News Releases

Good news for Santa and his chiropractor!! That back-breaking bag of holiday presents will be a lot lighter this year thanks to a growing preference by Canadians to give and receive gift certificates during the holiday season.

According to The Mosaik MasterCard Holiday Survey of Canadian credit card holders, released by BMO Bank of Montreal, 72 per cent of respondents said they would be "excited" to receive a gift certificate "because they'd finally get something they liked." Only 13 per cent of respondents said they would be disappointed "because the giver didn't know or care about them."

Fortunately, those who GET are in synch with those who GIVE. Sixty-nine per cent of respondents said they would consider giving gift certificates, mostly because they feel it would allow the recipient to choose something they really wanted or needed.

Mike Kitchen, Vice-President, Mosaik MasterCard, said he's not surprised by the findings, and suggests that consumers' natural appreciation for value, flexibility and convenience may also be influencing their gift preferences. "People are busy and they want to spend their time and money wisely," he explained. "But they also want to give and receive gifts that they know will be truly enjoyed.

"We can't help you choose the perfect gift for grandma, but we can help you save time and money with some innovative ways to shop for gift certificates," said Mr. Kitchen. "For example, Mosaik MasterCard cardholders who collect AIR MILES reward miles can go online and redeem their reward miles for gift certificates from many retailers across the country. This is a convenience you'll enjoy whether you leave your shopping to the last minute or wrap it all up weeks in advance," he said.

Canadians are Early Bird Shoppers
Mr. Kitchen noted that although Canadians place gift certificates high on their wish lists, they still take the time to plan their shopping carefully. In fact many Canadians indicated they typically plan for an early start to their shopping, with 41 per cent saying they begin to shop one to three months in advance and 13 per cent saying they start earlier than that. Thirty-seven per cent indicated they would wait until one to three weeks before the holidays and 5 per cent said they are really leaving it to the last minute, planning to shop just one day in advance. More than three times as many men than women leave their shopping to the last day.

Making a list and checking it twice - more women than men plan to set a holiday budget
For many Canadians, there is more to planning a holiday shopping excursion than mapping a route to the nearest mall; Canadians like to budget. The Mosaik MasterCard Holiday Shopping Survey found that 52 per cent of respondents plan a holiday shopping budget. Of those that budget, almost half stick to their budget or spend less than planned. Interestingly, despite the fact that more women than men plan to set a budget, women are more likely to overspend than men.

Mr. Kitchen said that planning and sticking to a budget is an important strategy if you want to avoid the 'statement shock' of post holiday bills and it appears most Canadians pay close attention to what they spend. According to the Mosaik MasterCard Holiday Survey, 75 per cent of respondents said they are not surprised when their bills come in because they know exactly how much they have spent. Only seven per cent of respondents claimed to be surprised that they have spent so much, while four per cent, perhaps with tongue in cheek, tend to believe the best place for holiday shopping bills is under the mattress!

Thirty-seven per cent will spend between $1,000 - $3,000
Spending this season will vary from less than $100 to more than $3,000, with the majority planning to spend somewhere in between. Thirty-seven per cent of respondents have budgeted between $1,000 and $3,000 this year and 28 per cent indicate they plan to spend between $500 and $1,000 on holiday gifts. While spending expectations are generally in line with last year, 35 per cent said they would spend more if they had a lower interest rate on their credit card.

"This is the time of year when people allow themselves to spend more than usual," said Mr. Kitchen. "Given that credit cards represent the most popular method of payment for holiday gifts (37 per cent), one of the easiest ways to reduce the impact of a little 'seasonal overexuberance' is to shop with a credit card that applies a low interest rate on your post-holiday credit balances. If you've already used a card with a high interest rate, transferring the balance to a low-interest-rate card can save you a significant amount."

For example, Mosaik MasterCard offers a low interest rate option with a 7.9 per cent interest rate on balance transfers and cash advances and only 12.9 per cent on retail purchases.

Reward redemptions figure prominently in holiday shopping plans
The survey also uncovered that one in five participants chose their credit card specifically because of its rewards program features. So it's no surprise that 68 per cent of Canadians who collect rewards will be redeeming some this holiday season:

• The practical Canadian will be looking for household items and other merchandise (26 per cent)
• Generous Canadians will be acquiring holiday gifts for others (24 per cent)
• The travel bug will infect some Canadian's this holiday season (17 per cent)
• Those that need a holiday stress-reliever will be looking for a holiday gift for themselves (7 per cent)
• And those looking for a break from the hustle and bustle of the season will redeem their rewards for some form of entertainment: (7 per cent)

In spite of the appeal of rewards, 64 per cent of those polled indicated they do not shop strategically in order to maximize the number of rewards that their purchases can earn. In fact, most Canadians have more than one type of rewards program, which, according to Kitchen, can actually make it more difficult to accumulate enough rewards on each card to be worthwhile.

"You'll be able to get more out of your rewards this holiday season if you only collect one type of rewards program," said Mr. Kitchen. "It's best to choose a program that is accepted at many different locations, such as one that gives you AIR MILES rewards. That way, each time you use your card, you are putting it towards your goal -- whether it's a holiday vacation to Whistler or a trip to the movies.

"The best way to save money and extend your purchasing power this holiday season is to use a credit card that gives you both a low-interest-rate option and a reward program that truly optimizes every dollar you spend. Mosaik MasterCard is the card that gives you the best of both worlds," said Mr. Kitchen.

The Mosaik MasterCard Holiday Survey was conducted by Synovate from October 27 to October 31, 2004. Synovate's TeleNation survey consists of 1,001 interviews, half male and half female. It uses random dialing based upon all published telephone directories in Canada. Findings are accurate to within plus or minus 3.2 per cent, ninety-five times out of one hundred.

About Mosaik MasterCard
Mosaik MasterCard, offered exclusively from BMO Bank of Montreal, allows customers to build their own customized cards by choosing and paying for only the rewards, features and interest rate plan they want. Customers can also re-build their cards by changing the features as their needs change without having to replace the card or apply for a new one. BMO introduced its newest option, the Mosaik MasterCard Gold WestJet 1/$15 AIR MILES Reward Option in May 2004. Unlike other credit cards that offer a limited selection of pre-bundled options, Mosaik MasterCard lets cardholders choose from a variety of individual features such as the AIR MILES Reward Program or a CashBack Reward Program, Travel Protection, Travel Medical, Concierge Service and either a No Fee or Low Interest Rate Plan.

Mosaik MasterCard card is accepted at more than 30 million locations worldwide. The Mosaik MasterCard website is bmo.com/mosaik.

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