Consumer Payment Card News

Card or Box?

Americans are quickly grasping that prepaid gift cards can greatly minimize holiday frustration. Besides convenience, prepaid cards keep budgets under control, eliminate unwanted gifts and reduce time spent shopping and wrapping traditional gifts. A new poll shows that 79% of those surveyed would rather receive a $100 prepaid gift card than a more traditional gift worth the same value. The MasterCard survey, conducted by KRC Research, also showed that 88% would rather purchase an open-loop prepaid gift card (a card that can used with just about any merchant) than a retailer-issued card. More than 80% said prepaid cards avoided the unwanted gift problem. About 83% said they would be somewhat or much more likely to stay within their budget if they were shopping for a prepaid card. Nearly 60% indicated that avoiding the time-consuming practices of holiday shopping and gift-wrapping would influence their decision to purchase a prepaid gift card. Additionally, the poll found that 63% of people who receive an open-loop gift card are likely to spend it at the mall as opposed to a grocery store or gas station.

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