I'm still confused on the whole "pre punched card" thing, is it to get the item ready for alchemizing later or is it something else? Thanks in advance for any explanation you could give me!

Once a card is punched it no longer can be used as a Captchalogue card.

This prepares it to be used in the Totem Lathe which makes a totem thing based on the card.

The totem is then taken to the Alchemiter to alchemize the item.

But Dave and Jade found an upgrade to the Alchemiter so that you can just use the code from the card and don’t have to get it punched anymore.

~Mod T