Gift Cards, Big $$
UP Date, Cash from Gift Cards
Starting January 1, 2008, a new California law lets consumers cash in gift cards with less than
$10 on them.� So if you spend $40 of a $50 Gift Card you now can get $10 back in cash,
you don�t have to lose it or spend it on something you don�t want.� The new law works for
cards purchased before January 1, 2008.
Christmas Season 2007 Up Date:
This Christmas Season (Nov. & Dec. 2007) Merchants in the US expect
to sell $35-Billion Gift Cards.� Also the merchants are expecting to
make Billions of Dollars on gift cards that are lost, forgotten, or
just ran past their expiration dates.�
Eight Billion Dollars in Gift Cards have not been cashed in from
Christmas 2006 Sales.� That�s 27% of the people who got them have not
cashed them in.� That is pure profit for the merchants.� They are paid
and they never have to provide the merchandise.
It is estimated that 52% of shoppers will buy Gift Cards this 2007
Christmas Season.� It is easy and you do not have to worry about the
person liking what you chose as a gift.
A survey by Consumer Reports National Research Center found that more
than half of those surveyed said; they had not used their cards yet
because they did not have time, while 35 percent said they could not
find anything they wanted.� Almost one-third said they did not use
their card because they forgot about it.
�
The giving of "gift cards" that are like ATM cards is very popular.
The "gift cards" are loaded with a certain amount of money for the gift receiver to spend.
They are a debit card for the amount loaded into the credit. You can use them like a
credit card until the amount that was loaded is gone.
But there are some important "dirty little" secrets the consumer should know:
• First, many of the "gift cards" are limited to the places where you can use them.
Some stores will only let you use their "gift cards" in their stores and they will
take no others. Also there are limits to where you can use them. The consumer
cannot buy airline tickets with them or pay debts, like your phone or utility bills.
• Second, Many of the "gift cards" have built in limits in them, like four months or
six months. If you try and use them after the time limit you have to pay a fee of
several dollars.
• Third, almost all the "gift cards" have expiration dates on them. After the expiration
date the card is dead and if the consumer has not used it he or she lose the money on
the card.
• Lastly, lookout for a monthly maintenance fee that can eat up all the money in
the gift card.� The fee normally starts in three to four months and then reduces the gift card
amount monthly until there is nothing left on the card."
The "gift cards" are different than "gift certificates." In California and many other
states it is illegal to put an expiration date on the "gift certificate" that you bought
for a cash value. It would be like putting an expiration date on your money.
In California "gift certificates" given as awards or as prizes by a charity can
have expiration dates. The U.S. Congress will soon be looking into putting a ban
on expiration dates for the new "gift cards."
When giving a "gift card" make sure the person who receives it understands all the rules
in the fine print. | |
