Survey Shows 86% of Children 5-14 Have Given, Received Gift Cards

Business Wire, Nov 1, 2005

LOUISVILLE, Ky. -- The majority of children aged 5-14 have received or purchased gift cards, according to a survey commissioned by Stored Value Systems (SVS), one of the nation's leading suppliers of gift cards. This is the first year that SVS has measured the younger age group in its annual survey of usage.

The findings showed that four out of five parents say that they have purchased a gift card for their child or that their child has received a gift card. In fact, parents say they purchased slightly more than three gift cards for children, both for their own or for others, in the past year with an average value of $29.

"We wanted to explore usage among a younger age group and thought the results were intriguing," said Bob Skiba, SVS executive vice president and general manager. "For example, some parents said they like gift cards because they can teach a child how to budget and manage money."

Other key findings include: --Exposure to gift cards is significantly higher among children ages 9 to 14. --There are few differences in gift card behavior between boys and girls. --On average, parents have purchased two gift cards for their own child in the past year. --Four out of five gift card purchases for children are planned, as opposed to impulse, buys. --Almost three-quarters of parents say choice of designs is important. --According to parents, children like gift cards because they can shop when and where they want. --Seven in 10 children spend gift cards within one month of receiving them. --Parents think gift cards would be highly appropriate for rewards for academic and other achievements. In fact, behind birthdays and the winter holidays, this was an important reason for purchasing gift cards (37%).

The survey was an independent, random national web survey of 755 parents with children aged 5 to 14 in their households or adults who have purchased a card for a child aged 5 to 14.

SVS is a subsidiary of Brentwood, Tenn.-based Comdata Corporation, which is a subsidiary of Minneapolis-based Ceridian Corporation.

Editor's note: A copy of the survey highlights, as well as graphs showing three key findings, are available electronically by contacting Deby K. Samuels at dsamuels@comdata.com or Heather MacDonald at heather.macdonald@dvl.com

About Stored Value Systems

Since introducing the first-ever magnetic-striped retail gift card to shoppers in 1995, Stored Value Systems, Inc. (SVS) is one of the world's leading providers of electronic gift cards and other card-based transaction programs. International retailers rely on SVS to create customer loyalty, increase sales and strengthen their competitive position in the retailer marketplace. Headquartered in the United States, SVS is a wholly owned subsidiary of Comdata(R) Corporation. For more information, visit www.storedvalue.com.

About Comdata

Comdata(R) Corporation (www.comdata.com) is a leading business-to-business issuer and processor of payment cards, primarily in the retail and transportation industries. Comdata's range of products and services include fleet, fuel, purchasing, T&E, payroll/reimbursement, EBT, gift and loyalty cards and processing. A full-service merchant processor, Comdata's platforms support both its proprietary card networks as well as processing for any card tender a merchant may accept. Headquartered in Brentwood, Tenn., Comdata employs more than 1,500 people nationally and internationally. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).

About Ceridian

Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe. Ceridian is one of the top human resources outsourcing companies in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and employee advisory programs. 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. www.ceridian.com