Stock market is up, interest rates are down and credit cards are all around. The 1998 Christmas shopping season is poised to be the hottest ever. While retail sales are expected to climb 8% this year compared to last year, one thing is for sure: there will be an epidemic of plastic fever.
American consumers will rack up $83.0 billion on major credit cards, $14.3 billion on store credit cards and $13.2 billion on debit/check cards between Thanksgiving and Christmas. During the 28 day period between the holidays, Americans will swipe their major credit cards 1.2 billion times, store credit cards 240 million times and debit cards more than 300 million times. Major credit cards alone will average $3.5 billion in purchases per day or $145 million each hour. For the peak shopping days of Nov 27, Nov 28 and Dec 24, consumers will use their credit cards more than 6,000 times per second, generating charges of nearly $450,000 per second.
When it is all said and done Christmas Eve, Americans will use plastic payment cards nearly 1.8 billion times for transactions totaling $110.5 billion.
Californians will be the most active card users, charging $14.1 billion on major credit cards and store credit cards. New Yorkers will charge $8.3 billion; Texans $5.4 billion; Floridians $6.9 billion and residents of Illinois will charge $4.9 billion to major credit cards and store credit cards.
Cardholders in the Northwest will lead the nation regionally by posting $20.7 billion to their charge plates. Other regions: Southeast $20.5 billion; Pacific $18.6 billion; Great Lakes $15.9 billion; Southwest $8.1 billion; Great Plains $6.3 billion and the Mountain region $6.2 billion.
Debit cards, issued by VISA or MasterCard, will continue to grow in popularity this holiday season as consumers will use such cards 354 million times, debiting their checking or savings account for an average of $37.29 per transaction. Last year Americans used debit cards approximately 230 million times during the Christmas shopping season. Debit card usage is growing a whopping 53% annually.
To add to card fever, VISA, MasterCard and American Express are piloting prepaid gift cards this year. Several national retailers have also launched prepaid gift cards. Aimed at replacing traditional gift certificates, plastic gift cards offer consumers more convenience and flexibility. The gift card market potential has been estimated at $13 billion annually.
SWIFTGIFTCARD
MasterCard and KeyBank are testing a new prepaid gift card through a firm in Illinois.The cards are good anywhere MasterCard is accepted, except ATMs. The prepaid SwiftGiftCard is now available in denominations of $25, $50, $75 and $100, embossed with the recipient’s name. If you’re feeling especially generous, duplicates can be ordered in any denomination with a single recipient’s name. SwiftGiftCards are accompanied by an 8-1/2 by 11 personalized card, available in five different designs for a variety of occasions.
The SwiftGiftCard can be charged to your major credit card, and will be good for three months after the date it is issued, with the expiration date clearly shown on the front of the card. There is a handling fee charged to the gift-giver of $6.95 to $8.95, depending on the denomination selected, and the cards will be mailed four days after the order is received. More information is available by visiting www.swiftgiftcard.com.
VISA GIFT CARD
The nations's largest credit card issuer, Bank One/First USA, is now offering the first VISA Gift Card. The cards may be used anywhere VISA is accepted. The only catch is you must be a First USA cardholder to purchase the new card. For VISA Gift Cards valued under $200 there is a $5 service fee. For cards loaded with $200 or more there is no fee. The VISA Gift Card can be sent directly to the recipient or to the purchaser, within 10 days of the order. Expedited delivery within four business days is also available for an additional fee. Each card expires six months after issue, with any remaining balance at expiration being refunded to the recipient. For more information: call First USA on 888-378-GIFT.
AMERICAN EXPRESS GIFT CARD
Not to be outdone American Express has entered into the gift card market, albeit in a different way. American Express is piloting gift cards with Tower Records. Cards issued at a Tower Records sales counter can be purchased for any amount from $10-$100. Cards issued from Tower Records' Website and through its call center are available in denominations of $10, $25, $50, $75 and $100. The cards have no expiration date. American Express is targeting the specialized gift cards to its cardholders. For more information: http://www.towerrecords.com.
e.Card VISA
Online shopping will also be hot this year. First USA has launched a card designed to reward online shoppers. First USA Platinum VISA while offering 5% cash back for all online purchases from participating merchants. There are no points to be accumulated, nor spending hurdles to be met. In addition, cardmembers have a variety of timesaving service options available to them, such as electronic statements, online bill payment, online account access and online customer service. Some of the participating online merchants are Amazon.com; CosmeticsCounter.com; GardenEscape.com; FlowersUSA.com; ValueAmerica.com; eToys.com; Dean-Deluca.com; Fragrancecounter.com, Reel.com and 800 Spirits.com.
The First USA e.Card VISA credit card can be applied for online at www.getecard.com, or by calling 800-759-5734.
SANTA PHONE CARD
Thanks to Tri-Star Marketing Group and Cable and Wireless, children will be able to call Santa at the North Pole with their Christmas wish list on the “Call Santa and Rudolph” phonecard. Here’s how it works: The child dials the toll-free number on the back of the phonecard. Santa and Rudolph talk to the child by way of a pre-recorded message, asking the child what he/she wants for Christmas, recording the message. Later the parent can call a toll-free number to hear their child’s wish list. Both the child and parent may call their toll-free number two times. The “Call Santa and Rudolph” phone card is the first to be designed specifically for children, sells for $4.99, and can be hung on the tree as an ornament after use. For more information, contact Tri-Star Marketing Group at 888-266-2100.
MAGIC MOMENTS
Some magic has just been added to your VISA card. Every day between now and December 31, (www.visa.com) will randomly select a one-second magic moment when VISA card purchases are free regardless of the amount. For VISA Magic Moments the premise is simple: if the Visa processing time stamp for a cardholder’s purchase matches that day’s randomly selected, one-second VISA Magic Moment, they win. The winning cardholder will receive a special “VISA Magic Moments Winner” credit message on their next monthly VISA statement. In addition to this magic, during the VISA Magic Moments campaign, Dell Computer (www.dell.com/visa) is offering a “moment” every day for purchases via the Internet; Best Buy is featuring a “moment” every hour on November 27 and 28; and Giant Food/Super G and Jo-Ann Fabrics & Crafts are offering a bonus to cardholders who’s winning purchase was made at their store locations. For more information: call 800-266-6712, or visit www.magic-everyday.com.
THOSE DAMN STATISTICS There is no end to the flood of financial statistics for this year's holiday shopping season. We leave you this month and this year with an endless list of those damn statistics from a variety of sources:
*consumers will totally spend $174 billion this holiday season.
* consumers are expected to spend more - 8% more - this holiday season than last, an average of $1,342 in 1998 over $1,233 in 1997.
*46% of adults will splurge on a family member or friend this year.
*89% of women and 79% of men are likely to look for sales.
*26% of men take advantage of gift-wrapping services versus only 8% of women.
*72% of consumers will be buying gifts for children this year, 95% of those buying toys.
*47% of pet owners will buy a gift for their pet.
*27% will buy a gift averaging $54 for their boss.
*29% say they are most likely to shop online for their kids.
*86% have a specific product in mind when they shop online.
*60% have shopped online in their pajamas.
*84% have shopped online with their shoes off.
*36% have shopped online while eating a meal.
*45% of online shoppers do their shopping weeknights between 5:00 PM and midnight.
*44% of shoppers plan to do their holiday shopping at department stores.
*80% say they will visit a discount store for some of their holiday shopping.
*consumers expect to buy about 25 presents this holiday season, with one in five buying more than 40.
*40% of consumers state they will purchase a gift certificate for one or more recipients.
*62% of the American population looks forward to the holiday season.
*41% confess that they find Christmas shopping more stressful than going to the dentist.
*34% of the population say they worry about money during the holidays.
*42% of the population expects to gain three to five pounds throughout the holiday season.
*33% say their favorite baked good was pumpkin pie, with only 8% selecting fruit cake.
*consumers will charge an average of $34,309 per second to major bank credit cards.
*consumers will charge an average of $5,911 per second to store credit cards.
*consumers will charge an average of $5,456 per second to major debit cards.
# # #
