Electronic Gift and Pre-Paid Card Program Updates MSP Training April 29, 2009

2 Gift is a Quickly Growing Industry  Gift Card Sales – $50 billion in 2005 – $57 billion in 2006 – $61 billion in 2007 – $65 billion in 2008 (estimated) – $80 billion by 2011  Adult Consumers … – Received 4.83 gift cards on average in 2006 & 2007 – Spent $53 per card in 2007 up from previous years  Gift Card Popularity – The #1 gift during the holiday season – 50% of gift cards received during the holiday season were redeemed by the end of January – Average breakage ranges from 4-15%

3 Merchant Benefits  Increased Sales – Attract new customers to the business – Retains full face value = no cash back – Switching from paper certificates to gift card can result in 2- 4 times the volume…by capitalizing on impulse purchases – 61% of recipients spend more than the card value – Most consumers spend 25% more than the face value of the card when redeeming a card received as a gift  Reduced Costs – More efficient and cost effective than paper – Industry average is $1.22 to issue and $1.22 to redeem  Increased Security & Reduced Fraud – Cards have no value until activated  Easy to Use – Works seamlessly with same solutions used for credit cards – Electronic reporting and tracking

4 Traditional Gift Target Markets  Specialty Retail – Gift shops – Book/CD/Electronics stores – Wine/Liquor stores  Restaurants – Fine dining – Quick service – Coffee shops  Entertainment – Movie theaters – Amusement/recreation – Video/game rentals  Personal Services – Auto detail – Beauty Salon/Spa

5 What’s New….

6 Basic Cards  New Card Design  Basic Card = 50 cards  DBA name, complete street address and phone Envelopes & Carriers included – 30 “General Purpose”, 10 “Thank You”, and 10 “Happy Birthday”  Recommended for single location merchants  Reorders revert to Standard Card Package (100 card minimum)  Cards delivered within 5 business days! MERCHANT NAME STREET ADDRESS CITY, STATE, ZIP PHONE NUMBER

7  All new card single card designs  16 card styles – 3 gift focused – 7 focused on verticals Take out & delivery Restaurant Landscaping, florist, nurseries Sporting goods, sports teams, golf courses Coffee shops Spas, salons Auto repair, auto dealers, car wash – 6 Solid Color Styles Standard Card Options

Standard Card DesignFont Colors  One color logo OR 5 lines of text – 3 text-style options ( Times New Roman, Arial, Brush Script ) – 12 imprint color options – two new colors Orange and Pink  Order the quantity needed – 100, 200, 500, 1000  Envelopes & Carriers included – Per 100 cards - 20 “Gift”, 20 “Happy Birthday”, 20 “Thank You” and 60 “General Purpose”  Cards delivered within 10 business days from proof approval 8

9 Custom Cards  No changes  Totally customized design – Full color front/black back – Design services available  Minimum order quantity of 500  Carriers available for purchase (not included)  Cards delivered within 21 business days from proof approval

Card Carriers 10 General purpose. Can be used for Merchandise Returns, Promotions. Comes with Basic & Standard packages Happy Birthday. Comes with Basic & Standard packages Thank You. Comes with Basic & Standard packages Gift. Suitable for all occasions. Comes in Standard package ** Additional carriers can be ordered in packs of 100. A combo pack can also be ordered.

New Display Rack and Backer Design 11  Each location will automatically receive one acrylic Display Rack with backer  Deployment materials detail how to setup and display cards  An actual card can be placed inside the display backer for further brand enhancement

12 Updated Collateral and Sales Tools  Solution Sheet Promotional  Solution Sheet  Card Sample Kit  Standard Card Style Guide – Used by merchants to select card style/color  Graphic Specifications – Helpful for cards with logos or for custom cards  All are available on the MSP Infocenter  Top three are also available in hardcopy

13 It’s Much, Much More than a Gift Card Program  Promotional Marketing Tools – Discount cards mailed to target prospects – Gift with purchase  Corporate Incentives – Sell to companies to use as employee incentives – Use internally for rewards or spiffs  Prepaid Vehicles for Recurring Services – Coffee shops, auto detail, movie theaters  Merchandise/Service Credits – Cash back is not the only way  Customer Appreciation – Turn service issues into a retention opportunity  Fund Raisers – Sell cards at a discount to schools/non-profits  Budgeting or Limiting Expenses/Spending – Gas allowance card, B2B runner purchases, relocation

14 Let EGC Help You…and Your Sales  Move Merchant Processing from the Competition – Leading with a card program can be the driver to gaining the merchant processing business  Improves Merchant Close Rates – Adds value to the processing relationship – One stop shop for all payment processing needs  High Percentage of Current Clients are Targets – % of merchant processing merchants are in target markets

15 Have your Merchant put a $ amount on a new customer…. Item Description - Car RepairValue Typical Sale To Customer325 Typical Repeat Customer Visit in One Year3 Typical Length of Relationship with Customer in Years7 Typical Lifetime Revenue for a Customer6825 % Merchant's Net Profit on Goods and Services0.65 Lifetime Net Profit Per Customer

16 Calculation on Cost of One Gift Card – 100 Standard Cards Item Description - Car RepairValue Trans & Card Cost Typical Sale To Customer Value = $50. Cost of Card = 1.39 Typical Repeat Customer Visit in One Year (Transaction Fee for one Card) Typical Length of Relationship with Customer in Years 7 1 Typical Lifetime Revenue for a Customer (51.74) Total Cost of Card + Trans Fee % Merchant's Net Profit on Goods and Services 0.65 Lifetime Net Profit Per Customer (Total Net Profit - 1 Time Customer)

Sales Process and Change Plans  New card designs are available to sell immediately  EGC set up requests with old card designs will be honored until May 31,  Printed collateral including Card Sample Kits are available however must be ordered

18 Questions and Thank You…