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

2. 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

3. Merchant Benefits Increased Sales Reduced Costs
Attract new customers to the business
Retains full face value = no cash back
Switching from paper certificates to gift card can result in 2-4 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

4. 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

5. What’s New….

6. Basic Cards New Card Design Basic Card = 50 cards
DBA name, complete street address and phone Envelopes & Carriers included
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!
MERCHANT NAME
STREET ADDRESS
CITY, STATE, ZIP
PHONE NUMBER

7. 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

8. 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

9. 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

10. Card Carriers
General purpose. Can be used for Merchandise Returns, Promotions. Comes with Basic & Standard packages
Happy Birthday. Comes with Basic & Standard packages
Gift. Suitable for all occasions. Comes in Standard package
** Additional carriers can be ordered in packs of A combo pack can also be ordered.
Thank You. Comes with Basic & Standard packages

11. 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

12. 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

13. 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, B2B runner purchases, relocation

14. 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

15. 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

16. Calculation on Cost of One Gift Card – 100 Standard Cards
Item Description - Car Repair
Value
Trans & Card Cost
Typical Sale To Customer
325
51.39
Value = $ Cost of Card = 1.39
Typical Repeat Customer Visit in One Year 3
0.35
(Transaction Fee for one Card)
Typical Length of Relationship with Customer in Years 7 1
Typical Lifetime Revenue for a Customer
6825
273.26
(51.74) Total Cost of Card + Trans Fee
% Merchant's Net Profit on Goods and Services
0.65
Lifetime Net Profit Per Customer
(Total Net Profit - 1 Time Customer) 16 16

17. 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

18. Questions and Thank You…18 18