Gift Cards

[hvacker]

I never gave gift cards much thought but reading in the paper a report said:

One in five is never redeemed

Some have expiration dates on them

The stores want you to wait until after the holidays to redeem them as prices have gone up by then.

It's a 5 Billion dollar profit center

So, if you have one they say redeem it now.

[Johnny Law]

but no one can stand to see the other guy making one.

[dec]

well a lot of them have expiration dates and monthly service charges ...........thing is , a lot of states dont allow those charges on gift cards. Always look at the rules in your state. If they try charging you and you know the law , that shuts them up :D

[gruntly]

I like these gift cards...

[dhvac]

but no one can stand to see the other guy making one.

the problem is if someone give you a gift card they had to pay for that card, the company has the money. why should they be allowed to expire it? they cant in pennsylvania but they shouldnt be allowed anywhere

the card is paid for and should be good till you use it

[Johnny Law]

Yes they have the money BUT
Don't expect to walk around with it for two years and it collect interest . Someone gives you a gift card like a check, read it and then use it. It's not a savings bond either.



They set those things on current market values.

[fireplaceguru]

Just give me the money and I can buy what i want were i want.:)

[The Penguin]

Yes they have the money BUT
Don't expect to walk around with it for two years and it collect interest . Someone gives you a gift card like a check, read it and then use it. It's not a savings bond either.



They set those things on current market values.

You show your total ignorance on the subject perhaps you should inform your self on the subject before spouting off such inane comments that show a total lack of intellegant thought process coupled with a kneejerk response

[Johnny Law]

You show your total ignorance on the subject perhaps you should inform your self on the subject before spouting off such inane comments that show a total lack of intellegant thought process coupled with a kneejerk response
Thanks for nailing it down on how that was ignorant and the insult :rolleyes: Why don't you share your knowledge on the subject? Perhaps you can explain the buying power of a gift card you held a year that came from a gasoline company (they sell them now also) or a company who's products contains copper verses using it back a year or so ago verses now. A gift card is nothing but a fixed debit card. The value of it goes up or down with the economy. And everyone knows the direction the cost of products is going but do enlighten me on your economist skills.

[dhvac]

ok great lets use the gas card as an example

now lets say you are very generous this year and send me a $50 gift card and i use it today for 17 gallons of gas all is well

but lets assume i lose it in my truck for a year (not really that unlikely) and i go to that gas station in a year and now its only good for 10 gallons of gas
there is no problem there
but if they expire it they took your money and gave you nothing for it

totally different with a check, because if i dont cash your check there was no money exchanged
you are not out and none except you got the money

so it really is apples and oranges

[Johnny Law]

Well, from the consumers prospective you lost 7 gallons of gas. A check is a promise to pay and has a fixed amount. If the account was closed then you're screwed. The gift card as in the case of the gas can fluctuated greatly.

[nashobasales]

You also have to be careful with gift cards because of the scam that was going on. People would write down the #'s from the back and keep trying to use them online. Once they were purchased and activated, the scammer would try it and it would work. Now you are out whatever amount the gift card was for. I always buy mine from behind the counter now. Just a tip.;)

[markettech]

Well, from the consumers prospective you lost 7 gallons of gas. A check is a promise to pay and has a fixed amount. If the account was closed then you're screwed. The gift card as in the case of the gas can fluctuated greatly.

I'm not following your thought process here.

How is someone handing you a gift card for $50.00 today, and you waiting to spend it until next year any different from someone handing you $50.00 cash that you stick in your sock drawer for a year and then decide to use it for gas?

Your second post here indicated that companies set gift card pricing on current market values. This makes no sense to me. A gift card is money, why would the store care what the value of a dollar is a year from now?......A buck is still a buck.

What am I not understanding?

[Johnny Law]

I'm not following your thought process here.

How is someone handing you a gift card for $50.00 today, and you waiting to spend it until next year any different from someone handing you $50.00 cash that you stick in your sock drawer for a year and then decide to use it for gas?

Your second post here indicated that companies set gift card pricing on current market values. This makes no sense to me. A gift card is money, why would the store care what the value of a dollar is a year from now?......A buck is still a buck.

What am I not understanding?

In Dhvac's post number 10 he also defined the loss of 7 gallons of gas on the $50 card. Gas went up, you got less gas for the $50. Chances are, your car still got the same miles per gallon. I don't really think gift cards are a great idea and especially holding on to them.

[The Penguin]

Yes they have the money BUT
Don't expect to walk around with it for two years and it collect interest . Someone gives you a gift card like a check, read it and then use it. It's not a savings bond either.



They set those things on current market values.

lets try again

A gift card HAS NOTHING TO DO WITH THE COST OF THE ITEM PERIOD.

it is a moneytairy value ONLY
the item could cost more or less than at the time the person brought the card. just the same as if the person gave cash or a personal cheque.

neither a cheque/cash/ gift card accumulates interest (and honestly I don't recall anyone other than you bringing this up)

the biggest problems for recievers of gift cards is
1 admistration fees
2 expirey date
3 retailer declaring a lower value for redemption than the purchase price

the advantage for retailers are

1 all of the above
2 20% of gift cards are not redeemed thus in a 100 million dollar /yr for gift cards a retailer can expect 20% winfall based upon people forgetting to redeem
A total win win for the retailer.

Some states and provinces have taken steps to rule out the top three issues - however they can't make people redeem their cards thus the retailer still gets 20% for nothing

I do agree with your last post - gift cards are not a great idea - I don't like them either

[Johnny Law]

lets try again

A gift card HAS NOTHING TO DO WITH THE COST OF THE ITEM PERIOD.

it is a moneytairy value ONLY
the item could cost more or less than at the time the person brought the card. just the same as if the person gave cash or a personal cheque.

neither a cheque/cash/ gift card accumulates interest (and honestly I don't recall anyone other than you bringing this up)

the biggest problems for recievers of gift cards is
1 admistration fees
2 expirey date
3 retailer declaring a lower value for redemption than the purchase price

the advantage for retailers are

1 all of the above
2 20% of gift cards are not redeemed thus in a 100 million dollar /yr for gift cards a retailer can expect 20% winfall based upon people forgetting to redeem
A total win win for the retailer.

Some states and provinces have taken steps to rule out the top three issues - however they can't make people redeem their cards thus the retailer still gets 20% for nothing

I do agree with your last post - gift cards are not a great idea - I don't like them either

cheque ?

Oh I see you are Canadian. :D Gift cards are sold for many reasons and many of them are specific. I used fuel and gas as a good reason that your gas gift card can depreciate quickly and Dhvac pointed that out to the point and a 10 year old can see that after the last 12 months. Cost of leaving them in your wallet and administrative fees just further proves my point. Now why was I ignorant again?


A total win win for the retailer.

Yes, try reading my post # 14 paying close attention to the last sentence

[aruddick]

I don't get it. 50 bucks is 50 bucks. It doesn't depreciate. I may not be able to buy as much of an item due to price fluctuation (as in gas) but i still get the same amount of money.

I got ticketmaster $100 gift certificate 4 years ago. still valid for all the money. The problem is that a retailer should not be able to reduce or expire.

P.S. I don't like or give gift cards either.

[viceman]

WOW. it has gotten to the point you can be FLAMED
for antyhing around here:eek:

[Johnny Law]

I don't get it. 50 bucks is 50 bucks. It doesn't depreciate. I may not be able to buy as much of an item due to price fluctuation (as in gas) but i still get the same amount of money.

Yeah, but you don't get the same amount of gas. Are you going to stuff the card into the tank?

I bought a pallet of freon 6 months ago. Last week I checked the price and it had doubled. If I had given you a $50 gift certificate for freon 6 months ago and you waited till now to get it...hey fine by me. You are going to get $50 worth and pay full price for the rest. :p

[aruddick]

I wouldn't buy gas then. lol
People that hold giftcards run a great risk. Alot get forgoten (like mine to ticketmaster till i stumbled across them) That is why they are a bad gift. The fact retailers change their price is a fact of capitolism. (which is fine by me)

[dhvac]

johnny
no one here ever said they expected to get something at todays value in 2 or 3 or 20 years but the point is they should not expire the card no matter how long you have it, they have been paid so the card should be honored at face value no matter when you use it

[mrs reb77]

Probably has something to do with their profit reports as to them being used within a certain amount of time. They report the sale of the gift card as well as the redemption.

I think perhaps Johhny had it in mind that the cards were for specific items hence the commodities references.
I think the gift card has gotten way more use than it should. It is just another way of saying "here, you figure out a gift". Might as well give the money, it can be used about anywhere!
Oh, and have you seen the auction/swap sites for gift cards? They charge for the service (of course) but you can trade or sell or buy about any type you got, just in case it wasn't the right 'color or size'. :cool:

[Johnny Law]

johnny
no one here ever said they expected to get something at todays value in 2 or 3 or 20 years but the point is they should not expire the card no matter how long you have it, they have been paid so the card should be honored at face value no matter when you use it

Right, no one ever said it but a couple still thought $50 worth of goods was $50 worth of goods years later. And why shouldn't a company have reasonable time periods to expire gift cards. Isn't that something that the purchaser should be aware of and communicates on the card. What business is it of state or federal government putting their nose into this? They have no problem running up debt and trashing every program they ever created. Why don't they pass term limits come to think of it? Why dont they give you till forever to pay the state and federal taxes? LOL
I think a reasonable amount of time is adequate. If you want to hold it until the service charges makes it worth $1.75. then that is your prerogative.

[Johnny Law]

I think perhaps Johhny had it in mind that the cards were for specific items hence the commodities references.
Well no not really, I used a commodity such as gas to show drastic price fluctuations that devalue the card. Before someone types again...$50 is $50..yes....but you get a lot less gas with that $50 now. Not to mention some places charge service fees on un-used cards.

[neophytes serendipity]

A gift card does not count as a "sale" until it is redeemed for merchandise.

Retailers needed a way to move the cash from one side of the books to the other, that is done with service fees on inactive cards.

That's how I understand it.

Gift cards now come with something over the serial numbers helping to reduce theft. It is impossible to remove the sticker without destroying it.