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Punch cards regulate student behavior and promote positive interactions within the classroom. You can determine what you're going to punch the cards for, in my classroom I punch for participation, no cursing, and assisting other students. I only give out one punch per class period.
For the class punch cards, I'll give them a punch at the end of the class period if there are no disrespectful comments, 85% classroom participation, and an overall positive class period.
For single student incentives, I give the kids a bag of chips or a few mini candy bars. For the class incentive, depending on when the class period is, I'll throw them a donut party or a pizza party :) your incentive can be as simple as letting students listen to music, etc.