Overview
So, you’ve decided that you want to start promoting gift cards for your business, but have lost yourself in the myriad of details and options that accompany the customization process. You’re looking for a resource that’ll explain each option all in one location, with easy to understand paragraphs. Well….look no further.

But first, a quick recap of what gift cards are…

Gift cards are produced using stored value technology on magnetic stripes. For instance, a customer purchases a gift card for a specific value and this amount is recorded as “stored value” or “prepaid” in a host database, and then encoded in the magnetic stripe on the back of the card. When the card holder uses the gift card, the card is swiped through a POS terminal and the transaction data on the magnetic stripe is read, the purchase information is confirmed, and the purchase by the card holder is authorized. The cost of the purchase is then electronically debited from the stored value on the card and the unused portion of the value remains stored on the magnetic stripe for the next time the card is used.

Image
Gift cards are available in a host of attractive and appealing images or designs. Innovative ideas have been introduced that include card designs with built-in headphones and speakers, and gift cards that look like toys, large coins and stickers. When choosing artwork, customers have the option of choosing from existing images that are supplied by the manufacturer or if they prefer, they can submit their own designs. However, when choosing their own designs, customers must find out the accepted artwork format that is used by the chosen manufacturer.

Color
CMYK, also known as the colors cyan, magenta, yellow and black, is the name of one of the methods used to print cards in practically any color combination. This method is used predominantly for pictures and other art work.

Another technique used is called Spot Color, which is also known as Pantone Color. Spot Colors use premixed links to create a precise color. This technique will be used when:

1. a client requests a specific color that can’t be reproduced using the CMYK method;
2. the client wants metallic coloring; or
3. the client’s design calls for only one to three colors.

A vector-based application must be used in order to use spot colors and only Pantone Solid Coating colors can be used with spot coloring. A mixture of spot colors and CMYK can be used but this process costs more because it involves the use of additional print heads.

Sizes
A standard size for gift cards is 3 3/8″ by 2 1/8″, 30 mil plastic which is the equivalent size of a credit card and is designated as CR80. This is the size consumers are most familiar with and it fits conveniently into wallets and pockets. The CR80 card with key tag is the standard size that comes with one or two key tags attached that are 2 1/8″ x 1¼” in size. Hanging cards come in sizes from 7/8″ high to 5″ high.

Material
Several kinds of material are used to make gift cards. PVC is a resilient type of plastic that lasts a long time. An example of PVC use is on credit cards. Clear PVC is the transparent version of PVC that’s used on cards that have translucent areas. Composite, Laminated Plastic is a synthetic product that is used to create the most indestructible plastic card obtainable that has impenetrable plastic lamination on both sides.

Thickness
Gift cards can be printed on plastic that ranges in thickness from the thinner 12 mil cards that are as thin as business cards, to the thicker 30 mil cards which are hard plastic cards that are as thick as credit cards. There are varying thicknesses in between such as 15 mil, 20 mil and 24 mil and durability increases as the thickness of the card increases.

Mag Stripes
Mag Stripes are magnetic strips that are used to retain data on the back of the gift cards. Mag Stripes are available in two types: HiCo, which stands for high coercivity, and LoCo which stands for low coercivity. High and low coercivity represents the concentration of the magnetic elements in the stripes. The difference between these two types of magnetic strips is HiCo is for cards that are frequently used, resistant to magnetic damage and require a long life, and LoCo is for cards that are susceptible to magnetic damage and will be disposed of after a few uses. HiCo has a slightly higher per unit cost.

Mag Stripe Encoding
Mag Stripe encoding is the process in which high and low coercivity magnetic stripes are used to encode financial information on the back of the customized gift card. When the card is swiped through a reader, the encoded data can be read. The information the client requests can be encoded during the creation process of the cards or the magnetic strip can be left blank for the client to fill in at a later time.

Signature Panel
The Signature Panel is the area on the card where the cardholder can sign their name with a ballpoint pen, giving them an added level of security.

Scratch-Offs
Merchants and businesses use scratch-off cards for promotional purposes. Customers scratch off a layer of film on a certain area of the gift card to reveal information that will reward them for their patronage. The reward can be coupons, contest entries, trips, prizes, or whatever businesses want to offer and promote. They can also be used to house pin numbers for added security.

QR Codes
QR codes, or quick response codes, are paper-based hyperlinks that are scanned and decoded to give a user access to certain contact information and web destinations, usually via a cell phone. When QR codes are placed on gift cards, it gives consumers access to the specific information the merchants want to advertise.

Bar Code
Bar Codes are photographic depictions of the actual numbers and/or letters that are located immediately above or below the bar code. Type 128 and Type 39 are the types most commonly used when the cards each have a different bar code (variable data). The UPC bar code is used when the bar code is the same for all the cards.

Consecutive Numbering
Paper gift certificates had to be numbered sequentially to enable proper tracking in the event of theft and forgery. This process is still used with gift cards where values and balances are linked to the cards via magnetic stripes using consecutive numbering and this information is kept in a database.

Printing

1. Embossing is the raised letters and numbers that are printed in silver or gold on the front of the card. The information printed can be different on each card in the order (variable) or it can be the same on each card (static). With embossing, two fonts are available: OCR 18 pt that allows up to 19 characters per line, and Ariel 12 pt that allows up to 28 characters per line.
2. Foil-Stamping: Also called hot stamping, this is foil in various colors or shades that’s transferred under heat and pressure onto the surface of the card.
3. Thermal: Thermal printing is a process that uses heat to print on thermal-sensitive paper. This process provides an assortment of fonts and text styles that help to contribute to personalization.
4. Laminate: An extra layer of protection and security is added with card lamination which, along with other useful qualities, makes it completely tamper resistant.

Conclusion
The plastic gift card is the offspring of the original paper gift certificate that arrived on the market in the mid-1930s. Since its inception, the plastic gift card has evolved into elaborately designed masterpieces that eliminate some of the inconveniences of gift certificates. With gift cards, there’s no problem if the merchandise bought doesn’t cost the full amount of the value of the card since balances of cash not used remain on the card. Paper gift certificates take time to issue, track and redeem but because of value stored technology, there’s no time lost in the processing of transactions with gift cards. The most thrilling and valuable asset of gift cards is they keep merchants’ businesses alive in the minds of consumers and can sometimes inspire them to purchase higher priced items. At the same time, consumers become part of a debit card system that gives them the opportunity to purchase without owing any money afterwards.