Electronic Gift and
Pre-Paid Card Program
Updates
MSP Training
April 29, 2009
Gift is a Quickly Growing Industry
 Gift Card Sales
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$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%
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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 24 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
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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
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What’s New….
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Basic Cards
 New Card Design
 Basic Card = 50 cards
 DBA name, complete street address and
phone Envelopes & Carriers included
MERCHANT NAME
STREET ADDRESS
CITY, STATE, ZIP
PHONE NUMBER
– 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!
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Standard Card Options
 All new card single card designs
 16 card styles
– 3 gift focused
– 7 focused on verticals
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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
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Standard Card Design

Font 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
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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
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Card Carriers
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.
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New Display Rack and Backer Design
 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
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Updated Collateral and Sales Tools
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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
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It’s Much, Much More than a Gift Card Program

Promotional Marketing Tools
– Discount cards mailed to target prospects
– Gift with purchase
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Corporate Incentives
– Sell to companies to use as employee incentives
– Use internally for rewards or spiffs
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Prepaid Vehicles for Recurring Services
– Coffee shops, auto detail, movie theaters
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Merchandise/Service Credits
– Cash back is not the only way
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Customer Appreciation
– Turn service issues into a retention opportunity

Fund Raisers
– Sell cards at a discount to schools/non-profits
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Budgeting or Limiting Expenses/Spending
– Gas allowance card, B2B runner purchases,
relocation
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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
– 70-80 % of merchant processing merchants are in target markets
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Have your Merchant put a $ amount on a new customer….
Item Description - Car Repair
Value
Typical Sale To Customer
325
Typical Repeat Customer Visit in One Year
3
Typical Length of Relationship with Customer in Years
7
Typical Lifetime Revenue for a Customer
6825
% Merchant's Net Profit on Goods and Services
0.65
Lifetime Net Profit Per Customer
4436.25
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Calculation on Cost of One Gift Card – 100 Standard Cards
Item Description - Car Repair
Typical Sale To Customer
Trans &
Card Cost
Value
325
51.39
Typical Repeat Customer Visit in One
Year
3
0.35
Typical Length of Relationship with
Customer in Years
7
1
Typical Lifetime Revenue for a
Customer
6825
273.26
% Merchant's Net Profit on Goods and
Services
0.65
0.65
4436.25
177.619
Lifetime Net Profit Per Customer
Value = $50.
Card = 1.39
Cost of
(Transaction Fee for
one Card)
(51.74) Total Cost of
Card + Trans Fee
(Total Net Profit - 1
Time Customer)
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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,
2009.
 Printed collateral including Card Sample Kits are available however must
be ordered
Questions and Thank You…
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