Retailer AI (8112) Coupon Processing Requirement Overview

AI (8112) Process Overview

The new GS1 coupon application identifier 8112 was created to provide the coupon industry with a retailer-agnostic digital coupon format. As the AI (8112) coupon offer process was developed, several other major benefits emerged including enhanced security through serialization and separation of data, paper and e-comm compatibility, enhanced product validation, and more automated adjudication by removing cashier intervention options/ 992 offer capabilities.

AI (8112) coupon offer validation process

1. Recognize coupon application identifier "8112" from the scanner as a Universal Coupon. The data string needs to be routed to TCB via real-time API call when the coupon is presented at Point-of-sale by the consumer
2. POS calls out to the centralized database via an API connection to check the offer status. TCB will authenticate the offer as valid and unused.
3. If the serialized AI (8112) data string is valid and unused, purchase requirements are sent back to POS to validate against basket data.
4. POS applies discount or denies discount based on the basket validation.
5. Offer information is recorded in the transaction log for settlement.

Connectivity Requirements Checklist and Certification

This checklist is meant to be an end-to-end checklist for complete connectivity. Once development is complete, Certification is required to ensure all connectivity requirements are in place. 

1. TCB channel connectivity:
   • Cashier lanes and self-checkout lanes (if applicable) need to both be equipped to accept AI (8112) coupons.
   • E-commerce checkout (if applicable) will need to be equipped to accept AI (8112) coupons (can be a future development)
2. Implement anti-stacking solution
3. Ensure all possible coupon data string formats can be processed:
   • AI (8112) data string, Fetch code, Alpha-numeric code (e-commerce environment only)
4. Ensure point-of-sale can process all offer variations based on AI (8112) Supported Offers list
5. AI (8112) settlement file production

Point-of-sale Basics

Coupon processing changes

AI (8112) adjudication logic is based on AI(8110) logic therefore if you are working from AI (8110) logic, changes are required for the POS to appropriately process AI (8112) coupon offers. Changes will vary based on the POS system and Retailer business rules. 

Basic Primary Processing Changes:

1. API Connections: API connections are used to send and receive AI (8112) coupon data from The Coupon Bureau. 
2. Coupon processing logic: AI (8112) processing logic is based on AI (8110) processing logic but does require some updates as some logic components have been adjusted. For coupon processing logic references, please see the North American Point-of-Sale Implementation Guide for Coupons. Examples include:
   • Validate eligible UPCs instead of Company Prefix/ Family Code validation. In current AI (8110) offers, the Point-of-Sale uses Company Prefix and Family Code field to validate product purchases. With AI (8112) offers, PoS will use the GTIN list sent via API to find a 1:1 match in the basket.
     • In addition to UPC validation, PLU validation capabilities are available as well but not required for the initial connectivity.
   • AI (8112) does not support Family Code 992 offers or Cashier Intervention offers.
   • PoS will no longer be required to evaluate the start/expiration date typically found in the barcode.
     

Scanning and Accepting AI (8112) Universal Digital Coupons:

• Mobile phone symbology - Accepting AI (8112) coupons from mobile devices will require a scanner capable of reading QR and code-128 barcodes presented on the mobile screen. 

• Fetchcode - A Fetchcode is a 16-digit code beginning with 8112 that is retrieved in real-time from a consumer’s phone in the event that the barcode cannot be scanned by a cashier or to represent a bundle of coupons. This code will need to be keyed in by the cashier if the phone is unable to the scanned. In the event, the fetchcode represents a bundle, it will be scanned from a barcode. 

• Expanded Bundled barcode – An expanded bundled barcode can contain up to 10 serialized data-string for processing contained in a QR code. 

Anti-stacking

While anti-stacking of manufacturer coupons can become a complex issue to overcome, for the sake of this article, the industry recommendation can be distilled down to only allowing one manufacturer's offer to be applied to each purchased item, regardless of coupon format.

The following is an excerpt from Anti-stacking Offer Procedures, Best Practices for Industry

Retailer Best Practices Recommendation:

• POS and E-Commerce systems should have controls in place that prevent more than one manufacturer offer discounts to be applied to an item or group of items purchased.
• Anti-stacking rules should be built systemically into POS, loyalty systems, or E-Commerce engagements to address manufacturer coupon conflicts.
• The policy on coupon stacking should be stated in the retailer's coupon policy. Retailers should note in their coupon policy which manufacturer coupon or offer type takes priority over another when the shopper consumer attempts to redeem more than one manufacturer coupon on a single item.
• Retailer physical, digital receipts, and digital sales feeds must list the value of any manufacturer coupons applied and clearly indicate which item(s) the discount was associated to (e.g. list “MFG COUPON” and the value discounted directly below the associated item.)
• It is the retailer’s decision to establish its own anti-stacking rules and apply them – the critical issue is to ensure that two or more manufacturers offer discounts cannot be applied to the same eligible item, or group of eligible items, being purchased by the consumer.

Additional References

The following documents are references for use with the Retailer AI (8112) Coupon Guide. Please reach out to your TCB representative to obtain a copy of these documents.

• North American Point-of-Sale Implementation Guideline for Coupons
  • Guidance on how coupon offers utilizing application identifiers (8110) and (8112) should be processed at POS to those already familiar with the fundamentals of North American couponing.
•  GS1 AI (8112) Coupon Data Specifications
  • Components and overall structure of application identifier (8112).
• Joint Industry Coupon Council Voluntary Guidelines for Digital Coupons
  • Voluntary guidelines and best practices for both retailer-delivered digital offers and universal digital offers using AI (8112).
• Anti-stacking Offer Procedures - Best Practices for Industry