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Should Restaurants Honor Lost or Expired Gift Certificates?

Reader Sherrie Nist-Olejnik emailed with a gift certificate dilemna. Her daughter purchased a $200 gift certificate to Watershed in Decatur for her and her husband back in June, but the couple inadvertently lost it.

They would like Watershed to honor the certificate, so much so that they emailed a copy of the transaction from their daughter’s debit card records.

Says Nist-Olejnik in her email: “I understand that we should have been more careful with it, but I also believe that if restaurants are going to sell gift certificates, they should have some responsibility as well. Even though we have proof that it was purchased, I’m sure Ms. Jones (Ross Jones, owner-operator of Watershed) is legally within her right not to honor it because we don’t physically have it, but I think it’s pretty poor business.”

Jones, in response, offered to buy the couple drinks and appetizers and to “personally take care of them” on their next visit to the restaurant, but will not honor the certificate.

“We treat gift certificates like cash transactions, and have no way of knowing if someone has cashed it in or not,” she explained to me by phone. “That’s a very intensive manual process to keep track of.”

Watershed recently moved to a card system for issuing certificates, operated by First Advantage. “It’s a much easier process for our accounting,” explains Ross, “but we still have no record of who uses the card. Fraud does occur from time to time with these types of transactions.” She added that she had “no doubt” that Nist-Olejnik was telling the truth, but that with no way of knowing if the card had already been used, and no way to void or stop payment of the certificate, she had to treat Nist-Olejnik as she treats everyone else — which means the card won’t be honored.

This is a sticky spot for a restaurant to be in. Who’s right? What would you do?

Permalink | Comments (43) | Post your comment | Categories: Dining

Comments

By Me

October 23, 2007 1:47 PM | Link to this

If you lost it it’s your fault, how can you blame someone else for your issues? It’s like cash, if you lost it’s gone forever. The burden of proof and tracking should not be on the seller, they gave you a document for the transaction and you lost it. Come on people, stand up to your faults and don’t blame or expect someone else to take up where you fail.

By Becky

October 23, 2007 1:51 PM | Link to this

H*ll no they shouldn’t have to honor a gift card that I lost..If I can’t keep up with it, why is this the fault of the restaurant?

By Rodney

October 23, 2007 2:00 PM | Link to this

I agree with the previous posters. I don’t think the restaurant should honor the gift certificate.

I think the way the owner handled the situation is appropriate. Offering drinks, apps and personal service is quite appealing - although maybe not 200.00 worth!

How difficult is it to maintain a record of the number of the gift certificates? Like a tracking number of sorts? That way, if one is lost, that tracking number on the lost G.C. can be flagged and not honored, and a new one can be issued without anyone losing anything? I mean it wouldn’t take a computer whiz to set something like that up.

By Sam

October 23, 2007 2:24 PM | Link to this

I purchase gift certificates all the time and sometimes 3 or 4 at a time. I do not even know who they are going to be given to so how could I hold a restaurant responsible for knowing that information.I consider a gift certificate to be like cash. If I were to cash a check at a bank and lose the cash, I am sure the bank would not refund my money. Take responsibility for your own mistake and please do not blame the restaurant!!!

By Beware of REI

October 23, 2007 2:35 PM | Link to this

Never get or give an REI Gift card. They decided to not honor two of them that were given as gifts. Stay away!!

By MrHughes

October 23, 2007 2:50 PM | Link to this

It amazes me how often people expect a free lunch. The owner was being very nice offering what she did. My company uses gift cards… The only way I would consider offering a customer a new card for a lost one was if the customer had a full/valid card number and I could verify via my electronic system that the lost card had not been used. Then, I would deactivate the old card and issue a new one. With that much said… there is nothing to say that the card is lost and this couple or someone else would not try to walk in and use the deactivated card. I honor deactivated cards all the time and chalk it up to human error. Try telling that customer that their gift card is no good. The truth is that people need to be more careful. A firebox is less than $50… A $200 gift card should be kept under the same level of security as a t-bill, birth certificate, social security card, or old tax return. What amazes me is that Olejnik’s acknowledge that they should have been more careful with the gift, but allege poor customer service because they were not given something they had no right to. All the debit card proves is that the daughter spent money there. She could have had a meal there and spent a total of $200 with tax and tip. Would you blame the bank if you lost cash after withdrawing it from an ATM?

By Mrs. Warren

October 23, 2007 2:59 PM | Link to this

As soon as I receive a gift certificate, I can’t use it fast enough. I don’t understand why people hold onto them for long periods of time. If you lose it, too bad. The restaurant shouldn’t have to honor your unorganization.

By HS Teacher

October 23, 2007 3:28 PM | Link to this

I regifted some restaurant cards that I won at a meeting. There was nothing on the menu I liked.

I have a $10 card from Outback this is 2 years old. There is no longer one within 20 miles. It will be regifted in Dec to someone who lives close to the restaurant.

At Wal-Mart—you can add money to their card if you know the number. They do track their cards and at least it does not decline in value.

By Sherrie Nist-Olejnik

October 23, 2007 3:38 PM | Link to this

I am Sherrie Nist-Olejnik, the person who wrote to Meridith about the lost gift certificate. All I can say it that I guess most of you are much better than I! You must never misplace things or inadvertly throw things away. We lost it and we just should deal with it. Perhaps you’re correct on that account, but my point also was that it should be part of the company’s responsiblity to keep track of them as well. If companies offer gift certifcates, they should be required to track them, and as many companies already do, ask for identification when they are redeemed.

When I emailed Ms. Jones, I asked her what she would do in the following situation: A person purchases a gift card and has it sent in the mail to the recipient. The recipient never receives it. What would the policy be in that case? I mean someone could have intercepted it in the mail and used it. There would be no proof! Would the recipient just be out of luck? What do you think?

Also, I think it’s just ridiculous for anyone to think that someone found it in our garbage and cashed it in. What we received was a gift certificate on a white piece of paper. It was recieved prior to Watershed moving to gift cards. So…Someone is going to root through our garbage, find the gift certificate, and then drive to Atlanta to redeem it? (We live in Athens.) Come on folks!

I’ll put this whole thing behind me, but I’ll stand by my guns in believing that I businesses should hold some responsibility as well. And, appetizer or no appetizer, I’ll never set foot in Watershed; I’ll recommend that my friends stay away as well.

Sherrie Nist-Olejnik

By me

October 23, 2007 3:47 PM | Link to this

I will eat at Watershed if only because they took a stand against idiots with an over-inflated sense of entitlement like you, Sherrie.

By GeezGuys

October 23, 2007 3:59 PM | Link to this

What if they produced a cashed check from their daughter for $200, and said they’d meant to spend the money there, but lost it?

I love people who say “I know it was my fault, BUT…..I want someone else to assume full responsibility for what I screwed up.” Act like an adult, listen to the first part of that sentence coming out of your mouth. The second part sounds like a kid on the playground wanting a do-over.

Ms. Jones offered a complete explanation (not that it was necessary) as to why they couldn’t get a full refund. It was excellent customer service to offer them personal attention and compensation in the form of free appetizers and drinks.

How unfortunate Ms. Nist-Olejnik is unable to accept a graceful gesture and share partial responsibility for what is her error alone. Her solution is for the restaurant to take %100 of the hit. When that fails, she contacts the AJC to air her complaint when Watershed doesn’t comply with her version of how to run a restaurant.

Like I said…unfortunate.

By Spock

October 23, 2007 4:09 PM | Link to this

A slightly different scenario, years ago a woman I was involved with gave me a gift certificate to one of the big box electronics stores. She paid for it with cash. Shortly after, we parted ways. She then went back to this store with only her receipt and asked for her money back, and they actually gave it to her. She called me to tell me not to attempt to use the certificate as it was no longer valid. I really did not believe that she was being truthful so I called the store. To my utter disbelief, they verified that they had given her the money back and the certificate was no longer valid. This happened well over 15 years ago, before the advent of gift cards.

By GeezGuys

October 23, 2007 4:15 PM | Link to this

Ms. Nist-Olejnik, (if that was really you) if you can contain your anger for a moment, why do you continue to say it’s the restaurant’s responsibility to keep track of gift certificates? Do you run a restaurant? Most businesses will not reimburse you if you lose a product after your purchase, even if you can prove you bought it.

Yes, I lose things. I don’t demand the merchant replace them, though. It’s wholly my fault and as an adult, it’s my job to replace the item or go without, not ask others to account for my shortcomings.

Again, I think it is unfortunate that you can’t understand another point of view. Watershed is a pretty good restaurant, and judging by these comments, most people you talk to won’t agree with your recommendation to stay away based on your reasoning. They may not tell you so to your face, but you’re on pretty shaky ground for complaint.

By Rip 'n Read

October 23, 2007 4:15 PM | Link to this

I cannot resist the temptation to resort to name calling in this instance. Sherrie Nist-Olejink you are an idiot. A first class moron. And yes, I think I am better than you. I have lost many things in my life but I’ve never blamed someone else and expected them to replace it only on my word. You are what is so wrong with the world now. You have no personal responsibility for your actions. You expect others to fix your mistakes and shortcomings. I have never had any desire to eat at Watershed but now I will eat there only to make up for your stupidity. Hooray for the management at Watershed for taking a stand and not rewarding your carelessness. Stay in Athens, Atlanta already has enough stupid people.

By ron

October 23, 2007 4:19 PM | Link to this

I have definately lost gift cards just like you.I am,at times, unorganized.Unlike you however,I realize this is my short coming,not the issuer of the card.I’ll bet your daughter is shaking her head.

By Critic

October 23, 2007 4:25 PM | Link to this

Sadly, it’s crap like this that will, sooner rather than later, get the government involved. Two words here, Sarbannes-Oxley. Then people will won’t have to worry about their irresponsibility.

By steve

October 23, 2007 4:43 PM | Link to this

I think i will eat at Wathershed for the simple reason to support them in their decision not to honor the lost gift card.

By Dan

October 23, 2007 4:52 PM | Link to this

Why do people feel the need to hold businesses to a higher standard A transaction was made and subsequently an error causing $200 to be lost. The rest did not make the error so why should they take the loss? Now I would certainly ask the rest if they could reissue it and be grateful if they did, but to be mad at someone for an error you made is…well it’s way to common these days

By GeezGuys

October 23, 2007 5:12 PM | Link to this

Dan, this is why: let’s listen in on Ms. Nist-Olejnik’s thinking—-

A person purchases a gift card and has it sent in the mail to the recipient. The recipient never receives it. What would the policy be in that case? I mean someone could have intercepted it in the mail and used it. There would be no proof! Would the recipient just be out of luck? What do you think?

In this case, Ms. Hyphen-Hyphen apparently feels the business should cover the luckless recipient, when they have no responsibility in the matter. It’s a common sign of immaturity to say “oh, anyone but me should suffer bad luck. Who can I pass it along to?”

Life hands you setbacks, although the example hardly applies to our suffering heroine of this column; she lost the gift certificate. Understandable incident? Yes. Responsibility of hers? Heavens, no! All she knows is she’s out $200 for whatever reason, and someone else should solve the problem. Like the other diners of Watershed who pay bookkeeping expenses to cover her carelessness when she loses gift certificates.

Me, I’m glad to see a merchant not using other patrons’ money to cover fraud and lack of personal responsibility. You’re right, it’s far too common nowadays, and for businesses to cave in for ill-tempered complainers. Especially ones enabled by the AJC.

By it'sme

October 23, 2007 5:18 PM | Link to this

Regarding “someone could have intercepted it in the mail and used it. There would be no proof! Would the recipient just be out of luck?” If the restaurant were to give you another $200 certificate, I guess it would “just be out of luck”. I lost a $100 gift card a while back and it never crossed my mind to ask the store to replace it - I LOST IT! If you cashed a check and lost the money would you ask the bank to replace it? Oh, maybe you would.

By Anonymous

October 23, 2007 5:22 PM | Link to this

As a store owner, I honor expired gift cards—period. After all, cash was expended and no service was received.

A lost gift card should be honored if the receipt of purchase can be located. People on this blog act as though they’ve NEVER lost anything in their LIFE.

By Jenna

October 23, 2007 5:22 PM | Link to this

I’m so eating at this resteraunt…they should give you a few more free drinks for the publicity.

And for the record, no I don’t misplace or mistakenly throw away pieces of paper worth $200, especially when it was a gift from a relative. I also don’t expect someone else to compensate me when I act like an idiot.

By Sherrie

October 23, 2007 5:50 PM | Link to this

Well, it’s obvious that the folks who read and respond to this blog think I’m stupid and an idiot. So be it. Me, I’ll wait until Scott Peacock leaves Watershed for greener pastures and sample his cooking then. And kudos to Watershed for getting so much new business as a result of my stupidity.

And, just for the record, in general, I’m about the most responsible person there is. The next time you lose or misplace something, try not to be as hard on yourself as you have been on me. I’ll go lick my wounds at Per Se.

By GeezGuys

October 23, 2007 5:58 PM | Link to this

Anonymous, we’ve all lost things, that has nothing to do with replacing a certificate for some people who act like they’re NEVER responsible for anything in their LIFE.

And please, post the name of your store, the fraudulent of the world would love to know who to rip off. Honoring expired gift certificates is one thing, but giving them another after they may have spent or sold the first? Knock yourself out, but don’t criticize another business who doesn’t issue the same invitation to theft. Or cater to the irresponsible. Unless, of course, you’re willing to be as open with your name and policy as Watershed.

By southside girl

October 23, 2007 6:36 PM | Link to this

Going to Watershed this weekend! Never have been before but I’m definitely going now!

By Concerned Bystander

October 24, 2007 8:25 AM | Link to this

You know, I’m all for power to the people, holding businesses accountable, and standing up for the little guy. But this is, without a doubt, the most ridiculous thing I have ever read in my life. No, the restaurant does not have a responsibility, legally, ethically, or otherwise, to replace a gift certificate thrown out in error. It’s bad luck that it happened, and I feel sorry for Sherrie (as a terminally-distracted person myself, I’ve lost quite a few things in my life, and have been in similarly painful situations as Sherrie is), but expecting the restaurant to risk a $200 loss to cover for her mistake is unreasonable.

By Speakeasy

October 24, 2007 10:25 AM | Link to this

ms. idiot-retard, stupid people like you shouldn’t be allowed out of your house…much less at watershed. you F*cked Up. It’s your problem. nobody else cares.

By Sticking up for Sherrie

October 24, 2007 10:34 AM | Link to this

Is it really unreasonable to expect a business to keep track of gift certificates? I don’t think so. I actually think it is in their best interest to keep customers like Sherrie happy. Presumably they could lose more than $200. I personally will never go there after hearing about this incident.

By make peace not war

October 24, 2007 11:43 AM | Link to this

Businesses have to set policy, that’s a fact, and the restaurant followed its policy in this case. It doesn’t make a policy less valid just because we as consumers don’t understand it or it blocks us from what we think we deserve. Sherri attempted a smear campaign by going public with this issue. It obviously backfired based on the amount of criticism she has received and the fact that she is still pleading her case through this blog. She should take full responsibility for her error in loosing the gift certificate and move on! Sherri, accept the offer for drinks and appetizers. Who knows, you may just like Watershed although you seem too stubborn for that. I guess for some people it’s just easier to stay mad!!

By FCM

October 24, 2007 12:52 PM | Link to this

Sherrie, I am feel for your loss. It is not a matter of whether or not others have lost something, of course we have. It is a matter of how you handle it. If you lose your watch but have a receipt do you expect the store to replace it? Of course not. Well when your daughter bought the white piece of paper it became the $200 and a promise of goods when the white piece of paper is presented to the restraunt. You cannot present the paper (obviously because it is lost), therefore it is not redeemable for goods or services. This is basic business and not a personal slight on you. However, having gone public with this item, I can see that it would cause you embarassment.

By GeezGuys

October 24, 2007 1:05 PM | Link to this

Y’all are casting pearls before swine….undoubtedly Sherrie has stomped back to her corner of the playground, after not having found universal support for her case. Some people never learn, despite all attempts at explanations containing logic and ethical points.

The case is simple—-if Sherrie doesn’t get her way, Watershed is wrong. End of story. Don’t expect her to grow up now if she’s reached an advanced age without learning some lessons. Must be lots of enabling in her background, so remember this when y’all are raising your kids…do you really want to see them in the AJC displaying spoiled behavior?

By foodite

October 24, 2007 1:58 PM | Link to this

What really bugs me is that this loser is not only trying to get Watershed to compensate her for her carelessness, she is attempting to publicly smear the restaurant when she doesn’t get her way. I think Watershed was being more than generous to offer the free apps and drinks. What a jerk.

By lazermike

October 24, 2007 2:13 PM | Link to this

I think Watershed is within their rights not to honor the certificate. But everyone on this board is saying that Sherrie wants Watershed to “take the hit.” In fact, assuming that the certificate was not used, Watershed has received $200 for services it didn’t provide. Unless you believe that Sherrie is lying, Watershed is the one coming out way ahead in the deal, and Sherrie is the one losing $200. That’s fine, since losing the certificate is her fault. But there is nothing wrong with the restaraunt giving a customer with proof of purchase the benefit of the doubt. Businesses make a mint on selling gift certificates — they pocket the money and keep it until it’s used, if it’s used at all. I think some understanding on Watershed’s part — while not necessary — would be welcome.

By chris

October 24, 2007 2:50 PM | Link to this

There is absolutely no way I would ever expect a restaurant to honor a lost gift card. I can understand that in this situation, the woman appears to be telling the truth, but believe it or not, there are a lot of unsavory folks out there that do their best to scam businesses into giving them free things. I would only blame myself if I had misplaced/lost something like that; it would never even cross my mind to blame the restaurant.

By observer

October 24, 2007 3:10 PM | Link to this

If consumers leave gift certificates unused, it is there own choice or neglect. Businesses should not be expected to pay out money in situations like this because there are unused gift certificates lying around out there.

By Andy

October 24, 2007 3:34 PM | Link to this

Wow. This seems to have hit a nerve in the blog world to bring forth all this venom. But isn’t there a legitimate question lurking here? As we all know, people will lose things like gift certificates. Wouldn’t it be a nice idea — simply a nice customer service — if a place had some kind of system to help their customers out when this happens ?

By GeezGuys

October 24, 2007 3:53 PM | Link to this

Andy, nice customer service includes customers who don’t lose gift certificates.

If you read the story, there is a system to help customers out when this happens. Such a system keeps track of gift certificates after they are sold. Watershed’s owner explained why they don’t have such a system…it’s a “very intensive manual process”.

That means the staff would devote more time to tracking gift certificates, and less time to other aspects of running the restaurant. That would be managing the staff, serving food, balancing the books, taking care of customers…you get the drift, right?

So it’s a question of what you want Watershed’s staff to be doing, unless you want them to hire more staff so that the Sherrie Nist-Olejniks can lose things and then demand a replacement. More staff=more money spent. More money spent=higher prices.

So, essentially, Sherrie Nist-Olejnik wants us to pay higher prices to cover her own mistake.

And if those are really her posts, she’s incredibly selfish to not realize the world doesn’t revolve around her. She sounds selfish enough in the original story, so it doesn’t really matter.

Selfish, self-centered behavior hits a nerve, so this is why you see all the nasty posts.

By catwise

October 24, 2007 7:24 PM | Link to this

This fire storm of blogs has been quite an education for me. I would have assumed that a business issuing gift certificates of this magnitude would have some sort of tracking system, so I can see where Sherrie is coming from. I also agree with Lasermike’s point—if the gift certificate is indeed lost (and I do believe that to be true), Watershed has nothing to lose by honoring it, as they have long since deposited the $200.

By Samp

October 25, 2007 6:30 PM | Link to this

Ms. Jones was going above and beyond to offer drinks and appetizers. Sherrie should have stopped while she was ahead. I have never heard of a restaurant offering compensation for lost gift cards….I think Ms. Jones offer shows the restaurants willingness to work with customers.

By MrHughes

October 26, 2007 1:43 PM | Link to this

Sherrie, Sherrie, Sherrie…

Here’s the problem with your senario…

“A person purchases a gift card and has it sent in the mail to the recipient. The recipient never receives it. What would the policy be in that case? I mean someone could have intercepted it in the mail and used it. There would be no proof! Would the recipient just be out of luck? What do you think?”

The resturant is not responsible for something that is sent through the mail. In that case the shipper would be held responsible for the lost item. The resturant’s duty of care ended the minute they delivered the gift certificate to a 3rd party shipper, or to your daughter. If they have proof that they contracted for services with the 3rd party shipper that they did not recieve, then they can recover the value of their lost product because of the shipper’s negligence. But, that’s not what happened. They provided your daughter with a gift certificate which you promptly lost. Watershed fullfilled their duty of care. They are not responsible for tying a red ribbon or a bell to the gift certificate, so you could find it in case you misplaced it. They are not responsible for keeping track of gift card purchases for the irresponsible few when the majority of people understand that $200 is something to be put in a safe place. Everyone knows and it was likely printed on your certificate that it has cash value and should be treated like cash. Meaning that a lost, stolen, or damaged card will only be replaced when sufficient proof of the orginal purchase is shown. A $200 charge on a debit card does not suffice under that standard. A bank would not reinburse you $200 if it was lost in the mail. Your arguement would be with the shipper and the bank would say you are a fool. Truthfully, the shipper would say you are a fool too because only a fool would send cash through the mail. Anyway, this has been fun.

Count me in as another person who will be dinning at Watershed in the near future. I’m all for customer service. But, don’t believe in giving away the store and everything on the shelves in the name of customer sevice for someone who is not a good customer in the first place.

By atldiner

October 29, 2007 12:46 PM | Link to this

Many national retailers (think Crate & Barrel) allow gift card holders to register their card via a 1-800 #. It creates a safety net in case of loss. Watershed, however, is not a national retailer. Why would they even have an interest in what happens to a gift certificate once it leaves the restaurant? You should chalk it up to experience, learn from your mistake and take Watershed up on their offer of free drinks and appetizers.

By kimmie

October 30, 2007 2:08 PM | Link to this

why should it be the restaurants responsibility? that is idiotic. do you think that other businesses should do the same? i know it hurts that they lost it, but they need to be adults. they should take the free apps and drinks. would a retailer offer you free socks and underwear if you lost a gift card?

By Director of Operations

November 1, 2007 2:04 PM | Link to this

For the few of you think that tracking gift cards is an easy thing to do, it is not. I run a multi-unit chain here in Atlanta and we do not honor lost gift cards for the reasons many have stated above. True, there are electronic tracking systems, but they are quite expensive. If the restaurant does not do a great deal of gift certificate purchases and redemptions, they lose money on the electronic tracking. Then if there are multiple units, tracking by hand and keeping records up to date is nearly impossible.

Thank you all for your understanding on this matter. Restaurants are commonly held to a different rationale of thought than other retail businesses such as Target, Macy’s, Wal-Mart, etc., when it comes to expecting things for free or the world revolving around the customer. Yes, restaurants rely on the business of their customers, but they are just like every other business in the world - they’re trying to make money, not give it away.

Thank you.

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