Abstract: An electronic coupon system and a method of processing electronic coupons are provided utilizing a coupon card on which data representing selected coupons may be stored for subsequent redemption at a point-of-sale terminal. In accordance with one embodiment of the present invention, an electronic coupon system is provided including, a coupon card, an in-store kiosk, a point-of-sale terminal, a host computer, and a coupon data processor. The host computer is in communication with the in-store kiosk and the point-of-sale terminal. The in-store kiosk includes a user interface and a coupon card interface. The point-of-sale terminal includes a transaction data interface and a point-of-sale coupon card interface. The coupon data processor is programmed to correlate the transaction data with the coupon data read from the coupon card by the coupon card interface and to reduce the product sale price by an amount indicated in the coupon data.