Gift Cards

Gift cards offer the perfect blend of form and function.

Loadable with almost any amount, usable virtually anywhere, a Visa branded gift card is the perfect combination of customer value and convenience and cost-effective marketing.  A gift card can let the consumer fulfill his or her heart’s desire, while reinforcing brand recognition among a savvy and sophisticated customer base.

GTP offers gift cards usable anywhere or gift cards targeted to specific merchants, malls or geographical locations.

Gift cards can be classified in three different categories:

    * Closed loop
    * Semi-open loop
    * Open loop

Closed loop gift cards are cards that are purchased and can be used at a specific retailer. sales of gift cards in 2006 topped $24.8 billion, according to the National Retail Federation. In 2007, they predicted that gift card giving would reach $26.3 billion.

Gift cards are now not only sold at the specific store, but at "gift card malls." These "malls" are often display racks at grocery stores that offer gift cards from a variety of merchants.

Semi-open loop gift cards are cards that can be used more broadly than closed loop, but still be limited to selected stores or a family of stores. Semi-open gift cards can be set up to target a specific industry, a single geographical location, or distinct retailers related by what they sell. A gift card for brides might be usable at flower shops and dressmakers, but not at a sporting goods store.

Open loop gift cards are cards that are branded with a card association logo, such as Visa. They look just like traditional debit cards. These cards can be used at stores that accept Visa debit. However, the purchase is not an extension of credit, nor is it tied to a specific bank account, like a traditional debit card.

Instead, the purchase deducts value from the amount that has been loaded or stored on the card. Prepaid cards are often referred to as Stored Value Cards.
  • A preferred choice for companies to cultivate business relationships or recognize their employees, gift cards are overwhelmingly accepted by consumers and are second only to cash as a recognized incentive.
  • By 2010, more than 1.92 billion merchant gift cards will be issued in the U.S. Pelorus Group Figure 7.20 illustrates merchant gift card growth to over $100 Billion U.S. by 2010.