TSYS® Supports Nordstrom Gift Cards on TS2® System
Columbus, Ga., Nov. 15, 1999 - Total System Services, Inc.® (TSYS®) (NYSE: "TSS"), today announced it will support gift cards issued by Nordstrom, Inc. (Nordstrom) (NYSE: "JWN"), which will be featured during the holiday season in Nordstrom stores. Nordstrom National Credit Bank (NNCB), a wholly-owned subsidiary of Nordstrom, Inc., with headquarters in Scottsdale, Ariz., will service the Nordstrom Gift Cards using the TSYS TS2 Processing System. TSYS, NNCB and Nordstrom, Inc., developed the gift card functionality to allow flexibility and to accommodate Nordstrom specifications. NNCB also issues and services a Nordstrom proprietary card, plus a Nordstrom Visa® Classic card and Platinum card, offering shoppers rewards.
In October 1999, Nordstrom officially launched gift cards in three designs from which customers may choose. The Nordstrom Gift Card is activated real-time at the register when the card is purchased. Purchases made with the gift card reduce the value of the card until it reaches a zero balance. Nordstrom Gift Cards may also be re-loaded with additional value at any time.
Prepaid cards are a rapidly growing segment of the card market. In 1997, more than 1 billion prepaid cards were printed, and since 1996, gift card sales have grown between 11 and 15 percent annually. It is estimated there will be 840 million gift cards issued per year by 2005.
To capitalize on the growth trend in prepaid and stored value cards and to support its clients’ initiatives, TSYS formed the stored value solutions group earlier this year. TSYS also signed an agreement to purchase a 40 percent equity position in Prepaid Technologies, LLC, a product development and sales company for prepaid and stored value cards located in Birmingham, Ala.
TSYS Vice President Tim Johnson leads the stored value solutions team and is excited about the potential that lies ahead for expansion in the stored value market.
"The research shows that stored value cards will have a major influence in the future of the card market," Johnson said. "Stored value cards are attractive because of their many uses. From payroll to gift to employee incentives, stored value cards offer convenience and ease of use across many segments of the population. We have initiatives in place that will allow us to fully support multiple stored value products for our entire client base."
TSYS is a global processor of data and transactions for credit, debit, commercial and private-label card issuers. TSYS’ sophisticated systems offer online accounting, data processing, electronic commerce services, portfolio management, account acquisition, credit evaluation, risk management and customer service. Through its family of companies, TSYS services the entire lifecycle of accounts, processing millions and millions of accounts for consumers who use their cards any time, anywhere. Based in Columbus, Ga., TSYS (www.totalsystem.com) is an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: "SNV") (www.synovus.com) named "The Best Company To Work For In America" for 1999 by FORTUNE magazine.
Contacts:
Danita Gibson-Lloyd
Corporate Communications Manager
ph. (706) 649-5578
dglloyd@totalsystem.com
Kimberly Knight
Corporate Communications Specialist
ph. (706) 644-1218
kiknight@totalsystem.com