Thaindian News

By Ranjan Bhaduri
Jan 6, (THAINDIAN NEWS) The Post Office in USA is all set to get into the business of gift cards as it has been reported. In recent times the popularity of the prepaid cards have soared higher and the Post office officials want to utilize that opportunity and not be content with simply sending them. Starting from May this year, near about 2000 post offices will sell cards issued by Visa, MasterCard and American Express. The test will be carried out first at those post offices that sell greetings cards as well. If the plan works out well, another 3000 post offices will be included in this initiative. The National Retail Federation says that over three quarters of buyers buy gift cards when the holiday season sets in and the revenue can be quite encouraging. The independent Postal Regulatory Commission has admitted this development.

The gift cards issued by the post offices are called open loop cards. These cards can be used by the buyers at any outlet that accepts cards of the issuing entity. In the beginning cards worth $25 and $50 will be sold and variable value cards will also be rolled out later. The post office may also unveil closed loop cards but those plans have not been finalized as of now. Initially the open loop cards will be offered on a test basis.

It remains to be seen how well the buyers respond to the card selling program of the post Office. It does offer them a lot of convenience and the open loop cards are likely to be well accepted.