Posted by Lisa Hochgraf
Until recently, the only places selling prepaid gift cards were financial institution branches, Web sites or merchant J-hook racks (like I saw and wrote about in "Cards Buffet.")
How'd you like to sell them through your ATMs?
The hardware may be ready. Better ATM Services has patented technology that enables ATMs to dispense up to eight (but typically four to six) prepaid gift cards via the ATM cash tray using existing cassettes in the ATM. In addition to turning this into a self-service endeavor, offering gift cards this way may help reduce card fraud by putting the plastic inside the ATM vault.
Some big companies in the ATM world are getting on board with the idea. Starting today, ANI Advanced Network Inc., San Diego (a provider of ATM sales, service and transaction processing), will enable its clients (including 25 leading credit unions in southern California) to dispense gift cards in time for the holidays. ATM/self-service giant Diebold signed a deal in October to become the first ATM manufacturer certified to offer Better ATM Services' solution.
As mentioned in "Cards Buffet" post, the last time Credit Union Management magazine checked in on credit unions' prepaid card offerings (for our March 2006 issue, see "Gift Cards"), the CUs interviewed were having a lot of success with gift card sales, particularly right before the holiday season. With Christmas just over a month away, now might be a good time to take another look at your own gift card offerings.
