Gift Cards
Gift Card Features u Host-based product -All activity stored at Concord’s host -Multi-locations may be linked together -ClientLine™ reporting system -Balance inquiries available -Small merchant basic reporting –Customer logo printed on card –Reduces Fraud
Gift Card Features u On-line authorization of transactions u Card can be deactivated and new card issued u Mag stripe offers 4 types of Gift Cards: - Static Value (customer determined) –Static Value (i.e. $10, $25, $50) –Rechargeable –Promotional Value
Why Offer Gift Cards? u Increased sales/average ticket size u Convenience to customers Static Value Rechargeable Deactivation/New Issue if lost u Convenient for merchants Eliminates paper certificates – reducing fraud and time needed for handling u Build brand awareness and create customer loyalty Creates a “billboard in the wallet”
Gift Card Industry Statistics u Gift cards are projected to replace 80% of paper gift certificates by 2004 u 52% of American adults have used gift cards – Standard Register An estimated 64% of users spend more than face value of card. – Fiala Inc. u Eighty-eight percent of top retailers surveyed had gift card programs in place – Standard Register
Gift Card Industry Statistics u Today retail gift certificates outstanding balances are ~ $1 billion, and are projected to grow to $15 billion in next 2.5 years – American Express u Gift Card systems are the fastest growing consumer payment systems in the US over the past 3 years – Nilson Report
Generic Cards vs Custom Cards Generic Cards Choice of 12 industry-specific card designs Promotional collateral available – banners, carriers, signage, etc. Low-risk and very affordable Custom Cards Completely customizable cards and signage programs Use as promotional pieces for special sales events Custom carrier design available, a unique differentiator
Generic Carrier w/ Custom Card
Custom Carrier with Custom Card
Custom Breakaway Card
Examples – Generic Industry Card
Examples – Custom Cards
Legal Overview u Revenue vs. Liability u Financial tracking and reporting u Escheatment