'Tis the Season to Beat Holiday Shopping Anxiety; Visa Advises Consumers on Smart, Stress-Free Gift Choices.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 2, 2003

Attention Holiday Shoppers! Visa Gift Cards Fit Any Budget, Any

Taste; The Ideal Solution for the Holiday Season

Does the approaching holiday season and accompanying shopping frenzy have you feeling a bit anxious? Do you loathe the annual ritual of making decisions about not only what to buy for everybody on your shopping list, but also how much to spend so you can stay within your budget? You are not alone. According to recent research by Visa USA, shopping and budget constraints are the biggest contributors to consumer stress during the holidays.

For consumers, a lack of time and poor budgeting often gets in the way of making the right gift decision. Visa research has shown that 40 percent of consumers have no specific budgeting process for the holidays, and only 21 percent budget for other non-gift-giving-related holiday expenses such as travel.(a)

Savvy consumers and experts agree that the one smart choice to avoid holiday tension is the Visa Gift card. Prepaid gift cards are one of this season's hottest trends -- a welcome alternative to the traditional non-returnable, ill fitting, or otherwise undesirable holiday gift. Retail experts Bain and Co. estimate that the gift card market will balloon to $42-45 billion this year -- a 15 to 20 percent increase over 2002.

According to financial planner Candace Bahr, co-founder of the Women's Institute for Financial Education, and one of the top ten brokers in the United States, "The holidays should be a time for fun and family gatherings...not shopping anxiety. A great deal of the stress comes from financial pressures and finding gifts to accommodate everyone's tastes. It is no surprise that many people feel overwhelmed. Gift cards are a great way for consumers to relieve some of this tension. This purchase is guaranteed to please both the recipient and your bank account because gifts come in virtually any amount to fit any budget."

"Visa Gift cards provide a smart choice for anxious shoppers striving for a hassle-free gift-giving experience," said Steve Diamond, vice president of prepaid products at Visa USA. "The Visa Gift card puts the choice in the hands of the gift card recipient by providing instant access to literally thousands of gift ideas. In a snap, a gift card becomes the perfect stocking stuffer, a last minute present, or the perfect gift for that person on your list that 'has everything.'"

Easy on the Wallet ...and the Mind

Visa Gift cards fit any budget because they can be preloaded with whatever amount the giver wishes to spend or are available in preset denominations beginning as low as $25. Unlike a retail gift card, the Visa Gift card can be used at millions of retail outlets around the world or online wherever Visa debit cards are accepted, allowing consumers to shop where they want, when they want and for what they want.

Gift card recipients can also avoid the post-holiday hysteria of long lines at retail outlets returning unwanted gifts. Retailers also benefit from fewer gift returns and can enjoy a post holiday boon as Visa Gift cardholders begin redeeming their gift cards in the year, thus helping extend the traditional holiday spending season.

Best of all, the Visa Gift card provides all the benefits and security cardholders have come to expect from Visa consumer payment cards, so unlike cash, the Gift card can be easily replaced if lost or stolen and is fully protected under Visa's zero liability policy.

Gift Card Fees

Consumers should be aware that Visa Gift cards may come with certain nominal fees that are managed by the issuing financial institution. Typical fees for gift cards may include card issuance fees and account maintenance fees. Visa does not set or monitor fees and these are disclosed to consumers through the issuing financial institution.

In comparing fees on gift cards with the giving of traditional gifts of merchandise, checks or cash, it is important to remember the following:

Issuance fees include the card fulfillment, customization, packaging, insurance and shipping to the gift card recipient. When compared to the time and cost of shopping for a gift, packaging, insurance, postage and waiting at the post office to mail it during the holidays, the value and convenience of the Visa Gift card quickly becomes apparent. Gift cards also offer the benefit of complete consumer protection in the event the card becomes lost or stolen, something not available when sending gifts of cash or check.

Account maintenance fees may occur after the first six months from the date of purchase to help cover the ongoing costs of customer service available to cardholders such as the ability to call in and check your balance. Visa research indicates that most gift card recipients spend the entire balance on their cards during the first three months making it unlikely that most cardholders will experience a monthly maintenance fee.

How to Order

Ordering the card is easy. It can be done by logging onto www.visa.com to access one of many issuing financial institutions or Visa partner companies offering the Visa Gift card this holiday season. Several Visa member financial institutions or partners currently offer Visa Gift cards, many of which can be personalized and are available in a variety of designs.

About Visa

Visa is the world's leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. Nearly 21,000 financial institutions worldwide rely on Visa's processing system, VisaNet, to facilitate $2.5 trillion in annual transaction volume with virtually 100 percent reliability. Consumers in more than 150 countries carry more than one billion Visa-branded cards, accepted at millions of locations worldwide. Within the U.S., nearly 14,000 financial institutions issue 396 million Visa cards, accounting for more than $1 trillion in annual transaction volume. Visa offers a trusted, reliable and convenient way to access and mobilize financial resources -- anytime, anywhere, anyway. For more information about Visa, please visit www.visa.com.

Editor's Notes:

An image of the Visa Gift card is available upon request.

(a) Visa USA consumer research, conducted July 2003.