Each time a Fred's smartcard user purchases Fred's-brand items, he receives 20 points as of 2015. At the end of each quarter, the accumulated points become smartbucks, which can be used like cash at a Fred's store.
Fred's smartcards are free and can be acquired at any Fred's Super Dollar store. Cards must be enrolled online, in the store or by phone to receive points.
Customers use the smartcard at checkout to accumulate points. Points are converted into smartbucks once a quarter based on specific point levels of 1,250, 1,500 and 2,000. Point balances can be accessed on the Fred's website, at the bottom of store receipts and by asking a cashier to scan the card.
Points are converted into smartbucks based on the percentage of qualifying purchases from the quarter and the current point level. For example, 1,250 points gives the card bearer 2 percent of the quarter's qualifying purchases back as smartbucks. The highest percentage available as of February 2015 is 5 percent. Smartbucks expire two months and 10 days after they are awarded.
Smartcards are for rewards, not discounts. However, coupons can be added electronically to smartcards and accessed in the store during purchases. The website for Fred's carries eligible coupons.