/means to distribute promotional offers to
consumers. In this context, the offers are digital coupons.
Direct Submission – Coupons redeemed by a retailer and sent directly to the manufacturers’
redemption address listed in the coupon legal copy.
EAN – European Article Numbering System bar code symbology for global label standards; a
subset of the GTIM family. Should no longer be used on coupons (see GS1 DataBar)
EAN-99 – A 13 digit bar code used for in-store distributed coupons. This bar code is identified
by the number system 99 in the first two digits. The EAN-99 is a superset of the 12 digit
coupon UPC bar code and contains the same data elements. No longer should be used; see
GS1 DataBar.
EDI (Electronic Data Interchange) – The computer-to-computer transmissions of business
information between trading partners in an industry accepted and standard message format –
purchase orders, invoices, etc.
Electronically Dispensed Coupon – Manufacturer coupons given out at retail through thirdparty sponsors via electronic systems, e.g., Catalina Checkout Coupon.
Electronic Funds Transfer (EFT) – The preauthorized transfer of funds electronically via
computer.
Excessive Volume – A submission of coupons that appears to be too large a number for the sales
volume of a particular store, area or coupon drop.
Expiration Date – The last date a consumer may redeem a coupon for a product.
Face Value – The monetary amount of the coupon or the amount subtracted from the product
price to the consumer on coupons redeemed in accordance with the terms.
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Family Code – A three-digit number used to validate a coupon automatically against a specific
product or group of products at the point of sale. A family code is linked to manufacturers’
product codes (GTIN/EAN/UPC).
FIAE – Food Industry Association Executives, www.fiae.net
FMI – Food Marketing Institute, www.fmi.org
“Foreign” Coupons – Invoice with coupons billed to the incorrect address or Mfr. These
invoices and coupons are to be returned. When this occurs Reason Code 14 is used.
Free Coupon – A coupon that entitles the consumer to a product at no cost and that requires the
retailer to fill in the retail price for that product on the coupon.
Frequent Shopper Card/Coupon – also known as “click to card” - Consumer registers their
frequent shopper or credit card information on the retailer’s Web site and selects the desired
coupon offers. The card information and coupon offer selections are passed on to the retailer
and the specific coupon offers are attached to the consumer's card. The discounts are
automatically taken at the point of sale when the consumer purchases the items and uses their
frequent shopper card.
Free-Standing Insert (FSI) – A group of manufacturer’s color advertisements (each of which
usually includes a coupon) printed as a separate section and inserted into a local newspaper,
usually the Sunday edition.
Gang-Cut – Coupons that appear to have been mass cut and submitted for redemption. When
this occurs Reason Code 05 is used.
GMA – Grocery Manufacturers of America, www.gmaonline.org
Grace Period – A recommended period of time beyond the expiration date that manufacturers
allow for coupons to complete redemption process.
Group Promotion – A promotion involving several brands from one or different companies
united by a theme or a mutually shared promotional device.
GS1 (US) – Formerly the Uniform Code Council, www.gs1us.org. This organization is
responsible for issuing and maintaining global standards, formats, and code sets for all types
of bar code symbologies and industry standard message formats (see EDI).
GTIN – Global Trade Identification Number. A term that encompasses all the different formats
of item identifications and cooresponding bar code symbologies that are used for scanning
that include UPC and EAN numbering schemes.
Handling Fee – The amount paid by the issuing manufacturer to the retailer for redemption of a
coupon.
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Handout – Coupons that are distributed in or near the retail store or that are given out door-todoor. At times, the handout coupon, in-store, is accompanied with a sample and can be part
of a product demonstration.
Impression – “page-views.” The number of times the coupon offer is potentially seen by a
consumer on a given page.
Interaction – “Click to view.” When a consumer takes an action to view or see a coupon offer
via the Internet or similar electronic viewing.
Interactive Advertising Bureau (IAB) – An industry association working to evaluate and
recommend standards and practices, as well as field critical research on interactive
advertising.
In-Ad Coupons – Coupons appearing in a retailer’s newspaper ad or handbill that are
redeemable on the specific product only at the particular store or chain. The coupons are
usually issued under a special agreement between the retailer and the manufacturer of the
product.
In-House Processor – A manufacturer who operates its own coupon-redemption center rather
than contracting with an agent.
In-Pack Coupon – A manufacturer coupon enclosed inside a product package for later use by
consumer.
In-Store Coupon – Coupons distributed on store shelves or at the check-stand.
Instant On-Pack – A coupon or a product’s packaging that can be removed at checkout and
used immediately.
Instant-Redeemable Coupon – (IRC) A coupon attached to a package or displayed nearby
that can be removed by shoppers and redeemed at the time the product is purchased. It can
be used during a subsequent shopping trip, as well.
Internet Coupon Register-to-Postal Mail - A consumer visits a manufacturer’s Web site and is
asked to submit their home address, and possibly other information, in order to receive
manufacturer coupons in the mail.
Internet Coupon Online Retailer Coupons - Coupons are either placed on the retailer’s Web
site for printing or delivered to consumers via e-mail.
Internet Coupon Online Promotion Codes - Manufacturer or retailer distributes promotion
codes for consumers to receive a discount online.
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Internet Consumer-Printable Coupons are coupons which can be printed by any online user.
These are primarily store coupons which are redeemed at the point of sale (at the respective
stores).
Internet Print-Controlled Coupons (PCC) are consumer-printable coupons offered in a
“controlled” Web environment, such as the coupon image is not shown on the screen to avoid
possible online manipulation, and the number of prints allowed by the consumer are limited.
Invoice Receipt Date – The date the manufacturer or agent takes possession of the invoice.
JICC – (Joint Industry Coupon Committee) This industry organization is made up of consumer
products manufacturers and retailers and primarily supported by the ACP, GMA & FMI.
Manufacturer Coupon – Issued by a manufacturer offering consumers an amount off the
purchase price of one or more of the manufacturer’s products.
Manufacturer’s Agent – A company hired by a manufacturer to handle coupon redemption and
processing.
Manufacturer’s Processing Service – See Manufacturer’s Agent.
Manufacturer’s Representative – A sales representative of a manufacturer, who may be either
a salaried employee or a broker acting as an agent for several manufacturers on commission.
Maquiladora – Any company in Mexico that provides services to U.S. companies.
Malredemption – Coupons that were intentionally not redeemed properly for the correct
products in accordance with the redemption terms printed on the particular coupon.
MIN # - Manufacturer Identification Number, which is now called Company Prefix.
Misredemption – Coupons that were unintentionally not redeemed properly for the correct
products in accordance with the redemption terms printed on the particular coupon.
MMS – Multimedia Messaging Service, an evolution of SMS that can include pictures, video,
audio and graphics. Current U.S. wireless handset and carrier incompatibilities have hindered
widespread use.
Mobile Marketing Association (MMA), www.mmaglobal.com – A global industry association
concerned with issues pertaining to marketing through mobile devices
NACDS – National Association of Chain Drug Stores, www.nacds.org
NACS – National Association of Convenience and Fuel Retailing, www.nacsonline.com
NFBA – National Food Brokers Association, www.nfba.org
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NGA – National Grocers Association, www.nationalgrocers.org
NRF – National Retail Federation. www.nrf.com
Near Field Communications (NFC) – An ultra-short range (less than 20cm) wireless
technology used to transmit data in near real-time. The “handshake” overhead is much more
streamlined than Bluetooth®, allowing for fast (less than 1 second) transactions. NFC is also
compatible with RFID. Companies evaluating NFC should consider security challenges
regarding this technology.
Non-Coupon – A piece of paper that may resemble a coupon or may even be part of a coupon,
but is not an actual store-redeemable coupon.
Number System 5 UPC – A UPC bar code formerly used exclusively for manufacturer coupons.
The first digit of the bar code UPC is five, which identifies the UPC as a coupon. This
implementation standard has been replaced by the GS1 DataBar standard and will be retired
by GS1-US.
Offer Code – A five or six digit element in a UCC/EAN 128 coupon extended code used by
coupon issuers to identify a coupon promotion. The GS1 DataBar requires a six-digit code
used to keep track of redemption.
On-Pack Coupon – A manufacturer coupon that is printed on or affixed to a product’s package
so that it can only be redeemed at a later time.
On-Page Coupon – A coupon designed as an integral part of an advertisement, or otherwise
printed on a magazine or newspaper page.
Open System – The term used to describe computer systems that are freely available for use
without payment by hardware/software developers.
Opt-in – Refers to a consumer specifically granting permission to be contacted by a marketer.
See MMA and IAB guidelines for more information.
Over on Free – A chargeback or an adjustment when a higher value than the maximum value on
a Free Coupon was claimed. When this occurs Reason Code 16 is used.
Pay Directs – Coupons that are submitted by the clearinghouse to the manufacturer on behalf of
retailer with instructions to pay the store or chain directly instead of the clearinghouse.
Point of Sale (POS) – The place where the purchase is made at the check stand or scanning
terminals in a retail store.
Price Lookup Function (PLU) – A feature of an in-store computer system that verifies the
selling price of an item through use of a centrally maintained price file.
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Promotion – 1) A marketing tool that is a temporary effort to create extra interest in the
purchase of a product or service by offering values in excess of those customarily afforded
by such purchases including temporary discounts, allowances, premium offers, coupons,
contests, sweepstakes, etc. Also, sales promotion. 2) Loosely, any effort to encourage the
purchase of a product or service.
Promotional Allowance – Also called merchandising allowance, a discount from a supplier to a
retailer, who agrees to use the discount to promote the product’s purchase and \or sale to
consumer.
Promotion Marketing Association (PMA) – www.pmalink.org. An industry association
concerned with issues pertaining to promotional and integrated marketing.
Proof-of-Purchase – Invoices showing a retailer’s purchase of a sufficient quantity of product to
validate the number of coupons submitted for redemption by the retailer. When Chargebacks
or Adjustments occur, Reason Code 09 is used.
Questionnaire – A series of questions used by a retail clearinghouse or a manufacturer to
confirm that a firm submitting coupons for redemption is a bona fide merchant redeeming
coupons in accordance with the manufacturer’s redemption policy. When Chargebacks or
Adjustments occur, Reason Code 01 is used.
Quick Pay – Program set up for the manufacturer to pay the retailer based on receipt of scan
data collected at the retailer’s point of sale with the physical coupons sent to the retailer’s
clearinghouse.
Reason Codes - These are codes used by the coupon processors to report invoice adjustments /
chargebacks. There are specific codes used by Mfrs. and/or their Agents and other codes
used by Retail Clearinghouses.
Rebate – An offer that requires the consumer to purchase a specified item(s) and mail-in
proof(s) of purchase usually with cash register receipt and receive a cash amount or a store
redeemable coupon.
Redeem – To fulfill the requirements of a consumer promotional offer (such as a coupon) in a
prescribed manner resulting in receipt of goods at a reduced price or free.
Redemption – When the consumer redeems a coupon offer by purchasing the required product,
submitting the coupon at the point of sale, and receiving a discount.
Redemption Center – A location maintained by a manufacturer or the manufacturer’s agent
where coupons redeemed by consumers are to be submitted by retailers and clearinghouses to
obtain reimbursement.
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Redemption Rate – A weighted measure of responses calculated by dividing cumulative
redemptions by the total number distributed.
Refund Certificate (Rebate) – A certificate issued by a manufacturer that offers consumers
money back on the purchase price of a product, usually after they mail qualifying proof(s) of
purchase to the manufacturer, or its fulfillment agent. See Rebate.
Retail Clearinghouse (RCH) – An independent company used by a retailer to sort, count and
submit coupons for payment to manufacturers or its agents, on behalf of the retailer.
Retailer Agent – See Retail Clearinghouse (RCH)
Retailer Agreement – An agreement between a retailer and a clearinghouse authorizing the
clearinghouse to serve as the retailer’s agent in submitting coupons to manufacturers.
Retailer Verification – Authentication of the legitimacy of a retailer to verify that a retail
location exists and that they carry sufficient product to justify coupon redemption.
ROP Coupon – Run-of-Press coupon or a newspaper coupon requiring very short lead time.
RSS – Reduced Space Symbology. Now renamed and re-branded as GS1 DataBar.
Scan Validation – The retail point-of-sale process of scanning a GS1 Databar Coupon and
automatically validating it against the purchased products.
Scanned Value – The monetary amount of a coupon as scanned and calculated automatically by
the point of sale scanning system.
Selection – “Printing,” “Clipping,” or “Downloading.” When a consumer takes the action
required to be able to use a coupon offer. The consumer indicates interest in acting on a
specific offer.
Self – Checkout - A dedicated checkout location that does not require 100% presence of a
cashier. The location performs the scanning of product and handling of cash and card
transactions for the shopper.
Shelf-Talker – A printed promotion designed to hang over the edge of a retailer’s shelf.
Shipping Time – Reasonable shipping time to the manufacturer/agent is five days.
Single Count - A processing method where coupons are processed (scanned) both for the retailer
and the manufacturer. The coupons are retained by the retailer clearinghouse and the data is
electronically transmitted to the retailer as well as the manufacturer or its agent. See
Traditional Two Count.
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SMS – Short Message Service, also known as text messaging, typically restricted to 160
characters per message.
State Grocer Association – An association of independent grocers who usually are members of
FIAE. (Food Industry Association Executives, www.fiae.net)
Store Check – An examination of a store to determine merchandise carried.
Store Coupon – A coupon printed by a retailer and available to shoppers in the store in-store,
either in a flyer or on-shelf or display where the couponed product is stocked. This type of
coupon should not be confused with an “In-Ad” coupon, as the retailer retains liability for
redemption. Coupons are usually destroyed and not forwarded to a clearinghouse for
processing.
Submission Verification – A specific clearinghouse process of counting and sorting a shipment
of coupons from a retailer.
Sunday Supplement – On-page coupon/ad delivered via the printed pages of a Sunday
newspaper supplement (i.e. Parade Magazine) or general interest magazines, etc. (Not an
FSI.)
Tearsheet – An unbound page from a newspaper or periodical showing an article,
advertisement, etc. as printed; used as a proof or as an extra copy.
Traditional Two-Count Process – This is when a retail clearinghouse and a manufacturer or
agent both count the physical coupons submitted for redemption.
UCC – Uniform Code Council, Inc. – Formerly the Uniform Code Council. The name has been
changed to GS1-US.
Uniform Communication Standard (UCS) – A set of standard transaction sets for the grocery
industry that allows computer-to-computer, paperless exchange of documents between
trading partners.
Universal Product Code (U.P.C.) Symbol – A combination of vertical bars printed on product
packages that can be “read” by an electronic scanner at checkout to identify the item,
automatically look up the item’s price in a computer, and instantaneously ring-up the price
(or the value) on the register.
Wireless Application Protocol (WAP) – A set of standards used to govern how mobile
handsets connect to the Internet. A “WAP page” has design characteristics suited for display
on a transmission to small mobile device screens much in the same way that a “Web page” is
governed by standards suited for PCs. The same URL used for a PC website may also be
used for a WAP site. Most web servers can be configured to “sniff” the requesting browser
type and serve the appropriate experience. The PC user is presented a rich user experience
whereas the mobile user is presented with a store finder.
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