Why Gift Cards? Plastic vs. Paper

Traditional gift certificates are a relic of past times. Electronic Processing Solutions now greatly benefits merchants with the future of plastic gift cards for consumer purchases. To list a few, merchants by accepting plastic gift cards enjoy benefits such as increased sales, customer loyalty, brand identity, and saving time with tedious reports and tracking methods.

How Plastic Gift Cards Benefit Merchants

Increases prepaid gift sales and enhances cash flow
Consumers are more likely to spend more than the amount of money pre-paid on their gift card. As well, any money that goes unused can bring a customer back to spend more money on future purposes.

Cards can be easily integrated into merchant’s marketing programs as a promotional tool
Every time a consumer reaches into his or her wallet they are reminded of a merchants logo. This virtual billboard creates and builds on brand identity that stays with consumers.

Increase merchant’s average ticket size
The customer is likely to spend the amount of “stored value” on their gift card more easily than if they had the cash to purchase the item. The customer is evaluating the merchandise based on the out of pocket cash they can justify on the purchase.

Increased income from the breakage
“Breakage” is a term used when the amount prepaid on a gift card is never redeemed. This income stays with the merchant after the gift expiries.

Faster gift card purchasing and redemption procedures
This is great during the holiday season and high shopping times throughout the year. Using a plastic gift card is as easy and fast as swiping a credit card.

Keeps full cash value in store
Customers must return to use any balance left on their gift card.

Creates customer loyalty
Customers will be more inclined to purchase products of the store they have a gift card for. This will begin to create loyalty for the store the customer is shopping at.

Complete transaction reporting
Easily view generated reports on all card activity as opposed to searching through the paperwork of paper gift certificates.

Minimizes losses associated with paper gift certificates programs
A gift card is only assigned during a point-of-sale, employees gain nothing by stealing cards from inventory.

Most gift recipients make more than one trip to the store to use up the value of their card

Purchasers spent an average of $200 last year, up by $61 from the prior 12 months

45% of the population has used prepaid gift cards, compared to 11% last year

61% spend more than the value of the card