Prezzy Card

To: Members, NZ Retailers Association

From: John Albertson

Date: 15 December 2006

Subject: Prezzy Card

You may or may not be aware that NZ Post have recently launched a Visa Gift Card under the brand of 'Prezzy Card'.

This is a Visa product.

The card is pre-loaded with a gift amount and the purchaser pays a $5 premium. That is a $20 gift card costs $25 and a $100 gift card costs $105.

The cards are redeemable anywhere Visa is accepted.

The instructions to the card holder are to use it the same way as a credit card. That is the card is swiped at the terminal and the credit button is used.

The customer needs to keep track of how much they have spent and what the current balance is.

The implications for you is that although the card is zero rated for interchange, by using the 'credit button' the transaction will still carry a full merchant service fee.

As far as we know, neither NZ Post nor Visa have told the retail community about this product - thus this advice.

We would be very grateful if you could advise us of instances of this card being presented for redemption as we are unsure of the level of uptake.  Please email Louise Evans at levans@retail.org.nz

We are not happy with the fact that a pre-paid card has a full MSF particularly when there is no interchange.

We are seeking relief from this and will keep you appraised of progress.

You can get more details at www.nzpost.co.nz/prezzycard