New Comdata(R) Survey Shows Growing Network of Cash Card and Gift Card Purchasing Locations
BRENTWOOD, Tenn., Nov 14, 2007 (www.AllPayNews.com) -- Purchases of cash cards (prepaid cards that can be used at a host of retail locations, branded by MasterCard(R), Visa(R), Discover(R) or American Express(R)) increased 40 percent from 2006, according to a recent survey by Comdata(R). Cash cards are now the third most preferred type of card to receive after restaurant/fast food and department store cards, with the total number of cash cards received among those surveyed increasing from 4 percent last year to 21 percent. While only 14 percent of adults purchased cash cards for others this year, 39 percent of those surveyed prefer to receive a cash card.
"Today's savvy consumer is starting to realize that buying a cash card versus a traditional gift card adds yet another level of convenience for the recipient of the card in that they can redeem the card at a network of participating retail locations," said Bob Skiba, executive vice president and general manager of Comdata Stored Value Solutions.
The survey also revealed that while 48 percent of adults prefer to purchase gift cards through the normal check-out process within a retail location, 19 percent prefer to purchase a gift card using a self-dispensing kiosk. Conversely, 33 percent have no preference for either purchase method.
A new development in the distribution of cash and gift cards is the card kiosk. This technology, developed by Comdata and Self-Service Networks, allows shoppers to purchase mall gift cards in a fast and easy-to-use fashion designed to reduce shopper wait-times during peak seasons. Shoppers can use these gift cards at any participating store throughout a particular mall, instead of being limited to use at one retailer. Comdata Stored Value Solutions currently manages 21 percent of all shopping center/mall gift card programs in the United States.
Comdata Stored Value Solutions is also expanding its foothold in the prepaid card market for the gaming industry with its relationship with Harrah's Entertainment. Winnings can be loaded onto a card, which then can be used for purchases at any other participating retailer located on the casino property.
"These new card technologies are not only simplifying transactions for businesses, but also making purchases more convenient for consumers," said Skiba. "It's all part of Comdata's commitment to be the world's premier payment innovator."
Editor's note: A copy of the survey highlights are available by clicking here or by visiting www.comdata.com.
About Comdata Corporation
Comdata(R) Corporation (www.comdata.com) is redefining the movement of money and information through innovative payment solutions. Comdata provides custom solutions for a wide range of industries such as transportation, retail, government services, aviation, construction, service businesses, restaurants and hospitality. Innovative electronic payment solutions range from credit and debit cards, gift and loyalty cards, fleet, fuel, payroll, purchasing and T&E. As a full-service merchant processor, Comdata's platforms support both its proprietary and branded card networks, as well as card processing for all card types. Headquartered in Brentwood, Tennessee, Comdata employs more than 1,500 people worldwide. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation.
Ceridian Corp. is a business services company that helps its customers maximize the power of their people, lower their costs and focus on what they do best. The company's suite of innovative managed human resource solutions includes payroll and compensation, employee benefits administration, staffing, compliance, HR administration and Employee Assistance Programs (EAP), work-life and health and productivity solutions. Ceridian serves businesses and employees in the United States, Canada and Europe. For more information about the human resource outsourcing company's comprehensive array of solutions, visit www.ceridian.com or call (800) 729-7655. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards and stored value cards, primarily for the trucking and retail industries in the United States.
SOURCE: Comdata Corporation