Gift Cards: A Convenience or a Ripoff?

David · #1 12-28-2007, 02:13 PM

I am beginning to suspect the "valid" uses of gift cards. I am beginning to think that the very concept of gift cards is a sham. Think about it. What is the usefulness of a gift card over plain cash or a check (as a gift)?

When you give cash (never mind the crassness or the vulgarity of it because a gift card is no less crass in strict etiquette terms), you enable the recipient to spend it as he wishes: shopping anywhere, charity, savings, &c. A gift card does not allow this. It essentially forces the recipient to shop at one vendor or one distributor.

Also, when you give cash or a check, what you pay is what the recipient receives. Very often with gift cards, there is a fee attached to the initial purchase (as with the American Express gift card).

Furthermore, the recipient of a gift card usually finds it difficult, if not impossible, to spend the exact amount of the card value on a purchase. Either you buy less than the value of the card, in which case both the purchaser & the recipient "lose" money, or you buy more than the value of the card, in which case the recipient must pony over additional money.

Yes, indeed. I feel that gift cards are a racket. They're a form of advertising that is free for the vendor or distributor. Notice all the bright colors they're made in, & the way they're all stacked up & displayed together in your market. All those shiny bright colors luring unwary shoppers, especially around holiday or birthday times. What a ripoff! If you're going to do the quick, crass thing, just give cash!

GODDESS6 · #2 12-28-2007, 02:25 PM

i see what you are saying~ the only gift card i have ever bought was at one of our local malls, for 50.00~ there was no fee & you could use it at 4 of the 5 malls that we have at any store~ & if you spent less than the amount, they give the difference back in cash~ otherwise i agree w/ you that they are a rip-off~

petep9000 · #3 12-28-2007, 02:32 PM

Quote:

Originally Posted by David

I am beginning to suspect the "valid" uses of gift cards. I am beginning to think that the very concept of gift cards is a sham. Think about it. What is the usefulness of a gift card over plain cash or a check (as a gift)?

When you give cash (never mind the crassness or the vulgarity of it because a gift card is no less crass in strict etiquette terms), you enable the recipient to spend it as he wishes: shopping anywhere, charity, savings, &c. A gift card does not allow this. It essentially forces the recipient to shop at one vendor or one distributor.

Also, when you give cash or a check, what you pay is what the recipient receives. Very often with gift cards, there is a fee attached to the initial purchase (as with the American Express gift card).

Furthermore, the recipient of a gift card usually finds it difficult, if not impossible, to spend the exact amount of the card value on a purchase. Either you buy less than the value of the card, in which case both the purchaser & the recipient "lose" money, or you buy more than the value of the card, in which case the recipient must pony over additional money.

Yes, indeed. I feel that gift cards are a racket. They're a form of advertising that is free for the vendor or distributor. Notice all the bright colors they're made in, & the way they're all stacked up & displayed together in your market. All those shiny bright colors luring unwary shoppers, especially around holiday or birthday times. What a ripoff! If you're going to do the quick, crass thing, just give cash!

I never thought of it that way. The corporate bigwigs probably bank on the fact that these gift cards can only but rarely be used to their maximum- and the extra dollar and change left behind is profit in their pockets.

GarboSpeaks! · #4 12-28-2007, 02:48 PM

Initially the gift card was like a pre-paid rain check.Person A wants an item. Person B goes shopping for it. Supply vs. demand has put person B out of luck. Likely cause they shopped last minute. But here's a clever deal. Buy a gift card for person A in the amount of the coveted item, and when it comes in , they can pick it up! Person B is happy. Person A can wank off that they have to wait until after Christmas, but they'll get what they want, so I suppose they are happy too!

I buy gift cards all the time and I HATE it! I hate giving them as a gift. Makes me feel like I didn't even try or care. BUT, this year, I gave one to my Mom & my Dad. They generally buy what they want, when they want. I didn't have so much $ to spend on them, and they like me are over shoppers, so likely they'll fork over more money over the card. That's just how my family is. We spend way too much money.

I could never understand people that leave a tid bit on there. Spend the extra $5 or whatever in addition to the card balance, but do not leave unused money on those cards!

Miss Vicky · #5 12-28-2007, 03:19 PM

I think that the buying of gift cards can be appropriate in the right circumstances.

For example, if you are buying for someone who does not live in your area - say, an out-of-state relative - it's much easier, less expensive, and more practical to send them a gift card or certificate than it is to buy something for them and then ship it to them. Gift cards/certificates are also great for things that aren't really tangible, like a nice dinner out at the recipient's favorite restaurant or a movie at their local theater. They're appropriate as a gift for someone that you don't know well enough to buy something more personal, like a coworker.

I often buy and receive gift cards and certificates and I quite like them. This year, I gave my brother (who lives out of state) a gift card for Lowe's, since he is constantly working on home improvement projects and could always use a little help financing them. A friend of mine is a full-time student and is always short on cash for recreational purposes, so in addition to actual gifts, I gave her a card for Hollywood video so that she and her boyfriend can rent some movies together. Gift cards also are great if given in conjunction with an associated gift - like the iTunes card I bought to go with the iPod I gave to a friend of mine.

They're also great for people who are impossible to shop for - like me. This year I received cards for Petco, Amazon.com, and Brendan Theaters. Which, to me, are all excellent gifts. I have a lot of pets and am always in need of something for them, so it helps to have that extra money to get what I need (or, if I feel like it, to get another pet). I also spend ridiculous amounts of my own money on Amazon and it's nice to spend someone else's money for a change. Same for my movie-going. I go to the theater as often as once a week (depending on what's out) and the cost of tickets and concessions adds up quickly, so again it's nice not to spend my own money on it.

bucklind17 · #6 12-28-2007, 08:25 PM

I enjoy gift cards partially because of the idea that I have to spend them in one place. I usually receive them for places I would spend money in anyway, and having a gift card assures me that I will definitely go buy that new pair of jeans I desperately need rather than spending the money on a nice dinner out or something I need less. I don't have a lot of spending money, and while I would never balk at cash, a $50 gift card to Old Navy is just as appreciated. In fact, this Christmas, I got three gift cards to Old Navy and am rather excited about my Old Navy shopping spree for spring clothes that I will have in the near future!

On the other end though, I only like to give gift cards if I know that the person really likes the business I'm buying it from or if I have NO idea what else to get. My friend and I drink Jamba Juice like there is crack in them, and I know the Jamba Juice gift card I received from him was given to me because he knows how much I love them, but hate how much they cost. It would have been the same reason I would have given one to him (and I almost did!). But the Starbucks card I gave another friend was because I wanted to give her something, but didn't want to spend a whole lot of money on it and wanted to get her something she would at least use. So I think there's pros on both the giving and receiving ends.

JWS · #7 12-28-2007, 08:45 PM

Also, something like 5% of gift cards are never redeemed...lost or forgotten about. Some even have expiration dates.

WelshWitchPMD · #8 12-29-2007, 11:53 AM

I think that gift cards are a good idea for the most part. I actually gave 4 Dunkin Donut gift cards to 4 of my co-workers who I know will use it.
I also received a few DD gift cards myself. I think that it is much nicer than putting $5.00 in a card. Sure they know how much you spent on it but it shows that you did put a little thought into it by making trip to get it. It also just makes it a bit more personal when you know what they like.
I knew that my Dad wanted to get me something a bit more personal than say cash so I told him that Rite Aid and Walgreens gift cards would be a great gift. My Dad is 81 and I certainly didn't want him to have to go out of his way to get me a present. Sure enough I got a $10.00 card to each store which I will most likely use today. He still gave me some cash but the gift cards were a nice touch.

I can't see getting a gift card that has a fee attached. That is kind of crazy. I think that certain gift cards are a good choice if you know something about the person. I mean if someone is into health foods and you gave them a Dunkin Donuts gift card that would not be such a great idea.