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Post office to sell gift cards

Post office to sell gift cards

by Terri Gruca

Bio | Email | Follow: @TerriG_KVUE

kvue.com

Posted on January 6, 2011 at 10:37 PM

The U.S. Postal Service is hoping to cash in on what has become a growing consumer craze-- gift cards.

The cards will begin to be tested in about 2,000 locations starting in May and be issued by banks or credit card companies for the purchase of any item, not just postal products.

You’ll be able to buy the gift cards in set amounts between $25 and $50 and then variable amounts of up to $500. There will be fees attached to these cards anything from $3.95 to $5.95 which you’ll pay when you buy the cards.

The USPS is looking to find sources of revenue. Smaller mail volume and rising costs caused $2.8 billion in losses last year and some speculate this year’s losses could reach $6 billion.

Gift card sales are moving in the opposite direction. They rose five percent in 2010. TowerGroup expects gift card sales to top $100 billion dollars in sales by 2012.

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