Graphite’s

GIFT CARDPROGRAM

THE PERFECT GIFT An estimated $87 billion on gift cards will be

spent this holiday season.

The wallet-sized, prepaid piece of plastic has been the most popular gift in the United States for the past five years.

Whether you think it’s the ultimate cop-out or a practical purchase, the gift card has revolutionized the way shoppers and retailers handle special occasions.

GETTING THE MOST FROM GIFT CARDSGift cards can be utilized in many different ways by all

types of retailers: Employee incentives

Example: Employee of the month receives a $25 gift card

Prepaid card for recurring sales

Preload value on cards for businesses with recurring small tickets sales such as coffee shops.

GETTING THE MOST FROM GIFT CARDS (CONTINUED)

Marketing

Example: Mail cards loaded with small value (i.e. $5) or a mystery amount to local residents in order to draw them into the store

Use for store credits, returns and refunds

Use for customer appreciation and retention

AGENT BENEFITS Open doors to new merchants

Retention! Retention! Retention!

Merchant find it difficult to leave because cards with balances must be honored to comply with state and federal laws

Earn additional revenue

If you don’t offer gift cards to your merchants, you leave the door open for competition

TARGET MARKET SECTORS

Department store33.8%

Restaurant28.5%

Discount Store14.3%

Bookstore16.6%

Electronic Store15.9%

Coffee Shop12.4%

Home Improvement Store9.9%

Entertainment(movies,etc.)9.6%

Clothing Store8.4%

Grocery Store/Gasoline8%

Source: Conducted in November 2007 and January 2008 by BIGresearch for NRF.

MERCHANT BENEFITS

Attract new customers and build customer base

Builds brand recognition and brand loyalty

Enhances a business’ professional image

Increases profitability – no cash back!

Value can be added onto a gift card keeping the funds in the merchant’s register

Merchants benefit from float since they have the funds until the card is redeemed

MERCHANT BENEFITS (CONTINUED)

Gift cards outsell paper gift certificates 3 to 1

Countless gift giving occasions such as birthdays, anniversaries and Christmas/Hanukkah lead consumers to buy gift cards year- round

Cards are like miniature billboard in customers’ wallets

Uplift

Studies have found that people will usually spend 30% more when using a gift card, which is known as “uplift”

MERCHANT BENEFITS (CONTINUED) People perceive the value on the card as “free money”

or “found money”. As a result, people spend more money

Example: A shopper in a retail clothing store with $25 on her card will splurge on a item that is $25 more than they would otherwise be willing to spend.

Breakage

12% of gift card values are never used because the consumer loses or forgets about the card; this unredeemed value is known as “breakage”

Example: For every $100 worth of gift cards sold, $12 will not be used providing $12 in extra profit for the merchant

RETURN ON INVESTMENT CALCULATOR

Once a merchant understands the numerous benefits of gift cards, it becomes an easy sales.

You can illustrate the financial benefits of offering gift cards with Graphite’s Return on

Investment Calculator.

RETURN ON INVESTMENT CALCULATOR 1000

$0.85$850.00$450.00$119.40$1419.40

$25.00$25,000$8250.00$4987.50$2500.00$7,487.50$1419.406,068.10427.51%

Number of CardsCost Per Card

Total Package CostTransaction Cost (3000 @ $.15/ea.)

Hosting (12 @ $9.95)Cost of Opportunity

Average Activation AmountTotal Value of Cards

Card Holder Spends More (33% Lift) Profit Margin (15%)

Unredeemed Value/Breakage (10%)Program Profitability

Cost of OpportunityNet Profit

Return on Investment

SPECIAL OFFERING

50 FREE CARDSWith a 60-Day Trial Period

50 FREE CARDS

After the 60 day trial, merchant will pay a $9.95 monthly service fee and $0.15 for each transaction (activate, add value, redemption or inquiry)

There is no setup fee for using a pre-designed template or custom image.

Professionally designed cards will require a $75/hr design fee.

Shipping and handling fees will apply

All gift card packages include envelopes, window decals, and acrylic stand with insert and two register decals.

A CUSTOMIZED PACKAGE FOR EVERY MERCHANT

Full Color Pre-Designed Package

Create an original card design from a wide selection of professionally designed templates that can be customized with merchant’s info.

Merchant can choose from a selection of font styles, font colors and text placement.

Full Color Custom Package

With our full-color custom package, your merchant can upload a logo or their own image use as their card design.

PACKAGE COSTS

QUANTITY COST COST PER CARD

100 $94.95 $0.95

250 $199.95 $0.80

500 $349.95 $0.70

1,000 $599.95 $0.60

All gift card packages include: Envelopes Window decal Two register decals Acrylic stand with insert

NEW ONLINE ORDERING WIZARD

It has never been easier to order gift cards! If your merchant enrolls in the free trial with 50 free

cards, a link will be sent via email directing them to the Graphite Gift Card Wizard to order their gift cards.

The site allows the merchant to select and customize one of our pre-designed templates or upload their own image.

NEW ONLINE ORDERING WIZARD

NEW ONLINE ORDERING WIZARD

NEW ONLINE ORDERING WIZARD

NEW ONLINE ORDERING WIZARD

NEW ONLINE ORDERING WIZARD

NEW ONLINE ORDERING WIZARD

ONLINE REPORTING

Cardholders can log on to www. Checkmygiftbalance.com to view their card’s balance (shown above)

CERTIFIED TERMINALS

Graphite is certified on most major terminals in the marketplace today!

For a list of certified terminals and POS systems, please visit the Interactive ISO System

(IIS)

WRAPPING UP

Easy way to get your foot in the door

Well publicized & sought after product

Great retention tool

Flexible program and card options

Creates traffic for your merchants

Great return on investment

Low start-up cost

Completes the “Payment suite”

THANK YOU

For additional information,you may contact the Gift Card Department at:

000-000-0000Or email support@graphitepayment. Com

Put the most powerful retention tools in your merchants’ hands!