AN INTRODUCTION TO 
COUPONS
COUPONS
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INTRODUCTION
Coupons are created by encoding a Coupon-12 number 
into a UPC-A barcode
The coupon standard makes it easy for issuers of 
coupons and retailers to work together in automating the 
handlingofcoupons
handling of coupons 
The Coupon-12 must be properly coded in a UPC-A 
barcode to be scanned at the point-of-sale
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COUPON-12 CONSTRUCTION
• The Coupon-12 consists of: 
UPC Prefix5
– U.P.CPrefix 5
– Manufacturer ID
– Family Code
Val eCode
– Value Code
– Check Digit
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U.P.C. PREFIX 5
• 512345 87890 4
– Must always begin with U.P.C. 
Prefix5
Prefix 5
– Tells the POS system that it is 
scanning a coupon
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MANUFACTURER ID
• 1234587890 4 
– Use only digits 2 through 6 of 
theassignedUPC Company
the assigned U.P.C. Company 
Prefix (see next slide)
– Partially identifies manufacturer 
of the couponed items
– Must be same as on products 
being couponed
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MANUFACTURER ID (CONT’D)
• Only
use positions 2 through 6 of the U.P.C. Company Prefix for the 
Manufacturer ID
• AlwaysdropthefirstdigitoftheUPC CompanyPrefixandreplaceitwitha
• Always drop the first digit of the U.P.CCompany Prefix and replace it with a 
five (5)
• If a company is assigned a U.P.C. Company Prefix that is longer than 6-
digits, drop all digits after position 6
FAMILY CODE
• 5 12345 87890 4
Productsthatarecouponedmust
• Products that are couponed must 
be assigned a family code
• Designates items being couponed
• PurchasevalidationatPOS
• Purchase validation at POS
• Family codes must be 
communicated to retailers
VALUE CODE
• 5 12345 878904
– The two digits following the 
three-digitfamilycode
three-digit family code
– Redemption value of the 
coupon 
– Predefinedvaluecodetable
Predefined value code table
CHECK DIGIT
• 5 12345 87890 4
– The last digit of the code 
Calculatedfromtheprevious11
– Calculated from the previous 11 
digits
FAMILY CODES
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