Gift/debit cards - Brief Article - Statistical Data Included

Discount Store News, Nov 8, 1999

A new twist to store-brand credit cards and frequent-shopper marketing programs is making its way to the video industry in the form of innovative new shopping cards.

Musicland Stores' electronic gift card, launched Nov. 1, is leading the way to the future of home entertainment video and software sales. The new card combines elements of in-store shopping and cyber-shopping, since it can be given as a gift certificate or used to pay for merchandise such as DVDs and VHS videos in the company's stores as well as on its Web sites. The Musicland card is also versatile. It can be purchased in any denomination and can be reloaded with new spending money at stores or on any of the company's retail Web sites.

Blockbuster expanded its gift card offerings last year. In conjunction with the American Film Institute, Blockbuster rolled out a special-edition API 100 gift card in $10 denominations. But despite its good looks--each card has an image from a classic American movie--the AFI 100 gift card can only be used under several restrictive conditions: It may not be exchanged for cash; users will not receive change for purchases under $10; sales tax is not covered by the card; and holiday '99 is the card's last full winter holiday season since it will no longer be valid after Dec. 31, 2000.