When gift cards go bad
Find a few gift cards under the tree this Christmas? Too bad, the odds say that they’re about to end up in your sock drawer.
As much as $5-billion of the money that well-meaning givers have put onto gift cards will likely go to waste, according to TowerGroup in Massachusetts, who estimate that as much as 12% of gift card value is never spent.
The money, known as breakage in the industry, then reverts back mostly to the retailers and that loaded the plastic initially – a major reason that stores push gift cards with such enthusiasm.
Whether you’re giving or receiving, here are a few cautionary tips from Consumer Reports and other consumer advocates:
Keep it safe. As soon as you get a gift card, put it in a safe place, say, a file folder reserved just for gift cards.
Register it. Some cards must be registered with the issuer, especially if the card is used for purchases online or by phone.
Check it out. Consider buying cards only from issuers that allow you to check your balances online or by phone.
Swap it. Don't like that particular store? Then get together with friends and swap cards online here or here.
Spend it quickly. Use the card as soon as possible, especially if it expires or has a monthly maintenance fee.
Use it all. If the card balance gets so low that there’s nothing to buy, ask a merchant to do a split-tender transaction. That involves using the remaining card balance for part of the transaction and another form of payment for the rest.
Hold on to it. Don’t throw out the card when the balance is zero. Some merchants require it for returns.
By Gordon Powers, MSN Money
Posted by: Matter Of Change | Jan 4, 2022 9:59:07 AM
To Gift Card is Human, To Donate is Divine
In these difficult and trying financial times every one of us feels the burdens associated with a down economy but none more than those in need. We donate what we can afford to donate when we remember or are reminded that there are many less fortunate than us, less healthy than us, less capable of receiving the proper medications than us. We also donate when we are shown the ecological downsides of deforestation, global warming and any other form of desecration to our natural environment and the animals with which we share this glorious planet.
The time has come for a company to put aside huge profits as its bottom line and refocus its efforts on creating a world where every one of us can help make this a beautiful and viable global society: a company which enables everyone worldwide to pitch in without interfering with their own financial needs and burdens. Matter Of Change is that company and has created the product by which we can all donate in the smallest way without added expense and while still giving a friend or loved one a gift of their own.
We here at Matter Of Change have created a new concept in gift card giving: a way for everyone to give a gift worth much more than the cost of the actual card. To date, regular gift cards have monthly fees and expiration dates and with the new Card Act coming into effect in August those fees will be limited and the expiration date limited to 5 years BUT where does the money left on those gift cards go after the cards expire? Right now the issuing banks and corporations cash in big with those leftovers, to the tune of $8 BILLION and now some state governments are looking at that money and fighting the banks and corporations for a piece of the pie! That’s your money, but once the card is purchased and gifted it becomes the property of the recipient and if the recipient is not registered as the rightful owner that leftover money falls into the category of “unclaimed property”. And as we all know, if we have not used a gift card within the first 12 months or even within the first 6 months then the likelihood of ever using it is greatly diminished and we are left making a NON TAX DEDUCTIBLE DONATION to Corporate America and the State Governments.
Instead of this all-to-common scenario we have developed a system where the purchaser of the gift card “links” a charity of their choosing to their card then has the option to expire the card within the first 6 months, 12 months or let the card run its 5 year course and any leftover money would be disbursed according to applicable laws. If the purchaser chooses the 6 month or 12 month option they are instructing Matter Of Change to donate any balance left on the card (less a maintenance and processing fee) to the charity which they “linked” it to at purchase. Once the charity receives the donation a tax deductible receipt is either mailed or emailed to the recipient or purchaser of the card.
The concept is actually quite simple and extremely beneficial for every one involved yet finding a company willing to forego some of its initial profits for the betterment of society is, as one can imagine, very difficult. One concept people fail to realize is that Matter Of Change is a For Profit corporation and holds a preliminary patent on this concept and business model, allowing Matter Of Change to be the only company with the ability to provide this service and tap into an $8 BILLION niche which has to date been monopolized by the banks and corporations which already issue gift cards.
Just for a moment try to imagine what magic these cards can perform. We already spend hundreds of billions of dollars on gift cards worldwide for every occasion possible and estimates range from 8% - 14% of that money does not get used! That’s a huge profit for no service! Now imagine those people buying Matter Of Change gift cards and the same 8% - 14% going unused, that’s a huge amount of money being funneled straight to charities as well as receiving the benefit of a tax deduction. We are allowing people to donate from their usual spending rather than asking them to find something extra in their already tight budgets.
This plan is simple yet radical enough to shake up the gift card business and make our world a better place for humanity. Everyone can donate it’s simply a Matter Of Change!
Darren Cannao, President, Matter Of Change
www.MatterOfChange.com
Posted by: donotusegiftcard | Jan 8, 2022 5:04:51 PM
My recommendation to everyone is don't buy gift card. give money instead as the receiver can spent it anywhere and pocket the unused portion. finally it has no service charges and no expiring dates. I alway give money when I don't know what to buy for a gift.