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Gift Cards are a growing market

  • Gift Cards- Electronic Gift Certificate Programs
  • Loyalty Cards - Electronic Customer Loyalty and Tracking Programs
  • Web based Account and History Tracking Software

Brand, issue and process your own secure electronic gift and loyalty card to replace paper gift certificates and punch card frequency programs. Completely customize a stored value card service to meet your program requirements. A full suite of reporting services will help you increase sales and manage liability.

The fact is that Gift Cards are truly great all year. Don't just think of the year end holiday season as a time for Gift Cards. Gift Cards sell very well throughout the year for birthdays, weddings, special events, as rewards, for merchandise returns, for marketing campaigns and much more. While generic cards can get you off to a fast start, we highly recommend that you create a custom card with your brand and logo that is unique to you.

If you have any questions about stored value prepaid, gift and loyalty cards, please contact us for personal assistance!

Stored Value at a Glance...

Sales

Merchants use in-store displays to merchandise gift cards as an impulse buy near the POS register. A customer purchases the card with cash, a check or a credit card for any dollar amount. The amount purchased is recorded as "stored value" or "prepaid" in the host database.

Redemptions

The cardholder presents the gift card for full or partial payment of a purchase. The merchant swipes the card for authorization.

Reload

The cardholder can purchase additional value or reload the card for any amount in person, by phone, or both, depending on the system you choose. The merchant can choose to encourage use with incentives like loading $60 in value for the price of $50.

Data Processing

The card system operates to activate cards, and process sales, voids, and balance inquires from your credit card terminal or point of sale (POS) system. The printer produces a paper receipt for each transaction.

About Gift Card Acceptance:

Accepting Gift cards to your customers is very common throughout various industry types. Gift Cards are offered by both, leading retailers, food/restaurants and many different types of service organizations. Some of the many benefits Gift Cards can offer your business are below.

How can Gift cards help my business?

  • Offering Gift Cards can increase your new and return business
  • Selling Gift Cards can increase both cash flow and profits
  • Accepting Gift cards reduces transactions processing fees
  • Honoring Gift Cards helps you promote customer loyalty
  • Gift card software can track the spending habits of gift card users
  • Gift Cards are a great tool to help you advertise your business

Return On Investment - Profit Potential

(When Purchasing 500-2500 Custom Printed Gift Cards)

Card Services & Costs

500 Cards

1000 Cards

2500 Cards

Number of Cards Sold

500

1000

2500

Cost Per Card

$ 1.51 x 500

$ 1.40 x 1000

$ .65 x 2500

Total Card Costs

$755.00

$1,400.00

$1,625.00

Transaction Costs (Includes 4,000/Yr)

$40/Mo.

$40/Mo.

$40/Mo.

Annual Transaction Cost

$480.00

$480.00

$480.00

Merchandising Tools

Included

Included

$500.00

Program Set-Up Fee

$500.00

$750.00

$1,000.00

Total Cost

$1,735.00

$2,630.00

$3,605.00

Profit On Gift Card Sales (Selling 500, 1000, 2500 Gift Cards)

Profit Item

500 Cards

1000 Cards

2500 Cards

Average Activation Amount

$ 50 Per Card

$ 50 Per Card

$50 Per Card

Total Value Stored on Card

$25,000.00

$50,000.00

$125,000.00

Customer Spends 33%

$8,250.00

$16,665.00

$41,250.00

More Than Value On Card

 

 

 

Total Revenue

$33,250.00

$66,665.00

$166,250.00

50% Profit Margin

$16,625.00

$33,325.50

$83,125.00

12% Un-Redeemed

$3,000.00

$6,000.00

$15,000.00

Program Profitability

$19,625.00

$39,325.50

$98,125.00

Total Cost (From Above)

($1,735.00)

($2,630.00)

($3,605.00)

Net Profitability

$17,890.00

$36,695.50

$94,520.00

 

 

 

 

Gift Cards are a growing market

  • Gift card sales in 2005 were estimated at approximately $65 billion up an estimated 24% from the previous year
  • The average consumer spent $233 on gift cards with an average value of $48
  • 92% of adults have gift card awareness - up from 76% in 2002
  • 59% of the American shopping public, 131 million people, has used or received a gift card in the past twelve months.

Benefits of using Gift Cards for your Business

  • Plastic gift cards outsell paper gift certificates 10 to 1
  • Card circulation helps build brand awareness
  • Declining balance keeps full cash value in store
  • 56% of customers spend more than card value
  • Powerful promotional tool for marketing campaigns
  • Electronic audit trail minimized losses
  • Merchant billboard in customers wallet

 

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