"The preparations need to include not just deploying marketing materials," Falk explained. "But also reminding tellers and other front line staff about the cards, helping them get used to marketing them and cross selling them."

Falk used the example of a member who might come in and ask to withdraw $100 in very crisp $20 bills. A teller who is aware of the CU's gift card opportunities might ask if the members plans to give the bills as gifts and, if so, whether they know the CU offers gift cards that offer all the protections of the Visa brand and would be better than cash.

TMG offers holiday and year-round marketing kits to help CUs market their cards. The company stressed that ease of purchase is among the most important part of the card process from the member's point of view.

"If a member has a good experience this year purchasing their gift cards from you, they are much more likely to make the credit union their source for next year's card and for any other cards which they might need during the rest of the year," Falk said.

TMG and other processors also stress that credit unions should make sure they have enough cards on hand to meet projected demand. Among the worst member experiences may be planning to purchase cards from the credit union and only finding out too late that the CU is out of them, Falk observed.

TMG's preparation help includes marketing kits, materials to help remind staff about the product, gift card refresher Web events for staff, advice on how many cards to order and ideas for different types of promotions, such as two for one offers or promotions to buy five cards and get the sixth for free.

PSCU Financial Services also offers a wide prepaid and gift card selection and has also begun helping credit unions prepare for the holidays. Like TMG, PSCU also offers credit unions a wide variety of marketing materials, all provided by Visa.

Mark Risin, PSCU's director of prepaid services, explained that PSCU tries to offer its CUs a turnkey approach to gift cards, which includes not only posters and statement inserts but also floor racks and other display stations. These can include holiday gift cards as well as generic gift cards as well.

Risin said that roughly 130 credit unions of all sizes among PSCU's clients currently offer the cards and that the marketing materials can even include press releases and radio scripts for smaller credit unions that lack the marketing expertise to be able to mount a strong advertising campaign.

Of course, both PSCU and TMG process other cards as well and the card processors are helping credit unions prepare for the holiday season in those areas as well. However, a combination of the novelty of the gift cards and some concern about economic conditions later this year has made some CUs more cautious about regular credit card promotions.

"This holiday season may turn out to be a bellwether for how long this economic downturn keeps going," Falk said.

Glenn Schechter, director of credit services for PSCU, said the CUSO's efforts include marketing and promotions activities, targeted rewards offerings, programs to increase penetration, holiday specific activation and usage campaigns, and partner-merchant discount offers. But he expected that there may be less use of balance transfer programs or credit line increases than there might in a stronger economic year.

Cassie Ricks, spokesman for Card Services for Credit Unions, said association members have nine card designs to choose from and a variety of different card and marketing materials as well.

The association is also offering free statement inserts for the holidays. MasterCard inserts will help credit unions play off the brand's national 'Overjoy of Giving' sweepstakes, promoting usage of members' debit and credit cards.

CSCU members issuing Visa cards will be able to order their free statement inserts featuring Visa's holiday merchant offer promotion, which include discounts for a variety of national retailers.

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