1. Gift Card Program

2. Introduction Andean Marketing Group envisions a very successful and profitable source of revenue for all new merchants who choose our Gift Card Program Program. Andean Marketing Group is aware of the needs required by both the merchants and the cardholders and will always deliver an efficient and reliable product to both. The sole purpose of this program is to allow those loyal and constant visiting customers the opportunity to remain in a positive relationship with the merchant while they save time, energy, and money. This Gift Card Program will also assist cardholders in monitoring and controlling their spending habits.

3. Program Overview Access to account balance, transaction detail and other account related administration features is based on account ownership. Gift Cards are owned by the cardholder, neither the merchant nor the distributor have access to account balance and transaction details. With Open Loop cards, the cardholder will purchase an initial card (which will expire in 60 days) at the merchant store. They will receive a new card with their name embossed on the card within 7-10 business days. With Closed Loop cards, the cardholder will purchase the card at the merchant location and will keep that card. If a personalized card is requested, the customer must allow 7-10 business days and pay an additional fee for the customized card. The merchant can only order Gift Cards and obtain basic cardholder information.

4. Program Description Gift Cards can be open loop or closed loop cards. The Gift Cards are loaded with a prepaid amount by the customer or loaded with a refund from the merchant to the customer. They must be loaded with the requested amount of funds by the merchant who sells the card. Gift Cards provide a quick answer to buying a gift at the last minute or for the person who is difficult to shop for.

5. Open Loop cards Opened Loop: In the Opened Loop, gift cards are issued with card association branding, like Visa® or MasterCard®, and can be used anywhere the association brand (i.e., Visa®, MasterCard®), is accepted. Both Opened loop and Closed loop gift cards utilize existing processing networks. Consumers can spend up to the value loaded on the card, and can reload the card at anytime or dispose of it when the funds are depleted.

6. Close Loop cards Closed Loop: In the Closed loop" SVC are issued by a specific merchant or merchant group (i.e., a shopping mall) and can only be used at that specific merchant or merchant group These cards are used primarily to maintain the customers use of funds inside the desired location

7. Gift Card Facts and Statistics 55% of gift card recipients require more than one trip to the store. (Standard Registers 2001 National Consumer Survey of Plastic Card Usage and Awareness) Retailers switching from paper gift certificates to magnetic stripe pre-paid cards a year over year sales jump of 15% to 46% on prepaid cards. (Standard Registers 2001 Survey of National Retail Card Issues) More than 80% of major retailers are gaining a competitive advantage with gift card programs 15% of card holders never redeem the full value of their cards. (Standard Registers 2001 National Consumer Survey of Plastic Card Usage and Awareness)

8. More Gift Card Facts and Statistics A study conducted by Barrier Associates reported that 40% of consumers listed gift cards/gift certificates as their preferred gift to receive, more than all other categories. 59% of gift card purchasers buy gift cards for relatives outside the respondents immediate family; 44% purchase gift cards for friends. (SVS consumer survey, 2004)

9. Merchant Benefits Additional Revenue!! Allows customers funds to be remain only in the merchants location (Closed Loop only) Provides merchant with savings on paper gift certificates Better alternative for issuing refunds to customers By issuing a return of their funds onto a Gift Card it demands the customer to spend that money in their store (Closed Loop only). Maintains customer satisfaction

10. Cardholder Benefits Cardholders can monitor their spending at their favorite stores or at prohibited stores for children They can also set aside a predetermined amount of money for each card in every different store, which will act as a budgeting tool Save on trips to the ATM or bank for cash With Open Loop cards, customers can purchase online and not have to focus on physically going to the store