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.

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

 

 

 

 

 

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