by OldGuy » 29 Oct 2023, 18:43
Way back in the 70s and early 80s, I lived on the west coast and my grandmother was still in her old home on the east coast. I thought I had found the perfect gift for Christmas and sent something similar every year while I lived out there. It was a combination gift certificate and catalog. Everything in the catalog was the same price. You could get them in a selected price and I usually sent her a $50 catalog. She could choose any item in that catalog by just sending in an attached card and it would be sent to her. She died in 1984 bringing an end to that tradition.
I was stunned and saddened when relatives cleaning out her estate came across a pile of those catalogs and gift cards. She had never cashed any of them in.
They finally packaged them all up and sent them back to me about 10 years later to see if I could use them myself. Well, back then, unused gift cards were charged an annual fee to keep them open. If you let it ride, those fees would eventually gobble up the entire value and they were no longer valid. I found that to be true with every one of them.
That was the way it was back then. If you bought a gift card from anyone, they would set up an annual fee to maintain them and it was worth a lot less than you paid if you went beyond the first year. They would eventually become worthless if you kept them too long.
I was not the only victim. The federal government had received lots of complaints and changed the law. Merchants in the US are required to honor gift certificates at full value forever and are forbidden to charge annual fees to keep them open.
I will never buy a gift card again. You are basically handing the merchant cash for nothing but a receipt. If it is not used, it is pure profit for them. If you give a gift card to someone who has no interest in shopping at whatever store you selected, the card ends up not being used. You wasted your money and that merchant ends up with free profit. Think about that. It is really pretty stupid, especially for those who check the price on everything they buy as recently discussed on another ForumCoin topic.
If you really must give a gift card or certificate, give a Visa, Mastercard, check or some other form of cash that can be used anywhere. At least that makes it more likely it will be put to use.