Sales of MEFA Gift of College Cards have exceeded USD1.49 million, with 3,677 cards purchased since the programme became available two years earlier, the Massachusetts education-financing authority reported on September 15.

Nearly 3,000 of those cards had been redeemed, and most of the redeemed funds went into MEFA U.Fund College Investing Plan accounts. The figures are cumulative programme results, rather than sales or redemptions for September alone. [S01]

The announcement also gives a view of the distribution mix. MEFA said most cards were purchased in Massachusetts stores. In-store purchases averaged USD420, compared with an average value of USD181 for online cards. It did not publish the precise number of cards sold through each channel or a comparable earlier-period series from which to calculate sales growth.

A gift that becomes an account contribution

The card lets a giver contribute without collecting the recipient's savings or loan-account details. The recipient redeems the value online and directs it to a college savings, ABLE or student-loan account. Gift of College manages the card service, according to MEFA's programme guide. [S01] [S02]

Redemption requires the recipient to create a profile and connect the selected savings plan or loan account, supplying its account and beneficiary information. The recipient then enters the gift-card number and PIN. MEFA's guide says the funds are sent to the selected account within 14 business days. This makes the card an intermediary between a retail gift purchase and an account contribution, rather than a card for buying general merchandise.

MEFA is a Massachusetts state authority established to help students and families access and afford higher education. The gift-card service sits alongside its savings programmes, while permitting transfers to eligible accounts beyond the U.Fund plan that received most of the reported redemptions. [S01] [S02]

The data behind the story

MEFA card purchases and reported redemptions

Cumulative programme counts; the redemption figure is reported only as nearly 3,000.

cards
Source
MEFA September15 programme results

The 3,000 bar is an approximate source reference, not an exact observed count. Redeemed cards are included among cards sold, so do not add the bars or calculate a precise redemption rate. Account contribution is not education spending or investment return.

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MEFA card purchases and reported redemptions (cards)
CategoryMEFA card purchases and reported redemptions
Cards purchased: 3,6773,677 cards
Cards redeemed: nearly 3,0003,000 cards

Purchase charges sit outside the recipient's value

Physical cards are sold at Cumberland Farms, Stop & Shop and CVS in Massachusetts, with an electronic option available online. MEFA's published guide lists a USD5.95 purchase charge at Stop & Shop and Cumberland Farms and USD6.95 at CVS. Electronic cards also carry a purchase fee. The recipient receives the card's full face value and pays no additional fee, according to the guide. [S02]

The data behind the story

MEFA card purchase charges by retailer

Published physical-card fees paid outside the recipient’s face value.

USD per card purchase
Source
MEFA purchase and redemption guide

Existing guide terms, not a measured programme fee-revenue total. The recipient receives full face value. Online fees are not included, and these are not recipient redemption charges.

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MEFA card purchase charges by retailer (USD per card purchase)
CategoryMEFA card purchase charges by retailer
Stop & Shop5.95 USD per card purchase
Cumberland Farms5.95 USD per card purchase
CVS6.95 USD per card purchase

The sales announcement does not disclose a fee-revenue total or the dollar value of outstanding cards. Its combination of sales, card counts, redemption counts and channel averages nevertheless provides operating evidence for an existing distribution programme, without establishing the return earned on the funds after they reach a savings account.