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81 Comments
- BeKaws, on 12/29/2007, -1/+42a gift is a gift you ungrateful bastards
- nova912, on 12/29/2007, -1/+31Money (cash) should not be 'taboo.' I suggested giving my girl $50 with her gifts, she looks at me and says "NO!". I jokingly say 'ok ill get you a $50 gift card' She smiles and says 'yea thats fine'... ***** hallmark too while I'm at it!
- Toast1185, on 12/29/2007, -1/+25Protect the populous? What do you want, someone to hold your hand? You get a gift card, you spend it. We don't need some government program tasked with giving reminder calls to people that can't remember they have money to spend.
- zephyr42, on 12/29/2007, -0/+20That's actually a damn good idea for gift cards....
- cards, on 12/29/2007, -0/+15I can't decide whether I'm impressed or disappointed that you didn't bother to tell us who your company is.
- Braxo, on 12/29/2007, -1/+15My company sells gift cards for our stores that every year, they go UP in value by 10% upto an additional $100.
So buying a $100 gift card will be worth $200 in 10 years, but at least it doesn't lose its value. - Somniis, on 12/29/2007, -1/+15Gift cards are a scam. If you are going to give a gift card, don't, just give the money instead. Nothing worse than having a gift card that will never be used simply because it is to a store that is of no interest at all to the recipient.
- shyner, on 12/29/2007, -4/+18***** that. I don't mind gift cards a bit. Especially for Best Buy and Borders. That way I have money to use at those stores when something comes out that I want. If I were given just money it would probably just get spent on food or something. Gift cards are a convenient way to have money set aside, so to speak.
- sg1fan, on 12/29/2007, -0/+10Well, if a person can't be bothered to spend a gift card they are given, isn't that their problem, not the stores or government?
Although I have to agree with people who complained about getting a gift card for a store they don't go to, or for a store that isn't nearby. But who wouldn't love getting a gift card for a store like Future Shop (best buy in the states). You can use it to buy a movie you don't have yet, or blank cds or a new hard drive etc.
Gift cards are handy for grandparents who might not be able to keep up with what the kids like. Especially clothes and music. My grandmother always kept receipts in case we didn't like the clothes she gave us. And when gift cards became more popular she found the perfect gift for us. - hagerman, on 12/29/2007, -0/+9Here are the laws regarding gift card expiration dates and service fees for each state:
http://www.consumersunion.org/pub/core_financial_s ... - moocow1452, on 12/29/2007, -0/+8Don't look a gift horse in the mouth, even if that horse is a card. Or something along those lines...
Certificates are fair game though. - mrswirl, on 12/30/2007, -0/+8This article has some valid information but it is presented in such an alarmist way as to scare the average person into thinking that their gift cards are going to be sucked dry if you don’t use it right away. The truth is somewhat different.
A gift card is considered a cash liability for the store in that they have already received the money and are waiting for it to be redeemed for product. It is really no different than the old paper gift certificates except that it makes purchases and redemptions much easier for both consumer and company.
If you lose the card or don’t spend all of it, the retailer doesn’t just get to keep the money – they have to keep the liability on their books until such time that they can claim it is abandoned and then petition the government to keep it. This usually takes up to 2 years. Cash-starved governments want to keep this money for themselves instead of course so they are passing laws making service fees that decrement unused value prior to the 2 year limit illegal. There’s nothing virtuous behind these laws. It’s still all about the money and who gets to keep it – the retailer or the government.
FTA - “The industry term for this hush hush secret of the gift card industry is breakage. Breakage is the free money that retailers get when gift cards go unused or underused.”
There’s nothing ‘hush-hush’ about this. Breakage represents a very small percentage of the total money spent on gift cards. Most of the time retailers are more interested in ‘uplift’ than breakage. Studies show that an average consumer will spend considerably more than the value on their card. Retailers care much more about this number than the pennies left on an unused card.
FTA – “Many states are trying to ensure that gift cards do not have expiration dates anymore, but this still hasn’t stopped relentless fees from eating away the balance of cards.”
Retailers are not out to screw the average gift card holder. If you don’t use the full value on the card then it’s the same as leaving money on the floor. It’s not their responsibility to make sure you spend every last dime. Mostly this issue is a fight between retailers and governments who want to keep the left over money that you can't be bothered enough to spend.
What retailers do not want is for the government to come in and take the unused money away as abandoned property. This is why most companies will impose a service fee or decrement the balance over time (where they are allowed to) in order to avoid having to turn the unclaimed funds over to the government.
Most service fees have been dropped recently since a majority of states have passed laws making them illegal and they create bad PR for the company because of articles like this.
This does nothing to return the money to the consumer however. Gift cards are anonymous, remember? It’s like dropping a $10 bill from your pocket. Neither the company nor the government knows whose $10 bill it is.
If you want to ensure that you’re getting the full value of a gift card then the only way is to spend it – all of it. After all, that’s what it’s designed for.
Most stores will also let you ‘cash out’ the unused portion right away although this is typically not advertised. Some states like CA are starting to mandate it so it’s a good idea to ask if you know that you are not going to use the full value. Be aware that there are limits – for instance, you can only cash out the remaining balance if it is under a certain amount like $1 or $5. This means you can’t just buy a pack of gum with a $100 card and expect $99 back. - inactive, on 12/29/2007, -0/+8exactly, what the hell am i supposed to buy from american eagle outfitters with $25? socks?
- Schmapdi, on 12/30/2007, -0/+8I think the reason cash is considered tacky is because it's generally assumed you pulled it out of your wallet 5 minutes before hand and stuck it in a card. It's like giving someone something you found in their driveway. Gift cards show at least a minimal amount of thought/effort was made.
If you really want to give cash - get some crisp new bills from the bank and stick it in a money holder or card. Do something to show some forethought went into the present. - MtheoryX, on 12/29/2007, -0/+7Again, assuming you had planned a larger purchase in the first place.
If not, it comes down to, gee, thanks for making me now go out and spend more of my money to get some use out of your gift. - ZxEfR, on 12/29/2007, -0/+7Since your incapable of taking care of your own business..........I'll be more than happy to set aside your money for you!
- amyfamb7, on 12/29/2007, -0/+7This is the 2nd story on Digg about gift cards. Are they really that hard to use? Use them in a reasonable time and GET WHAT YOU WANT. It's really not that difficult. Turn that card over and read the conditions or look for expiration dates. They make great gifts.
- MtheoryX, on 12/29/2007, -0/+6No, it just heavily taxes them.
- inactive, on 12/29/2007, -0/+6*always uses the gift cards he gets* maybe its just me, i keep up with my money
- reakt80, on 12/29/2007, -1/+6Cash is far superior, but there's this strange social stigma associated with giving cash. It's like, it's an uncaring giver who gives cash, a resource that can be used ANYWHERE, but by limiting the recipient's choices, suddenly the giver has become thoughtful in some way.
I'm just bitter because I got gift cards this year for a mall that I live 6 hours away from, and i'd prefer to have the cash to pay bills anyway. - Prod_Deity, on 12/29/2007, -1/+6that's why I love Washington state.
there was a law passed a while ago that deems expiration dates or fees of gift cards illegal.
the only ones it doesn't apply to are those pre-paid cards from visa, master card, or green dot types.
Its nice to know that some places look after their constituents. - saifatlast, on 12/29/2007, -0/+5Well at least if you get her a gift card you're showing that you know her well enough to know where she shops.
- Bamborzled, on 12/29/2007, -1/+6Has the evil government regulated away spaces and lowercase letters?
- kentifer, on 12/29/2007, -0/+5The only gift card i recieved that doesn't expire or have fees is walmart.
And walmart is the devil apparently. - inactive, on 12/29/2007, -0/+5A free Blizzard may well be worth the drive...
- Krabid, on 12/29/2007, -1/+5Buy Visa gift cards instead of store cards.
- ventralnet, on 12/30/2007, -0/+3The government already gets a piece of the action with uncashed checks.. For example lets say you have a job and don't cash one of your paychecks. The business doesn't get to keep that money, the state absorbs it after a period of time. Hell, you may want to check the system, you may have some money in limbo that you are owed.
- ZxEfR, on 12/29/2007, -0/+3Amazing isn't it!!!
- hayzeus, on 12/30/2007, -0/+3Sorry -- but this comment is really far too well-thought out and informative to be considered a proper Digg response. Buried.
- h4mx0r, on 12/29/2007, -0/+3Agreed, but please, if you buy us gift cards, buy us something RELEVANT or even NEARBY.
You know, so I actually have a reason to use it.
I remember getting a Dairy Queen Gift Card/Certificate. I never used it because there wasn't one within like 25 miles of me all around. - katrayun, on 12/29/2007, -1/+4I'd rather get a gift card than more 'stuff', no matter how carefully or lovingly selected.
- alvarezg, on 12/30/2007, -0/+3I give my (grown) kids US Treasury Gift Certificates, the Franklin series. Always appreciated.
- KungFuJesus, on 12/30/2007, -0/+3Checks are slightly less taboo, i've noticed
- inactive, on 12/29/2007, -1/+4This article is more of the typical ***** from the anti-gift card crowd. What ***** year are these people living in? MOST cards do not have fees anymore. And the ones that do do not start until 12 months or more after purchase. Sorry, but if you have not redeemed your card after a year, or even two, then you deserve to lose some money.
- ZenFountain, on 12/29/2007, -8/+11Gift cards are such a lame present anyway, you may as well give cash or simply tell them "I don't know you well enough to buy a real gift or I bought your gift at the last minute."
- PhilLesh69, on 12/30/2007, -0/+3It is just like the ATM fees. I was a bank teller back in the early 90's, when there was some sanity to it all. A card issuing bank received 25 cents, and the processor got 40 cents, and the network got 10 cents. This was regulated, and it was part of the whole "star", "plus" or "affn" network affiliation. The concept was created by the people who created the networks, to motivate banks to join. They could make quite a bit of money by taking a dime per ATM transaction, and they figured the depositor bank and the money issuing bank would need to be enticed to join. And both parties made a decent amount of money in this equation. I even remember a Savings and Loan (you have to be a certain age to even know what an S&L is) that would give depositors 50 cents for every ATM withdrawal made at their branch. I figured out a way to game them to make $20 in an hour and a half.
Not anymore. You pay a 10% fee to withdraw $20. on top of the network fees (ever see your statement? -$42.50 ATM WITHDRAWAL, and then just below that, -$0.75 ATM FEE
Now, the processor still gets that 40 cents, and the issuing bank still gets that 25 cents, but now the processor also asks you if you agree if they can grab $2, $2.50 even $3.00 from your account. They got around the rules by "asking you" if it was okay for them to dip into your account for that extra "convenience fee". - inactive, on 12/29/2007, -1/+3Gift cards are a great way to say you care ... but not that much. If you get one from your significant other, it's probably time to move on.
- thanakar, on 12/30/2007, -0/+2Depends on the type of gift card you buy. You can get no fee, no expiration American Express gift cards which can be used practically anywhere.
- inactive, on 12/29/2007, -0/+2$25 off a larger purchase you were going to make in the future anyway doesn't sound so bad...
- thanakar, on 12/30/2007, -0/+2Only gift card that I have received and never used was an ITunes gift card. I just regifted it to my son, instead of complaining. It is the THOUGHT that counts, not the item.
- DavidGX, on 12/29/2007, -0/+2But but.. teh big governmentz!!!!1oneone!1!eleven1!!!
- MasterGrief, on 12/30/2007, -1/+3Yeah, well, you're a sissy.
- mrswirl, on 12/30/2007, -0/+2Unfortunately for you, Washington state has the vested interest in claiming the unused money. They really don't give a rat's ass about their constituents.
If you lose or don't use a gift card, the government can argue after a certain amount of time (usually 2 years) that it is abandoned property and claim it for themselves. By making service fees and expiration dates illegal, all they are doing is ensuring that the state gets to keep the money and not the retailer.
You, as the consumer, are still left holding the (worthless) plastic.
Google 'escheatment' if you want more details. - Oea420, on 12/30/2007, -0/+2I never understood why people would buy gift card which are pretty much just a gimped form of cash. You can't get a return in cash, you have to spend it at that store, etc etc etc....
If they raised in value like you said (even gaining half the interest that it generates sitting in their fat bank accounts) I would see gift cards as an actual valuable thing....even if they compensated for ***** inflation - pipipie, on 12/29/2007, -0/+2These lose value over time too. Plus if you ever need any support from them about the card they charge you out the butt. Plus they have an expiration date on them. I had a $250 card given to me by work one year and I didn't use it until the very last moment (about 15 months later...). There were some fees incurred on it and i only had a value of $240 something on it. I know that's negligible but when i finally spent it (on a digital camera) i had to pay 5 dollars out of pocket for it which the card should have covered to begin with. I know i should have probably spent it on gas or something but if the person is like me (and thus why you are getting him/her a gift card) he/she is just going to sit on it until they really want something. These have their flaws too...
- Oea420, on 12/30/2007, -0/+1You know what, I work retail and screw those credit gift cards....
I swear to god, I've had more problems with those totally eating the balance during a transaction while not going through... they are utter crap - captZEEbo, on 12/30/2007, -0/+1why the hell are people so pro government regulation and anti free market capitalism?
I wish everyone in the world would read this book: http://www.amazon.com/How-Capitalism-Saved-America ... - thanakar, on 12/30/2007, -0/+1If you don't like the coffee, get hot chocolate..or are you hating Starbucks just because it is Starbucks.
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