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PUBLISHED AS A PUBLIC SERVICE BY THE CREDIT UNION CENTER OF AMERICAN INCOME LIFE INSURANCE COMPANY, P.O. BOX 2608, WACO, TX 76797.
CALL THE CREDIT UNION CENTER HOTLINE AT 1-800-278-6661 WITH SUGGESTIONS, QUESTIONS AND REQUESTS. VISIT OUR WEBSITE AT: WWW.AILIFE.COM
u February 2008 u
The Prepaid Debit Card:
Seven Marketing
Strategies
u
From Gift Card To Travel Card ...
It’s Seven-Cards-In-One
And
A Very Powerful Product
SP
EC
IAL
 
AN
NIV
ER
SA
RY
 IS
SU
E!
I
 
I
 I
!

u The Prepaid Debit Card: Seven Marketing Strategies u
u February 2008 u
2 u
The most recent holiday shopping season proved two things: 
u Sales were down.
u Gift cards went through the roof.
As expected, gift cards and Internet shopping were the only two areas to
gain market share. Even electronic gadgets didn’t live up to expectations.
So obviously a Credit Union should wonder, “Isn’t it time to introduce (or
vigorously market) a prepaid debit card?” Yes, for seven reasons — and
they coincide with the seven key uses for the card … making it “seven-
cards-in-one.”
Let’s examine each “card.”
Card #1 — IT’S A GIFT CARD. The latest craze is the realization that a gift
card for cash — unlike one from Macy’s or Target — can be used anywhere.
Consequently, it has so much more value.
The Members Group, affiliated with the Iowa Credit Union League,
reported that for the recent holiday season they had 55 Credit Unions
selling 15,000 cards with an average load of more than $90 per card.
America First Credit Union in Utah almost doubled their 10,000 cards of a
year ago. The new twist: a personalized gift card with the giver’s photo.
Stan Hollen, CEO of CO-OP Financial Services, reported that prepaid gift
cards have become one of the fastest-growing payment methods for
consumers. To help CUs remain apace, CO-OP Financial Services has
developed their own “CO-OP GiftCard,” designed to be convenient and
competitively priced for Credit Unions and their members.
Card #2 — IT’S A TRAVEL CARD. Newspaper articles across America, as well as
overseas, have now started touting the advantages of using a prepaid Visa or
MasterCard for travel. One of the foremost newspapers in London, the
Independent, stated last May that this was the ideal way of “taking cash for
holiday travel.” The paper explained, “These cards have been likened to a
hybrid of a debit card and a traveler’s check.” The Member can use them to
get cash at an ATM, charge a purchase, or pay for dinner.
More than a decade ago, Patelco Credit Union of San Francisco began
marketing its CU debit card and CU credit card as “travel cards.” The
suggestion was to overpay your VISA card and then use that instead of
travelers’ checks. Today the easier way is to just get a prepaid card.
The latest craze is
the realization that 
a gift card for cash
— unlike one from
Macy’s or Target —
can be used
anywhere and
therefore has so
much more value.
One of the foremost
newspapers in
London, the
Independent, 
stated last May 
that this was the
ideal way of “taking
cash for holiday
travel … These
cards have been
likened to a hybrid
of a debit card and 
a traveler’s check.” 
u The Prepaid Debit Card: Seven Marketing Strategies u
u February 2008 u
u 3
Card #3 — IT’S A CARD FOR BUSINESS. Small businesses have begun to
utilize the prepaid debit card for employee expenses. It automatically gives
you a record of expenditures as well as a limit on spending. After revamping
its own procurement process by means of a specially designed card,
Teachers CU of South Bend, Indiana, is now offering this added
convenience to its select employee groups. Its “Purchase One” card,
created by WesCorp’s Procura CUSO, allows a CEO to authorize employees
to make business purchases from any merchant, streamlining the
management process of authorizing expenses, spending limit adjustments,
requisitions, and purchase orders.
Card #4 — IT’S AN EXPENSE CARD FOR STUDENTS. Parents are finding that
the prepaid debit card is the ideal way to handle expenses for the student in
college (as well as for some in high school). It’s easy. It’s convenient. And it
sets an allotment limit that can’t be overspent.
Card #5 — IT’S A HOUSEHOLD CARD. Credit Unions have now started
offering the prepaid debit card as the perfect way to itemize expenses that
previously were handled by putting money into a “kitty.” And recently,
organizations, clubs, and other groups have begun to use the prepaid card
instead of messy recordkeeping and to alleviate problems connected with an
office or club “kitty.”
Card #6 — IT’S A CREDIT CARD TO HELP LESS FORTUNATE MEMBERS. By
using a prepaid debit card, Members who lack the credit rating to obtain 
a regular VISA or MasterCard can still enjoy many of the same advantages
those cards offfer: shopping, obtaining cash at ATMs, renting autos, etc.
Card #7 — IT’S THE VERSATILE CARD. The potential of the prepaid card is
limited only by the creativity of the Credit Union or the Member. Some
employers are using it as a unique and “more tangible” method of giving
out bonuses. Parents have used it as an educational tool to teach fiscal
responsibility to their children. The options, of course, are endless.
THE KEY IS IN THE MARKETING
Though debit cards date back to the 1970s, they have only recently gained
consumer acceptance and begun to skyrocket. For the Credit Union, these
cards are used to secure Member loyalty, offer cross-selling opportunities,
and help cement your CU as a Member’s primary financial institution. They
can easily become one of your CU’s most powerful marketing tools.
continued on page 4
The potential of 
the prepaid card is
only limited by the
creativity of the
Credit Union or 
the Member.
As a “business card,”
it allows a CEO to
authorize employees
to make business
purchases from 
any merchant,
streamlining the
management process
of authorizing
expenses, spending
limit adjustments,
requisitions, and
purchase orders.
u The Prepaid Debit Card: Seven Marketing Strategies u
u February 2008 u
4 u
However, as Karen Fry, Director of Marketing for Card Services at Credit
Unions, Inc. (CSCU) in Clearwater, Florida, has stated, “Just like all 
the other products you offer, debit programs don’t just sell themselves.” 
The CU has to market them, promoting all seven of the uses and 
advantages listed above. 
CONCLUSION
Research by VISA International has shown that 58 percent of those who use
debit cards have stated they would switch institutions if their debit card
was discontinued.
That’s quite an endorsement for one of your services. So now is the time 
to either institute the prepaid debit card or begin marketing it with its
multitude of uses. u
The advice, suggestions, ideas, and information herein are offered strictly for educational purposes.
The Blue Paper is not intended to provide legal counsel, nor is it a substitute for legal counsel. Consult
an attorney if you require legal advice.
continued from page 3
Research by VISA
International has
shown that 58% 
of those who use
debit cards have
stated they would
switch institutions 
if their debit card
was discontinued.
Recent issues include:
 January 2008
“2008 — THE YEAR FOR CUTTING EXPENSES”
The eleven steps that have proven effective cost cutters for many Credit Unions.
There could hardly be a more appropriate time!
 December 2007
“YOUR CALL CENTER: THE MOST CRITICAL OF YOUR FIRST LINE CONTACTS”
It’s a service and a profit center … and there are seven steps to help it 
reach its full potential. How does your call center compare?
 September 2007
“THE PERFECT TIME FOR CREDIT UNIONS TO OFFER REVERSE MORTAGES”
Housing sales are plummeting, our membership is aging, and HECMs 
are in demand. See what other Credit Unions are doing.
F
Just contact your AIL representative for the topic of your choice.
Your
can now offer you 
back issues of The Blue Paper.
THE AIL CREDIT UNION CENTER
CU 02/08