Gift cards represent a compelling opportunity for your business. First launched in 1995, gift cards
effectively replaced paper gift certificates as a much more efficient solution for merchants.

How Gift Cards Help Your Business

• Additional revenue from “uplift”upon card redemption
• Higher margin purchases
• Increased customer loyalty
• Increased brand exposure
• Reduced cash returns
• Interest from outstanding balances
• Lower administrative costs
• Easy online reporting
• Real-time activation and processing at the point-of-sale
• Increased security

This example illustrates the potential revenue you
could realize through a gift card program. It is not
necessarily representative of every merchant.

Gift Card Costs (for one store location):
Card Cost ($1.00 x 1,000 cards)              $1,000
Transaction Fee of $0.50 x 2,500(1)        $1,250
In-store Merchandising Materials             $100
Program Set-up Fee                                 $250
Total Cost                                                 $2,600

Results (for one store location):
Average Sales(2)                                     $35,500
Uplift(3)                                                    $10,000
Average Gift Card Sales                           $45,500

Less
Cost of Goods Sold (100% mark-up)        ($22,750)
Total Gift Card Costs (from above)           ($2,600)
Net Profit                                                  $20,150

In this example, a merchant can realize nearly eight times return on investment.

(1) Transactions = number of cards x 2.5 transactions per card.
(2) $35 per card x 1,000 transactions.
(3) Consumer spends 30% more than the value of the card ($35 x 30%).