Gift Cards

Gift Card Features

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

On-line authorization of transactions

Card can be deactivated and new card issued

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?

Increased sales/average ticket size

Convenience to customers• Static Value

• Rechargeable

• Deactivation/New Issue if lost

Convenient for merchants• Eliminates paper certificates – reducing fraud

and time needed for handling

Build brand awareness and create customer loyalty

• Creates a “billboard in the wallet”

Gift Card Industry Statistics

Gift cards are projected to replace 80% of paper gift certificates by 2004

52% of American adults have used gift cards – Standard Register

An estimated 64% of users spend more than face value of card. – Fiala Inc.

Eighty-eight percent of top retailers surveyed had gift card programs in place – Standard Register

Gift Card Industry Statistics

Today retail gift certificates outstanding balances are ~ $1 billion, and are projected to grow to $15 billion in next 2.5 years – American Express

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

Revenue vs. Liability

Financial tracking and reporting

Escheatment