1. Gift Cards

2. 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

3. 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

4. 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”

5. 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

6. 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

7. 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

8. Generic Carrier w/ Custom Card

9. Custom Carrier with Custom Card

10. Custom Breakaway Card

11. Examples – Generic Industry Card

12. Examples – Custom Cards

13. Legal Overview u Revenue vs. Liability u Financial tracking and reporting u Escheatment