Electronic Gift and PrePaid Card Program Updates MSP

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Electronic Gift and Pre-Paid Card Program Updates MSP Training April 29, 2009

Electronic Gift and Pre-Paid Card Program Updates MSP Training April 29, 2009

Gift is a Quickly Growing Industry § Gift Card Sales – – – $50

Gift is a Quickly Growing Industry § Gift Card Sales – – – $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% 2

Merchant Benefits § Increased Sales – Attract new customers to the business – Retains

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 3

Traditional Gift Target Markets § Specialty Retail – Gift shops – Book/CD/Electronics stores –

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 4

What’s New…. 5

What’s New…. 5

Basic Cards § New Card Design § Basic Card = 50 cards § DBA

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! 6

Standard Card Options § All new card single card designs § 16 card styles

Standard Card Options § All new card single card designs § 16 card styles – 3 gift focused – 7 focused on verticals • • 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 7

Standard Card Design § Font Colors One color logo OR 5 lines of text

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 8

Custom Cards § No changes § Totally customized design – Full color front/black back

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 9

Card Carriers General purpose. Can be used for Merchandise Returns, Promotions. Comes with Basic

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. 10

New Display Rack and Backer Design § Each location will automatically receive one acrylic

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 11

Updated Collateral and Sales Tools § § Solution Sheet Promotional Solution Sheet Card Sample

Updated Collateral and Sales Tools § § 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 12

It’s Much, Much More than a Gift Card Program § Promotional Marketing Tools –

It’s Much, Much More than a Gift Card Program § Promotional Marketing Tools – Discount cards mailed to target prospects – Gift with purchase § Corporate Incentives – Sell to companies to use as employee incentives – Use internally for rewards or spiffs § Prepaid Vehicles for Recurring Services – Coffee shops, auto detail, movie theaters § Merchandise/Service Credits – Cash back is not the only way § Customer Appreciation – Turn service issues into a retention opportunity § Fund Raisers – Sell cards at a discount to schools/non-profits § Budgeting or Limiting Expenses/Spending – Gas allowance card, B 2 B runner purchases, relocation 13

Let EGC Help You…and Your Sales § Move Merchant Processing from the Competition –

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 14

Have your Merchant put a $ amount on a new customer…. Item Description -

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 15

Calculation on Cost of One Gift Card – 100 Standard Cards Item Description -

Calculation on Cost of One Gift Card – 100 Standard Cards Item Description - Car Repair Typical Sale To Customer Value Trans & Card Cost 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 4436. 2 5 177. 619 Lifetime Net Profit Per Customer Value = $50. Cost of Card = 1. 39 (Transaction Fee for one Card) (51. 74) Total Cost of Card + Trans Fee (Total Net Profit - 1 Time Customer) 16

Sales Process and Change Plans § New card designs are available to sell immediately

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… 18

Questions and Thank You… 18