CLOSED LOOPS (PROPRIETARY) GIFT CARDS:

Closed Loop Gift Cards and prepaid media are limited to a specified retail or point-of-sale organization.  For example, an Outback Steakhouse Gift Card can only be redeemed at an Outback restaurant.  There are many types of closed-loop products including Gas Cards, Phone Cards, Transit tickets, Restaurant Cards, Event Tickets, Grocery Store Cards, and Music Cards.

Here’s a snapshot of the market for Closed Loop Gift Cards and what you need to know about ATMs and Closed Loop Products.

1. Gift Card Sales Numbers
2. Special considerations
3. ATM Capabilities
4. What Do I Need to Do to Start Selling Open Loop Gift Cards from My ATM?

1. Gift Card Sales Numbers

• Nearly two-thirds--62%--of all U.S. adults purchased at least one Gift Card in 2007, and Packaged Facts projects that this will rise by 1 percentage point per year, to reach 67% in 2012.
• Among those who purchased Gift Cards during the past 12 months, 35% say they plan to spend more on these cards during the next 12 months, and 9% said they expect to spend "significantly more" on them.  About 60% expect to spend the same amount on the cards, while just 6% said they'll spend less.
• Cards' continuing growth is being spurred by consumer recipient preferences, as well as the convenience for the card purchaser.  According to a late '07 BIG research survey conducted for the National Retail Federation, Gift Cards/certificates are the top gift preference of most people age 18 and over: 53.8%.  They are the top choice of 62% of women, although they come in #2 among men with some 45% saying they prefer cards, but 52% prefer books, CD's, DVD's, videos, and video games.
• To continue to grow card volume, Packaged Facts stresses that retailers and card issuers will need to continue to innovate in packaging and merchandising.  Back to List
  

NOTE:  *Source “Gift Cards: 5% Growth Projected Through 2012” June 10, 2009, http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=74402

2. Special considerations

• Any Gift Card program can be printed on  Better ATM^TM Services’ Gift Card sheet and dispensed from the ATM.
• Better ATM^TM Services can assist in coordination of the printing as we have identified and certified specific Gift Card manufacturers.
• Better ATM^TM Services has contracted for several “Ride Along” and coupon offers that can be coupled with traditional Gift Card offerings.  Back to List 

3. ATM Limitations

• Closed Loop Gift Card dimension requirements are not as restrictive as they are for Open Loop Gift Cards.  That’s why several more brands and models of ATMs are certified to dispense Closed Loop Gift Cards.  The following manufacturers have ATMs capable of dispensing Closed Loop Gift Cards:
  • Wincor-Nixdorf
  • Diebold
  • Nautilus Hyosung
  • Tranax
  • Triton
• Better ATM^TM Services’ Phase II technology is necessary, only if the Closed Loop Gift Card requires activation at the time of purchase or if the ATM owner prefers to limit risk by activating the Gift Card at the time of purchase.  Otherwise, an active Gift Card can be placed in the secure ATM and other security measures such as scratch off portions or teleprompt activation can be used to reduce the risk of theft or shrinkage.  Back to List
  

4. What Do I Need to Do to Start Selling Open Loop Gift Cards from My ATM?

• Contact Better ATM^TM Services at info@betteratmservices.com or call us at (480) 296-2033 and let us know you’re interested in selling Open Loop Gift Cards.  Back to List