Smart SpendingSmart Spending

ATMs may soon sell gift cards

Visa is conducting a test in Arizona to see if gift cards dispensed by ATMs will catch on with customers.

By MSN Money Partner Jan 13, 2012 3:20PM

This post comes from Jeanine Skowronski at partner site MainStreet.


MainStreet on MSN MoneyNext holiday shopping season, gift cards may be even easier to purchase. Visa is testing a pilot program that allows consumers to purchase gift cards from drive-through and walk-up ATMs.


The program, set to last through March, is being conducted in partnership with Better ATMs, which is selling Visa-branded gift cards at select machines belonging to three credit unions in Phoenix, Ariz.


Hyung Choi, Visa's head of U.S. prepaid products, says that adding gift cards to ATMs "provides a new way for consumers to have access to Visa-branded prepaid options." He cites the growing popularity of gift cards as another reason for testing the program. Post continues below.

The gift cards included in the pilot program are $25 non-reloadable prepaid products that are slightly thinner than the ones you would find in stores. (As a side note, this smaller size seems to represent a pro and a con: It will make it easier to fit the cards into your wallet, but harder to disguise the fact that the gift you're giving was purchased at a local ATM.)


Visa says the results will ultimately dictate if the offering is added at other financial institutions in wider markets. It will also influence whether reloadable prepaid products will also be made available at ATM machines.


"At this point, it hasn't been determined," Choi says. "But you could think about the idea that any (applicable) prepaid card can be dispensed through an ATM."


Would you take advantage of the opportunity to purchase gift cards at your local ATM? Let us know in the comments below.


More on MainStreet and MSN Money:



Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.