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Gift Card Processing

The idea of gift cards began with Neiman Marcus in 1994 when they introduced it in to their chain of stores. Since then, gift cards have significantly grown in popularity both for merchants and consumers alike. In many stores across the country, gift cards have virtually eliminated the time consuming paper chase involved with traditional gift certificates.

Gift card sales for retailers and credit card companies are big business. Basically they receive payment in advance for products or services they may or may not ever have to deliver. For every dollar on a gift card that is not redeemed, the gift card seller earns a profit. Last year, Best Buy Company reported $43 million dollars in unused gift card revenue over the previous two years.

Statistically more and more merchants are offering and accepting gift cards to increase their sales and revenue. In fact, here are some interesting statistics and testimonials with regards to the acceptance of gift cards:
  • Many consumers spend nearly twice as much as the original value of a gift card.                                                              – Williams Group
  • Consumers favor gift cards for other holidays or celebrations beyond the traditional year-end gift-giving period.                    – Deloitte & Touch USA LLP
  • Retailers will issue 53 billion gift cards in 2005, up from 48 billion in 2004.                                                                      – TowerGroup
  • The average recipient spends 20% more than the value of the gift card.                                                                              – National Retail Federation
  • Studies show that 54% of retailers now offer gift cards.             – American City Business Journals Inc.
  • Research shows that retailers switching from paper gift certificates to gift cards increase the amount they sell by 50-100%.                                                                                 – ePaynews.com
  • In 2003, total gift card revenue amounted close to $45 billion and is expected to exceed $90 billion by 2007.                        – TowerGroup
Our Gift Card payment modules are currently integrated too and are available for an abundance of supported processors such as:
  • FDMS Gift Card
  • FDMS ValueLink
  • Fifth Third Bank Cincinnati
  • Fifth Third Bank Tandem St. Pete
  • Givex Gift Cards
  • Paymentech Tampa
  • Stored Value Systems
  • BlackHawk
In addition, our development team is always hard at work to stay ahead of the market demand for additional supported processor integrations, enhancement features as well as accommodating any requested customized solutions for our fast-growing extended family of merchants.