Hello -
Thanks for your question. Should you choose to rate this answer,
please ask beforehand for any additional information or clarification
you may require. Thank you for your understanding.
There is a website dedicated to the topic at:
Use Gift Certificates
http://www.usegiftcertificates.org/
whose purpose is to:
"...promote an awareness of retail companies, travel suppliers and
incentive agencies that offer gift certificates as a viable option for
use in premium and incentive programs. To establish a better
understanding and appreciation of gift certificates on the part of the
premium/incentive industry, of the potential benefits and to enhance
the status of gift certificates and of the members of the
association."
All sorts of articles and case studies are featured at the site on these pages:
http://www.usegiftcertificates.org/articles.htm
http://www.usegiftcertificates.org/case.htm
Among the many articles and resources on the site, there's a white
paper on The Role of Gift Certificates and Gift Cards in Corporate
Recognition and Incentive Programs
http://www.usegiftcertificates.org/White%20Paper/White%20Paper-winter-03-fin-2.pdf
Here are some additional articles I have found on the topic:
Retain Business With Gift and Loyalty Cards
http://www.entrepreneur.com/article/0,4621,309124,00.html
Retailers discovering benefits of gift cards
http://www.retailers.com/news/retailers/03may/mr0503giftcards.html
Grow Your Business -- Offer Gift Cards
http://www.retailers.com/news/retailers/03june/mr0603larry.html
GIFT CERTIFICATES FOR PREMIUMS/INCENTIVES
http://www.cardex.com/articles/3060.html
Gift Cards May Come With Catch
http://www.wral.com/money/2643314/detail.html
Search strategy:
"gift cards are" business advantages
"gift cards can" business
"gift certificates" |
Clarification of Answer by
jbf777-ga
on
02 Jan 2004 15:21 PST
That last search strategy item should be replaced with these two:
"gift certificates are" business
"gift certificates are" offering advantages
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Clarification of Answer by
jbf777-ga
on
02 Jan 2004 15:28 PST
This article mentioned above seems particularly pertinent:
http://www.cardex.com/articles/3060.html
GIFT CERTIFICATES FOR PREMIUMS/INCENTIVES
How to use gift certificates in incentive and promotion programs and
how to find the right supplier for you. Includes a comprehensive list
of gift certificate suppliers.
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Request for Answer Clarification by
phoebeinbrazil-ga
on
02 Jan 2004 17:10 PST
This looks like a lot of useful information which I will go through.
I wonder if you know if any of the sites address the issue of carrying
liabilities on your books. Can I refuse to honor a gift certificate
after say six months, and, if so do I need to post that information
prominently when selling? Thanks
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Clarification of Answer by
jbf777-ga
on
02 Jan 2004 18:59 PST
Hello again -
Thanks for your question.
This kind of thing varies by state. For example, I have found a
website which talks about a law in California governing expiration
dates:
http://www.findarticles.com/cf_dls/m4PRN/2002_Dec_4/94892728/p1/article.jhtml
"...[A] 1997 law, Section 1749.5 of the California Civil Code makes it
illegal to sell gift certificates in California that have an
expiration date (with certain exceptions for food, non-profit
fundraisers and awards programs). This includes sales over the
Internet. Basically, consumers with nonconforming certificates must be
able to redeem gift certificates for their cash value or receive a new
gift certificate at no cost at the retailer's option."
I would think you'd certainly want to have it prominently displayed on
the gift card itself if you plan on having an expiration date.
Can you tell me what state you're in? I'll see what I can find.
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Request for Answer Clarification by
phoebeinbrazil-ga
on
03 Jan 2004 10:58 PST
That looks like a bingo. I am in California. As I understand your
quote (haven't had time to go to site as have company till after the
weekend), I cannot ever wipe out that liablity or limit the ability of
the holder just to redeem for cash instead of merchandise. This is bad
news but exactly what I needed to know. Thank you.
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Clarification of Answer by
jbf777-ga
on
03 Jan 2004 18:07 PST
That worked out well. :)
Here is the official legislation from the office of the attorney general:
http://caag.state.ca.us/opinions/published/00-701.pdf
Actually, the wording is a little confusing. That one website
interprets the the last line of the following,
"On or after January 1, 1997, it is unlawful for any person or entity
to sell a gift certificate to a purchaser containing an expiration
date. Any gift certificate sold after that date shall be redeemable
in cash for its cash value, or subject to replacement with a new gift
certificate at no cost to the purchaser or holder."
as referring to nonconforming gift cards only. I.e., those gift cards
that are sold with an expiration date after 1/1/97 shall be redeemable
for cash, or replaced with one that is valid. I believe this is the
correct interpretation.
Because the wording doesn't say "Any nonconforming certificate sold
after that date shall..." or "Any certificate containing an expiration
date sold after that date shall..." it might lead one to believe that
ANY gift certificate sold after 1/1/97 is fully redeemable for cash
after 1/1/97. But that wouldn't make sense, because it nullifies the
purpose of a gift certificate: if all gift certificates are redeemable
for cash, then it limits the exclusivity of the card to any one store,
which is the whole purpose of a gift certificate/card.
If you have any additional questions, please ask before rating this answer. Thanks.
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