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Home > Smart Spending > Archives > 2008 > November > 20 > Entry
DEL.ICIO.USNot In The Cards This Holiday Season?
The Atlanta Journal-Constitution
To this holiday shopper, the gift card has been a friend in need — taking care of my needs — and a friend indeed.
Uncertain about the likes and dislikes of the intended gift receiver? No time or inclination to fight through the crowded aisles in search of a particular present? Head straight to the gift card rack.
With it, your loved one could purchase whatever he/she pleases. And you avoid the risk of, metaphorically speaking, buying a square peg to fit into a round hole.
Have you tossed gift cards into holiday stockings? Or are they not your thing?
This shopping season, gift cards are getting a bad rap, fueled by a spate of bankruptcy filings by chain stores. Some, like Circuit City, have pledged to honor gift cards for the time being. Others, like The Sharper Image, are turning them down.
Consumer experts say spending on gift cards could drop 6 percent during the holidays. Besides the bankruptcy concerns, they cite a preference by gift-givers to find bargains on the shelves rather than buy a card — which, of course, cannot be reduced in price.
Studies indicate that one of every four gift cards is not redeemed within a year, which means they could expire or decline in value. That baffling statistic explains why Consumer Reports calls the card phenomenon “the gift that keeps on taking.”
Gift cards are getting a bad rap. If the recipients elect to let them expire or wait until a store enters bankruptcy, that’s their prob. I believe they are a legitimate alternative to the item hiding under shiny wrapping paper and a bow.
Here’s a web site with advice on recourse with your card when the applicable store is about to go belly-up.
This site provides several options for getting the most from your gift card.
And here’s one about unloading a card for cash.
Will you be hesitant to hand out gift cards for these holidays? Would you rather not receive them?
For me, they’ll be a friend for life. Until, that is, I get burned by one.
To find ways to help make you way through a bumpy economy check out Your Money.
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Comments
By val
November 20, 2008 10:11 AM | Link to this
I personally like giving giftcards because the person can get what they want. I usally give visa or american express. You pay a little extra, but it’s worth it. I love getting gift cards. I can add to them and get what I really want. I would rather get a $5 to 10 gcard than a $5.00 gift that I can’t use. Becuase then the person wasted their money. I don’t beleive in “It’s the thought that counts” that could mean they thought nothing of you. I love cards and kind words as well.
By raceman94
November 20, 2008 10:16 AM | Link to this
Remember that gift cards are unsecured loans. If someone goes bankrupt, usually they are under no obligation to honor said gift card. Just keep that in mind before you buy one for an iffy retailer. Personally, I still plan on grabbing a few for Best Buy, Barns and Noble, and ect.
By danish
November 20, 2008 10:27 AM | Link to this
Gift cards are mostly what we give for the holidays to the inlaws and grandparents who dont need more STUFF but they do like to go out to eat. THey can probably go out for 2 meals for a $50 gift card to their favorite restaurants.
Its what I would want too, so I could buy what I want and not get something I dont like or dont need.
I am anti-stuff these days.
By Chuck
November 20, 2008 10:48 AM | Link to this
Why is it worth it to ‘pay a little extra’ for a Visa or AMEx gift card?? Why pay $55 to visa to give someone a $50 gift card??? Just give them the 50 bucks (or $55 as the case may be.)
Why did cash become so gauche but yet the card become acceptable?
By Jeff in Roswell
November 20, 2008 10:53 AM | Link to this
Just give cash. Cash is used everywhere. Cash does not expire. Cash gives you the flexibility to shop where you choose. If you chose to save the cash and not spend it - you may make some money. Try doing that with a gift card. There is no downside to cash. People love it.
By Chris
November 20, 2008 11:00 AM | Link to this
I hate gift cards. They are thoughtless. A gift may not fit me but at least it shows some real thought. Soon Christmas will become nothing more than an exchange of gift cards, real exciting.
By Jeff in Roswell
November 20, 2008 11:04 AM | Link to this
Chris Christmas is not about receiving. It’s about giving. Remember - Jesus is the reason for the season.
By mica
November 20, 2008 11:25 AM | Link to this
I hate giftcards. My son gave me one for mothers day and I’m still carrying it as well as a couple my hubby got on his birthday in May. I’m sure one or more have expired by now :( Had it been cash, I’d have sure used by now. Don’t always assume because someone likes to eat out somewhere that a card to that place would be the best gift. They may be desiring something else and cash could help fill that desire….just a thought for you card givers.
By jct
November 20, 2008 11:30 AM | Link to this
I love gift cards. My son gave me an itunes gift card last year. I was able to buy a bunch of music. In fact, I have started to drop hints that I would love that again for Christmas.
By jakesdad
November 20, 2008 11:32 AM | Link to this
let me make sure I’m getting this right:
wow…
a question for any lawers who might be reading this: how do they get away w/this “spoilagle” (re: expiration) business? I had a basic legal principles class in school where they taught us that one of the criteria a contract must meet to be valid is consideration - if a retailer keeps the $ w/o providing any good/service in exchange how does that not void consideration and therefore invalidate the “spoilage” part of the terms?
By David S
November 20, 2008 12:24 PM | Link to this
Reward solid companies with gift card purchases, blow off the others.
Gift cards are great for folks you don’t know that well - otherwise they are a sign that you were too lazy to put any real thought into the gift.
The best holiday my wife and I ever had was one where we put tons of thought into every gift we gave. Some we made (glazed ceramics and similar), some were unique (engraved glass mug full of bullets), and the like. Bottom line, unique, more personal than practical, and all still displayed or in use today (over 15 years later).
The message of this current and soon to worsen economic crisis is that we need to start caring about what is important, need to start reassessing the true “value” of things, and start returning to responsible and practical spending habits.
But of course a Kroger or Publix gift card never hurts - I mean everyone needs to eat.
By SD
November 20, 2008 12:32 PM | Link to this
I hate getting ten dollar gift cards from co-workers at Christmas from Walmart or Starbucks. I never go to WalMart and I think Starbucks coffee taste like sweaty feet. A card with a note will do just as well from a casual aquaintance such as a co-worker. Keep your money. Last year I gave two such cards to the toll booth operators on GA400, both were cards from stores that I never shop. Both cards were given to me from co-workers.
By FultonMom
November 20, 2008 12:45 PM | Link to this
Gift cards are yet another way retailers find ways to rip off consumers. How often do you make a purchase for exactly $25? I learned many years ago that I despise gift cards. Upon receiving one for Kmart (a store I only shopped at to buy my toddler Sesame Street clothes), I had a $2+ remaining balance. When I requested the cash back, I was told that they don’t do that. What?! I just gave it to the cashier.
I’d prefer $10 in cash, than a $20 gift card any day.
By steve
November 20, 2008 12:46 PM | Link to this
I am kind of over Christmas gift giving. I don’t really get any joy over giving or getting gifts from family and friends. Occassionally, I do find some item that I know that someone would really appreciate and I get it for them. Thats nice. But most of the time, its just an obligation to fill and usually its money spent on something that they didn’t really want or need.
I am trying to convince my family that this should be a religious holiday. And since its Christianity, then we should give the money we would’ve spent to the poor.
I would much rather someone say, “Instead of buying you another tie, I bought school supplies for a poor child student”. It would bring me much greater joy than having to pretend I love a tie I didn’t choose.
By Karen
November 20, 2008 12:50 PM | Link to this
I prefer to give cash over a gift card. You can use it anywhere and it’s always the right color and size.
By clyde
November 20, 2008 1:03 PM | Link to this
Be certain you know your giftee well before buying a gift card.My father gets several small gift cards from his favorite breakfast restaurant.One lady gets several for her favorite cab company.One gets one for her favorite coffee shop and one gets several for her grocery store.Before buying I always check to see if that’s really what they would like this year.I mean,if you know a person well enough to give a gift,surely you know them well enough to talk with them about it.
By David S
November 20, 2008 1:25 PM | Link to this
The most important thing to remember about gift cards or cash is to not send them through the mail in any of the typical brightly colored envelopes.
These cards are a magnet for the parasites that inhabit your local post office. They take these cards, hide them in their smocks, take them into the bathroom and then your gift becomes theirs.
They don’t bother with checks, and these gift cards are probably the best thing that ever happened to them.
Ever get a card marked “damaged in transit” or “found in damaged condition”? That’s because when they are done with the envelope, they toss it into the wrong sorting bin and these stamps are how the post office “lets you know.”
Send a check or send the card in a larger package or generic envelope. Your gift recipient will appreciate the time you take.
By Mike D
November 20, 2008 2:02 PM | Link to this
My wife is a teacher and every year during the holidays she come home with a pile of gift cards from her students. This is all fine and well, but inevitably she will have 2-3 Block Buster gift cards. Who the f* uses Block Buster anymore? No one goes to BB any more which is why it’s stock price is a quarter.
By lovelyliz
November 20, 2008 2:04 PM | Link to this
In the beginning, I was a big beleiver in gift cards until……………
just to name a few. Gift cards show no more/less thoughtfulness than giving cash which can earn interest. Whereas a giftcard does not.
Ny neice got a giftcard last year to one particular electronic game store that didn’t have that must have game in stock and didn’t know when they would. Since my sister didn’t want to drive 90 miles to the next location, my niece sold the card at a loss to a guy at school and went to Target to buy her game.
Moral of that story cash is always better than a gift card. If the person you are giving the gift to can’t handle cash responsibly, offer to buy them groceries or pay one of their bills yourself, but remember that gift cards can be sold off for cash.
I could tell you about my sister who got married last year and can’t use her Linens a& Things Gift Card, but you catch my drift.
By kt
November 20, 2008 2:09 PM | Link to this
I actually like receiving gift cards. I like the fact that I can go to the stores for the “After Christmas” sales & buy what I want. I like Starbucks gift cards as well.
By lawyerdaggett
November 20, 2008 2:48 PM | Link to this
JakesDad They get away with the “expiration business” by printing the terms on the card. The consideration is that if you present the card within x-number of days, you get full value. It’s somewhat akin to an option contract. If you don’t exercise the option, you lose the money you paid for the right.
By Stacey
November 20, 2008 4:14 PM | Link to this
MikeD…I’ll gladly take your wife’s Blockbuster cards. I go nearly every weekend and the one in my neighborhood is generally packed.
For those of you who may not know, if you receive a gift card to one of the chain restaurants (like Red Lobster, Olive Garden, etc), it can usually be used at any of the other restaurants under the same parent company. Last year I won a gift card at a company picnic and the nearest location is nearly 50 miles from my home. When I called the customer service # on the card they gave me a list of other restaurants where the card could be used.
By Michael
November 20, 2008 4:19 PM | Link to this
Regarding expiration dates, attorney Roy Barnes (former gov) either has or had a consumer class action regarding the expiration dates under the unclaimed property laws.
By Santa's Helper
November 20, 2008 4:35 PM | Link to this
My kids and granddaughter LOVE getting cash…especially in small demonations that “looks like a lot” for my 5 y.o. granddaughter. I put 20-25 one dollar bills in her stocking, in gift boxes, cards, etc., and she is so excited that she can go shopping at the great after-Christmas sales and get whatever it was that Santa “forgot” at a big savings! It makes her feel like a “big girl” to have money in her wallet, and my grown kids love it because they are so hard to buy for that almost everything I pick out, they don’t care for or need. They SURE don’t think cash is GAUCHE. (Of course they all get their “needed” items, like socks, bath items, etc., but not knowing what kind of clothes they like, or what items they might prefer for their homes, the cash is appreciated!)
By justine
November 20, 2008 5:40 PM | Link to this
I no longer deal with Gift Cards because of the issues with Circuit City and others. Instead, I am either giving prepaid AMEX, VISA or Mastercards. I may give food cards like ChicFila or McDonalds but that is about it. It is a shame the government has not mandated that these cards be honored.
I have a friend who got a VISA as a rebate. When she went to use it she was told the card had a ) balance which meant she had nothing
By Echo
November 20, 2008 7:07 PM | Link to this
My son loves WalMart so when he graduated from high school in May I suggested gift cards as a great gift — especially since he was going away to the University of Montana. Well, guess what? When he arrived 3 of the 5 gift cards WOULDN’T WORK. One was from my next door neighbor who adores him. We weren’t sure by that point who the others were from. She told us she used the automated machine and had trouble. The clerk came over and supposedly helped her get it fixed, but nothing showed up on the cards. Beware of the self-serve machines at WalMart. What a ripoff!
By deidre_NC
November 21, 2008 6:16 AM | Link to this
itunes is the only card worth giving imo…cash rocks..gift cards lose value (some of them) some of them cost money to begin with-some go our of business—give cash or itunes cards
By Chickadee
November 21, 2008 8:17 AM | Link to this
I just received an e-mail that listed many companies that will be closing some stores and some that are closing all stores. Once they go out of buisness the gift card is worth nothing.
Right now we really shouldn’t be spending much money anyway. The next administration is going to tax us to death. Even if you do have the money save it.
By dixiewife44
November 21, 2008 9:43 AM | Link to this
Nothing wrong with gift cards imo. My husband and I give them to my parents, and my parents give us some as well. Usually for restaurants that we like, which is appreciated since the price of eating out is pretty expensive now adays. Honestly, their the best idea if you dont know what to give someone who “has everything.” A gift card to a favorite store enables the recipient to get whatever they want.
By mr. cheapskatin'
November 21, 2008 9:55 AM | Link to this
Whoa, quite a range of opinions on gift cards.
When I posted this blog, I assumed the value of a card was the same as its purchase price (i.e., $50 gets you $50). Reading these comments reminded me that’s not always the case.
So, amending my position: I’ll buy a gift card for a loved one if every cent I spend goes into his/her pocket. If there’s a fee tacked on for the transaction, no way.
Agreed?
By Nixon
November 21, 2008 10:00 AM | Link to this
I think giving a gift card is a lazy way out. You feel obligated to get something, but you don’t know what to get, so you take the easy route and get a gift card.
I personally HATE getting them. You couldn’t put more thought into a gift?
And I will NOT give them out. It’s a lack of class to give a gift card.
No one in my family EVER gives a gift card. It’s just plain tacky.
By Michael
November 21, 2008 11:33 AM | Link to this
My friend got married on Nags Head and they requested gift cards because we all traveled more than 500 miles to get there and they didn’t want to fight getting gifts on a plane.
By S
November 22, 2008 8:53 AM | Link to this
There are quite a few stores going out of business after the first of the year. So before I would spend money at one or buy a gift card, do your homework. Some will be shutting down for good. Some closing a few stores, some closing a lot. Caution is advised.
By too much materialism
November 22, 2008 9:14 AM | Link to this
I personally like receiving gift cards, but this year there are many warnings out there about companies going under or not honoring it, so I would think twice. This entire discussion, however, is exactly what is wrong with what Christmas has become - it’s become all about the food and the stuff and not about the spiritual. It’s about giving, not only giving stuff but our time and attitude. Giving a lump sum to a nonprofit or “adopt” a needy family. Spending the day in a nursing home tending to whatever needs there are or just sitting with someone and listening to them talk. Going to a pet shelter and walking the dogs. And going to church on Christmas - yes I said the word Christmas.
By Sal
November 22, 2008 10:36 AM | Link to this
Give gift cards judiciously: make sure the stores that you choose are not going out of business. I have mixed feelings about them, because I too have tucked them in my wallet and promptly forgot about them until too late. My 11 y.o. however, LOVES them. She enjoys picking out her own clothes (Old Navy, Penneys, Kohls) and Target is a great catch-all for electronic games, books, CD’s, etc. Hers never expire since she usually wants to go to the store immediately to redeem them. And I have to admit, I’d just as soon go pick out a sweater in the right style, size etc. than having to go back to the store to make an exchange (esp. right after Christmas).
By love them
November 22, 2008 4:02 PM | Link to this
My boss always gets me a Barnes & Noble gift card and it’s great because I can get myself anything I want - calendar, music, note cards, books, Starbucks. I never forget to use a gift card.
By Terence
November 22, 2008 8:10 PM | Link to this
*<<… I had a $2+ remaining balance.
When I requested the cash back, I was told that they don’t do that.
What?! I just gave it to the cashier. …>>*
+++++
Q) What? In a store like Wal*Mart you could not find something that has a selling price of $2.00 to $3.00?
Q) Even at / near the checkout?
Yikes!
+
Terence in Brook Park, oHIo
By Change America
November 23, 2008 8:04 AM | Link to this
I worked for Visa for 4 years and when they started with the ‘new’ idea of gift cards they told us what a great profit center the cards are. Fee’s, expiration, losing value as a rule, and the longer you keep the card the more inflation eats into its value. Give cash with a nice card perhaps with music or your voice wishing a happy what ever. Stay away from these rip offs!
By la
November 23, 2008 2:16 PM | Link to this
I was in Old Navy and a lady tried to use her American Express Gift card. She was still in line 15 mins later as the store personal talked on the phone to IT to figure out how what key to punch: credit card or gift card. They still were not able to finalize the purchase after 15 mins. I couldn’t believe that a majore retailer like Old Navy couldn’t process a Amex. gift card. I don’t know what happened to the laday, however, she looked embarassed that the card didn’t initially work.
By steve
November 23, 2008 5:25 PM | Link to this
What part of just give cash is confusing to you????
By Kat
November 23, 2008 9:38 PM | Link to this
I’m down the middle on this - I both like the cards and dislike them. As long as it is a store that I tend to shop at (Wal-Mart, Target, Publix, and so on), I love to get gift cards! I prefer not having to stand in those awful return lines just because someone wanted to be “more” thoughtful by getting me an actual gift. However, if it is a store that I never shop at, ugh - I would give the card to someone else. Usually, I think what the giver of the gift card likes, and then buy them something from that store and give it to them on their birthday or whatever. I love gift cards to stores that I like but don’t usually shop at due to the higher prices - always works out in my favor. Merry Christmas everyone!