$8.2 Billion in gift cards wasted

[fultron]

Interesting story about the staggering waste of gift cards being unused. Retailers must certainly be happy though...

full article at

http://www.wftv.com/irresistible/10694723/detail.html

[poundwise]

Re: $8.2 Billion in gift cards wasted


Absolutely. It is the same tactic used for any pre-paid arrangement as well as airline miles and reward points. The issuers factor-in the fact that a certain percentage of gift cards, certificates, miles, points, etc. will go unredeemed.

That doesn't make any of those things bad, mind you; it just happens to be a fact.

[vsjhoc]

Re: $8.2 Billion in gift cards wasted

Absolutely. It is the same tactic used for any pre-paid arrangement as well as airline miles and reward points. The issuers factor-in the fact that a certain percentage of gift cards, certificates, miles, points, etc. will go unredeemed.

That doesn't make any of those things bad, mind you; it just happens to be a fact.

The same is true for rebates on products. The manufacturer/retailer offers them after having calculated the percentage of people who (a) won't bother sending it in or (b) send it in but don't follow the instructions to the letter (e.g., they omit sending the original receipt, etc.).

[fairy74]

Re: $8.2 Billion in gift cards wasted

They don't earn any money off me...I use every gift certificate and every rebate I can find--even if I have to hound them about it to get the refund. I do believe that a lot of people don't use gc and rebates, even if they are entitled too.

[Hez]

Re: $8.2 Billion in gift cards wasted

Blockbuster earned a bit of money from me this way. My aunt gave me a gift card when I was recovering from surgery over 2 years ago, and I used a little bit but not the full amount. I tried to use it again to "kill" it last month and it had expired. It didn't have an expiry date anywhere on it or any note that it would expire in x amount of time. Very annoying! When the woman at Blockbuster asked if I wanted to pay cash for my item instead I said "no thanks!"

[shengmei]

Re: $8.2 Billion in gift cards wasted

That is not the worst. The worst is those Ann Taylor "gift certificates" that entitle you $25 off $50 purchases but you must have the original receipt to redeem them.

Just how many people keep their receipts attached to their gift cards? I certainly don't

On the plus side though I was able to get a good deal on sephora gift card this year. I bought a gift card for myself and it came with some cosmetic samples. I bought the smallest gift card ($10) they had and promptly used it so I don't forget.

[PRICEPLUS]

Re: $8.2 Billion in gift cards wasted

There should be no expiration date!

[poundwise]

Re: $8.2 Billion in gift cards wasted

There should be no expiration date!

I disagree. I think the expiration date should be clearly defined and expressed but I don't believe a company should keep the value extended indefinitely. Even paychecks, among many other things, have a limited time-frame (in most cases) wherein they are still executable.

Doesn't the person giving the gift card/certificate have a responsibility to know what sort of time-frame/expiration it carries? And doesn't the recipient similarly have a responsibility to use it according to the terms?

I agree, mind you, that the terms need to be fair, honest, and clearly stated (which is often not the case) but beyond that, I don't see what else the business could do.

One thing I have seen that I think is good is that Amazon.com gift certificates have an expiration date on them AND then there is also a grace period of an additional year. Meaning, if you accidentally let your certificate expire before using it, Amazon will still honor it for up to an additional year. That's pretty good.

[poundwise]

Re: $8.2 Billion in gift cards wasted

The same is true for rebates on products. The manufacturer/retailer offers them after having calculated the percentage of people who (a) won't bother sending it in or (b) send it in but don't follow the instructions to the letter (e.g., they omit sending the original receipt, etc.).

Absolutely true. Many people may wonder why the manufacturer/dealer doesn't just lower the price on the item instead of making people send in the receipt, bar code, and rebate form.

The answer is: They can't! They cannot sell the item for the after rebate price to everyone without losing money. The count on some people not knowing about the rebate. They count on others not sending in the rebate because they don't care. Others, to forget. Others, to wait too late. Others, to send things in incorrectly. And, I am convinced, some companies, even if everything is sent in correctly and on time, will withhold some rebates until you follow up with a phone call or otherwise complain. Additionally, by requiring the original receipt and/or UPC code from packaging, they are helping to ensure that you cannot return the product.

Again, this doesn't make rebates bad or anything; it's just good to know the facts.

I do rebates on some things, through some companies, some of the time, but avoid many others just because of the hassle, delay, and ability to seek out and buy another item at a good price without a rebate.

[disneysteve]

Re: $8.2 Billion in gift cards wasted

I've found the biggest problem with gift cards was when they stopped giving you change if you didn't use the full amount. For example, if I have a $25 card and I make a purchase for $23.50, years ago they would have just handed me $1.50 cash. Now, they leave that $1.50 on the card. Well, I've got more than enough things in my wallet. I don't need to be carrying around a stack of gift cards that all have small amounts, sometimes $.50 or less. Those little bits of money must add up to millions nationwide.

Essentially, the only way to use the full value of a gift card is to spend MORE than the face amount since it is extremely difficult to spend exactly $25 or $50.

That's why I've stopped giving gift cards. I don't want the recipient to have to spend more money in order to use my gift.

[PRICEPLUS]

Re: $8.2 Billion in gift cards wasted

Poundwise,

Intwerestingly enough a local law here prevents businesses from having expiration dateson gift cards. The basic thought being that they already have your money and then it is a simple book keeping entry. Just thought I'd mention it as no company here has stopped selling gift cards!

[vsjhoc]

Re: $8.2 Billion in gift cards wasted

Poundwise,

Intwerestingly enough a local law here prevents businesses from having expiration dateson gift cards. The basic thought being that they already have your money and then it is a simple book keeping entry. Just thought I'd mention it as no company here has stopped selling gift cards!

PP - True. State laws vary on this issue. They affect store cards but not Visa/MCs.

[b4freedom]

Re: $8.2 Billion in gift cards wasted

Interesting story about the staggering waste of gift cards being unused. Retailers must certainly be happy though...

full article at
http://www.wftv.com/irresistible/10694723/detail.html

My mother gave us a gift this year that was obviously a regift from last year. How did we know? Cause she used the same gift bag as last year and forgot to take out an envelope. Inside the envelope: $50 that her sister gave her the year before with a note saying "Thanks for covering me...". We didn't tell her. I figure if she forgot $50 from the year before she'll never miss it.