The Broken Link - Digital Transactions

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Prepaid gift cards, meanwhile, need alternative means of distribution. Sales of gift cards in 2006 amounted to $80 billion, according to TowerGroup, and there are more than 660 million openloop (Visa- and MasterCard-branded) and closed-loop cards, according to Mercator Advisory Group Inc. There are only three methods to buy gift cards today: Over-the-counter purchase at the desired merchant; Via the J-hook card malls at mass merchandisers and convenience stores; Over the Internet. All three are relatively inconvenient for the purchaser and a hassle for the seller in terms of activation, stocking of cards, dealing with growing security and activation issues, and the labor cost involved. ATMs offer a more convenient, secure, and economical gift card distribution option for both businesses and consumers. As has been repeatedly demonstrated for more than 35 years, consumers prefer the time-andplace convenience-value proposition in the dispensing of value media. Imagine the scene during recent holiday seasons, with people trying to buy gift cards for family, friends, and co-workers at retailers and other merchants with J-hook card malls: Crowds of people sorting through racks of cards, long lines of people trying to pay for the cards and to get them activated, and frustrated checkout clerks and customers. Compare this scene to driving or walking up to an ATM that features a gift card of the merchant at that merchant’s location or an ATM that features the gift cards of various retailers, inserting your payment card, and selecting the number of cards you wish. The consumer has none of the hassle, but experiences added value with a premium or coupon attached to the card for use by the purchaser. No security or fraud worries as the gift cards are contained in a locked safe within the ATM so no one can photograph the serial or account number and use the number shortly after the card has been purchased and activated. Dispensing Value Better ATM Services’ card medium is in the form of a matted, plastic card sheet. It is slightly more than 3 inches wide and 6 inches long and about half the thickness of a normal embossed card. The card sheet comes in three panels that are easily snapped apart. Each panel can consist of a card, premium coupon and/or advertising and promotion. Prepaid card processor Comdata Corp. cites studies that show about 80% of gift card purchasers will choose a gift card that offers a value premium to the purchaser over another that has no premium offer. Dispensing possibilities abound. Though Better ATM’s business model is an enabling model via its patents and does not directly compete with either industry’s participants, the company has launched five beta ATM sites in restaurants in the greater Phoenix area to test real-world acceptance. The ATMs dispense both cash and the restaurants’ gift cards. All cards have a premium offer for a free appetizer, desert, or value premium for food and drink. National retailers have inquired about having their prepaid cards distributed through financial institutionand ISO-owned ATMs as well as ATMs in shopping centers dedicated to distributing gift cards of the mall’s client tenants to save them the hassle of selling and activating cards over the counter—especially during the holiday season. Packaged-goods firms have inquired about coupon space and paying a fee to the ATM distributor. Others see opportunities for ticketing for sporting events and concerts. Honey: ATMs are wellsuited to deliver products like prepaid cards. Card panels can consist of the admission ticket and prepaid value for refreshments once inside the venue, along with a collector’s photo of a marquee athlete or performer. Transit-pass applications are obvious, especially with the opportunity for providing safety announcements and advertising—thus enhancing revenue opportunities. Another interesting concept was recently advanced from overseas in which certain airlines will sell a “fast-track” pass for passengers not wanting to wait in long lines to pass through security. Selling such passes via the ATM is viewed both as an opportunity to reduce the size of queues at check-in counters and to promote shopping once inside the security zone. These are simply a few of the possible applications for increasing transaction volume and delivering value to consumers with time-and-place convenience. Better ATM Services’ licensed and certificated participants are free to create their own offers and pricing, and operate within current or newly formed market and operating infrastructures. The ATM remains the most frequently used delivery channel for banks and for fulfilling consumer demand for cash. Now, delivery of other value forms is possible in large numbers, not only for banking, but also for retailers, packaged-goods manufacturers, sport and entertainment purveyors, and the public sector, providing opportunities for additional revenue and further expansion of the versatility and popularity of ATMs. DT Thomas Honey is chief development and marketing officer at Better ATM Services Inc., Mesa, Ariz. Reach him at tom@betteratmservices.com. 22 • digitaltransactions • February 2008
Earn Interchange with United Cash Solutions and ATM Sales If you have been restricting your service offerings to credit card processing and POS sales, you are severely limiting your earning potential. Rather than having to pay interchange from credit card transactions, United Cash Solutions will enable you to EARN interchange from ATM processing and will help you add profitable new revenue streams to your office with ATM sales! Multiple Revenue Generating Opportunities United Cash Solutions offers a variety of sales options to help you fully take advantage of our impressive ATM program. ATM Purchases and Leases Earn 100% of the profit on leases and sales ATM Conversion/Reprogram Earn surcharge revenue from existing ATMs FREE Placement Earn revenue from withdrawals with our free ATM solution Earn Residual Income from up to Five Different Revenue Streams Interchange Revenue Surcharge Revenue Monthly Service Fees Revenue Armor Car Delivery Revenue Cost of Cash Revenue A Full Service ATM Solution Our ATM program is backed with unparalleled service. We provide a national vault-cash service as well as nationwide installation. United Cash Solutions is sponsored into all national and regional ATM and POS debit networks and our in-house customer service and technical support representatives are ready to assist you 24 hours a day, 7 days a week! Why Limit Your Earning Potential? Contact United Cash Solutions today and find out how ATM sales can enhance the profitability of your sales office. Let the bank pay YOU interchange on all of your ATM processing. To sell, lease or place ATM machines, contact United Cash Solutions: 1-800-698-0026 Alan Forgione, President - ext. 1410 Stephanie DeLeve, VP of Sales - ext. 1430
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Page 4 and 5: SOME COMPANIES STAND OUT FOR OBVIOU
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Page 11 and 12: challenges to interchange. Last yea
Page 14 and 15: TRENDS & TACTICS TRENDS & TACTICS A
Page 16 and 17: ACQUIRING February 2008 digitaltran
Page 18 and 19: ecently adopted NCR Corp.’s solut
Page 20 and 21: In addition, 67% of retail treasury
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Page 33 and 34: Revolutionary Times Call for a Revo
Page 35 and 36: Yes, we’re on the Web. And in you
Page 37 and 38: SECURITY February 2008 digitaltrans
Page 39 and 40: they don’t want approved. Some cu
Page 41 and 42: ENDPOINT Behind the Experimentation
Page 43 and 44: ©2007 Digital Check Corp. All righ

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