|
 |
|
Using Prepaid Credit Cards as Business Promotions |
 |
by: Debbie Dragon
As consumers are reducing their spending, businesses are trying just about everything they can think of to encourage spending in their stores or on their websites. One of the more effective methods of getting customers to check out what you've got to offer is to give away something too good to pass up. This is why many retailers have turned to prepaid credit cards as business promotions. Giving away a “credit card” offers a more professional appearance than giving out cash or offering rebates for purchases.
In addition offering prepaid credit cards as promotions to get people into their stores, businesses are using them as contest giveaways, rewards and incentives to employees for meeting certain sales criteria or exceeding job expectations, or as incentives to customers to listen to business presentations (think timeshares).
It is not a difficult process for businesses to begin using prepaid credit cards as giveaways. Basically, the business can purchase any number of cards having any denomination they choose, and since they are fully transferable – they can be handed to any customer or employee they want.
A business must only decide a few things when looking to start using prepaid cards in their promotions.: how much money is in the budget for the promotion, how many prepaid cards they want to give away, and where to buy the cards from in order to pay the lowest in fees with the best quality service for the card recipients.
Budget: Figure out the total of your promotional budget for the prepaid credit cards. Once you have this number, you'll need to locate a prepaid card provider to determine how much you'll pay in fees to purchase a card. If your promotional budget total is $4,000 and it costs $1 per card in fees, you'll need to factor in the fees when determining how many cards you can purchase and with what dollar amount loaded on them.
Prepaid Providers: Many vendors, including your local WalMart and other department stores offer prepaid credit cards. If buying hundreds of cards, you may be better off locating a wholesale or bulk-order vendor to keep your fee-per-card lower. Also consider what kind of service your card recipients are likely to receive once they start using the card. Prepaid cards are often reloadable, which means the recipient can make a deposit to put more money on the card once they've spent what's on it. If you choose reloadable cards, it's a good idea to find cards that offer low fees, good customer service and a variety of deposit methods to make it easy for your recipients to use their prepaid cards. The easier it is for the customer to use their promotional card, the happier they will be and the better they'll feel about your company in general.
Personalized Cards: Some vendors may make it possible for you to personalize the prepaid credit cards you're using for business promotions. This would make it possible for you to have your logo imprinted on the cards themselves – a very professional move that will make you stand out over your competition. Customers will immediately associate your business as being professional, and probably a “large” business, whether you are a 2-man operation or a 2,000 man operation.
Other Uses for Prepaid Credit Cards
Prepaid cards are also ideal for gifts to family and friends. You can put them in a personalized greeting card with a suggestion for what to use it for – it's the same as putting cash in the card, only more fun since the money is on the prepaid credit card.
Prepaid cards make a great gift for graduating seniors or college students and are great for traveler's who want to avoid carrying cash or traveler's checks in their pocket.
|
Did you find this article helpful? |
|
|
Credit Card Articles > Business Credit Cards > Using Prepaid Credit Cards as Business Promotions
|
|
|
 |
|
