4 minutes
LSC offers credit unions and members an affordable gift card option for the holiday season.
Sponsored by LSC
The holiday season is a busy time for gift card demand. But no matter the time of year, the affordable cost, speed and convenience of the CUMONEY gift card program from LSC® make it an ideal gift option. The program is designed to help credit unions to compete with retailers and “stored value” debit cards. In addition, it allows you to conveniently provide members the ability to purchase gifts while conducting other financial business at the branch and increasing your revenue stream.
Nick Sosnowski, VP/operations at $236 million, 16,000-member IAA Credit Union in Bloomington, Ill., says the ease of customization is a key selling point.
“The ability to brand the cards with our [select employee groups’] logos and then to make the purchase process easy and intuitive for them is appreciated,” says Sosnowski. “Pricing, however, is critical. We’re cautious not to price our product outside the marketplace.”
“The straightforward low-cost implementation made it a win-win,” says Traci Rothenstine, CSE, vice president of Ashland Credit Union, Ashland, Ky. “With credit unions, pricing is always a factor. Card products have to compete with other financial institutions and the local mall.”
The CUMONEY cost per card is a low $1.25 for credit unions (varying based on state regulations), and there is no monthly fee for generic logo cards. Credit unions can pass those savings on to their SEGs and members.
Members appreciate the low retail price and SEGs appreciate the option for custom branding. Sosnowski has seen broad member satisfaction. “We’ve had good success offering the product through our relationships with our SEGs when we can customize the logo and also offer a variety of design options.”
IAA CU uses the cards throughout its operations. Cards are distributed over the counter at the teller line, as special incentives and celebration items from the human resources department, and in SEG promotions. Once funded, the cards can be quickly loaded and are ready for pickup by their employees.
“We’ve used our gift card program to leverage our relationships with two of our SEGs,” says Rothenstine. “They approached us about providing them with gift cards they could distribute to their employees for awards, anniversaries, etc. Due to the volume that the SEGs ordered, we lowered our normal fee of $2.95 to $1.95 per card to reward them for their loyalty.”
Ashland Credit Union’s gift card program was so successful that the CU added its SEGs’ logos to the cards in April. “The SEGs loved seeing their own logo every time they used the card and became more appreciative of their employer because of it,” adds Rothenstine. That boost in morale and loyalty strengthened their relationship with the credit union. “The SEGs continue to purchase scores of branded cards throughout the year.”
Features and functions
Like a traditional debit card, CUMONEY gift cards can be used anywhere Visa is accepted, including online. CUMONEY gift cards can also be used at ATMs and POS locations using the Plus or Pulse networks. Once the dollar value is used up, the cards can no longer be used, providing added security.
Other features include:
- more than 60 contemporary designs,
- a seven-year expiration date, and
- the ability to load any amount, from $10 to $1,000, based on the SEG’s or members’ choice.
Benefits and advantages
Along with low-cost implementation, the program provides an easy-to-use, secure web interface for ordering stock and loading funds and free branch marketing materials.
Other benefits include:
- Back-office operations handled by LSC
- No liability for fraudulent activity (Visa’s Zero Liability coverage applies to the program)
- Secure online card activation
- Retail price set by the credit union
“While some other providers offered flexibility, it came at a substantially higher price point. Some offered a similar price point, but no flexibility,” says Sosnowski. “The LSC product allows us a great deal of flexibility in customizing the plastics at a great price.”
As well as a potential revenue source, gift cards are a service to your members. CUMONEY is a low-cost solution that keeps members happy, and that pays dividends.
LSC, Naperville, Ill., a CUES Supplier member, provides credit unions with a favorable operating environment and quality information, products and services so they can compete and prosper in the financial marketplace. From multiple plastic platforms, to managing and developing marketing promotions, and tools to monitor progress and growth, we work with each individual credit union to optimize success. Our goal is to continually strengthen our credit unions, enabling them to be successful, increase their membership and push the movement forward.
