Gift Card Blog - ScripSmart

App Store Gift Card Valued At $10,000 Will Be Given Away

Apple is at it again: they're giving away another $10,000 gift card. Last time they gave away a 10,000 iTunes Gift Card in celebration of the 10 billionth app downloaded. This time around it's a $10,000 App Store Gift Card to celebrate a similar milestone: 25 billion apps downloaded. The person who downloads the 25 billionth app could be the lucky winner.

Note: iTunes Gift Cards and App Store Gift Card are essentially the same thing, only called different things for marketing purposes.

First off, this is a great gift card promotion. At $10,000 the winner will be able to download a lot of stuff from the App Store/iTunes/iBooks. You can also gift things, so be sure to make note of who the lucky winner is, they'll announce it on the promotion's official web-page.

Every time you download an app, you'll be entered to win. You can also enter by submitting a web-form or calling an 888 number. I believe such an alternate method is a legal requirement when holding a sweepstakes; however, there is a chance a person who uses such an alternate method will win. Of course, that would means the person who downloaded the 25th billion app will not win.

Gift Card Promotion Tips

In late 2010, ScripSmart ran a "Review a gift card on ScripSmart, enter to win a $50 Amazon.com Gift Card" promotion. The goal was to drive more consumer reviews of gift cards, and by that measure it was a failure. It just didn't deliver more reviews for us.

While $10,000 is an extraordinary amount for a gift card promotion and one most companies will not be matching, I learned two valuable lesson regarding gift card promotions and this promotion reminds me of them:

1) Make the offer meaningful: while just about anyone would take a free $50 Amazon Gift Card, not just anyone will take the time to sigh up for an account, find a gift card and submit a review for the chance to win $50.

2) Put a full court press on marketing: After we launched the promotion, we placed a banner on the top of the website to let others know about it. I wrote a blog post and sent a message out via twitter. While those are all great steps, that is where the promotion of the sweepstakes ended. Looking back, I'd suggest a gift card in the $500 range and spend more time thinking about the most effective ways to let others know about the offer. 

The good news here is I would do it differently next time around. Cheers to them for putting together a great promotion worth talking about.

Gift Cards, Bankruptcy, Blockbuster and California Section Code 1749.6

Earlier this week, I received an email from a California consumer regarding thee gift cards. Clearly Liz had done some research and is a savvy consumer, she writes:

"I am in possession of 3 older Blockbuster Gift cards and I went to use them the other night. Opps, I found out that even though they are selling NEW gift cards, they are no longer accepting old ones.

I have looked into the California State Gift Card Law and California Civil Code 1749.6 that states even if a company goes into Bankruptcy, it needs to honor the gift cards purchased before bankruptcy.  I have called Blockbuster and got no where.

DO you have any advice for me? It's not really about the amount of money on the cards - it's the principle at this point."

My Advice

We should all aim to use our gift cards sooner than later.

If you're a person who tends to forget about them, sign up for a free ScripSmart account so you can be reminded monthly of the gift cards you own. We also send out alerts when we catch wind a gift card may soon become worthless.

In fact, we sent out several alerts to those who registered a Blockbuster Gift Card in their ScripSmart account and the first one was months before the gift card actually became worthless. It's ScripSmart's solution to a common problem consumers face with gift cards.

California Section Code 1749.6 

Liz also mentions California Gift Card Law in her note. Specifically, section 1749.6(b) which states:

"An issuer of a gift certificate who is in bankruptcy shall continue to honor a gift certificate issued prior to the date of the bankruptcy filing on the grounds that the value of the gift certificate constitutes trust property of the beneficiary."

I'm a fan of seeing such a law on the books because it helps give consumers one last opportunity to redeem their gift card while the business is liquidating it's assets.

But section 1749.6(b)  does not help Liz and other holders of the "Old Blockbuster Gift Card" recoup any value. It's confusing and one of the reasons I wasn't happy to see Blockbuster start issuing a new gift card less than a year after it's gift cards had become worthless.

Keep in mind, there are two different types of Blockbuster Gift Cards in consumer's hands right now:

Issued by Blockbuster, Inc. = Old Gift Card (worthless)

Issued by Blockbuster, LLC = New Gift Card

You have to look at the back of the card to determine which one you have. This difference offers some insight into why Blockbuster is not currently violating California Gift Card Law.

The Old Blockbuster Gift Card is what has been issued for years and it was honored while Blockbuster Inc. was in bankruptcy (up until April 2011). That process ended when Dish Network purchased the assets (brand, locations, etc.) of Blockbuster, Inc. and then formed Blockbuster, LLC. 

Blockbuster, LLC is a completely separate legal entity and is not in bankruptcy and never was in bankruptcy. Dish Network was given the option to accept the Old Blockbuster Gift Cards, but they were not required to do so by the Bankruptcy Court.

It's all much more confusing than it should be and I really wish Dish Network would not have introduced this level of confusion to the marketplace, it's simply bad for consumers and the gift card industry as a whole.

Valentine's Day Gift Cards Popular With Men

The National Restaurant Association (NRA) has competed a survey which produced some interesting results when it comes to Valentine's Day: gift cards are rather popular among men.

Given six options, 46% of men liked the idea of a gift card best. Granted a few of the other five options were not things you'd figure men would like (flowers, jewelry, cologne). Regardless, 46% is higher than I expected, even for men.

The NRA also produced the following chart. As you can see, gift card are not nearly as popular with the ladies, however, 13% still liked the notion of a gift card over other traditional options.

So, if you're thinking about a gift card for the man in your life, take a look at ScripSmart's list of gift cards for men and gift cards for Valentine's Day to get some ideas. If you're in a pinch for time, you can narrow the results by card type to show only egift card which are delivered via email and depending on the gift card, can be delivered within hours.

Next year, I'd like to see the NRA include a dinner date as one of the options, because I think most people are keen on having a nice meal with their significant other and among the options, a gift card comes closest.

For more details on the survey, head over to the National Restaurant Associations press release.

10 Great Gift Cards For Valentine's Day

Believe it or not, Valentine's Day 2012 is just around the corner. Last year, I wrote a piece on whether or not gift cards are a good match for Valentine's Day. In short, if you're shopping for that one special person in your life (spouse, girlfriend, boyfriend), it's probably not a good idea.

However, Valentine's Day has a broader meaning.  From buying a gift for a parent, siblings, or other family members, I've seen people use it as an opportunity to express their love to those closest to them. If you'd like to buy for someone under these circumstances, a Valentines Day gift card can be a nice treat and a great way to express your appreciation and love for others.

10 Great Valentines Gift Cards

Cinemark Gift Card

I was recently at the movies after a long hiatus and was instantly reminded of the joy in getting away from it all for a couple of hours.

Great for: Movie buffs, those who need to get away, students 

iTunes eGift Card

Between the App Store, iTunes and iBooks, this gift card is redeemable for tons of great content. The eGift Card version is conveniently delivered via email.

Great for: iPhone, iPad and iPod owners.

Zappos Gift Card

Shoes, apparel and great service make Zappos.com a gift card just about anyone will enjoy receiving. 

Great for: Daughters, Sons, Students, Moms and even Dads.

Tiffany & Co. Gift Card

When it comes to jewelry, Tiffany has a great brand. Just be sure to consider the price point of a items your recipient will likely buy. While you can go as low as $50 it's likely only going to be helping in the $250+ range.

Great for: A person you want to spoil.

Whole Foods Gift Card

With so much yummy stuff at Whole Foods Market, this gift card is great at any price point.

Great for: A budget starting at $20, anyone.

Magazines.com eGift Card

People love to read and a magazine subscription is a great gift because it will be delivered more than just once. I like the idea of the Magazine.com eGift Card because it allows the recipient to choose the magazine they like.

Great for: Parents, Siblings, Grandparents

Sephora Gift Card

Gift cards are great for people who love cosmetics, makeup and skin care. I wouldn't dare try to pick out another person's makeup because there are so many shades, colors and brands to choose among. 

Great for: Sisters, Daughters

Omaha Steaks eGift Card

Mmmmm, steak. And they sell some of the best out there. Good news is it's all delivered via mail, so no need to worry if there is a location near by.

Great for: Men, Cooks and anyone who loves great meat.

Southwest Airlines Gift Card

I love this gift card for a person who you'd like to have come visit you more often. What better way to say I love you and want to see you more, here is a flight on me.

Great for: Grandparents, Parents, Grandchildren, etc.

Amazon.com eGift Card

If you're still looking at this list and in the market for a gift card, go with a gift card for Amazon.com. With so much selection and free delivery via email, it's easy and sure to be used.

Great for: Anyone.

Oregon Cash Back Law For Gift Cards - Effective January 1st, 2012

June of last year, Oregon passed SB 756. In short, it requires all gift cards which are sold to be redeemed for cash if the balance is $5 or less and the gift card has been used at least once. The effective date of this legislation is January 1st, 2012.

I'm a fan of seeing cash back laws. The fact is, a consumer should not be required to spend more than the balance of a gift card in order to receive the full benefit and just 3.6% of store-issued gift cards offer a cash back option unless required by law. Because so few retailers offer a cash back policy, you can expect to see more states enact similar legislation in the future.

Not Retroactive, 2011 Christmas Gifts Are Exempt

This change to Oregon Gift Card Law is not retroactive. In other words, all of the gift cards purchased prior to January 01, 2012 are not covered by the new law. So if you received a gift card for christmas this year the merchant is not required to give you cash back. This is only for gift cards sold on January 1st, 2012 and moving forward.

Oregon Got It Right

There are several states with Cash Back Laws. The laws vary slightly, but I think a $5 threshold is reasonable for both consumers and businesses. Thankfully the legislators in Oregon decide to make this rather simple. However, the legislators in Massachusetts did a poor job of crafting a law which is easy for everyone to understand and, in turn, comply.

Massachusetts General Law Part II Title II Chapter 200A, Section 5D reads:

"A purchaser or holder of a gift certificate which, by its terms, prohibits the purchaser or holder from adding value thereto and which has been redeemed for at least 90 per cent of its face value shall make an election to receive the balance in cash or continue using the gift certificate. A purchaser or holder of a gift certificate which, by its terms, authorizes the purchaser or holder to add value thereto and which has been redeemed in part, such that the value remaining is $5.00 or less, shall make an election to receive the balance in cash or continue using the gift certificate."

That's a mouth full and not very easy for consumers or business owners to understand. I'm not sure why the notion of adding value would even be a factor. Furthermore, adding a percentage in the mix just seems to over complicate the situation. In short, a gift card is redeemable for cash if:

1. The gift card is not reloadable, has been used at least once and the balance is less than $5

2. The gift card is not reloadable and at least 90% of the funds have been redeemed.

For more detail, take a look at ScripSmart's full list of cash back laws for gift cards for each state. Cheers to Oregon's legislators for getting this one right.

Dish Network Gives Gift Cards Another Black Eye With New Blockbuster Gift Cards

This morning, I noticed Blockbuster had started selling gift cards, again. At first, I was excited at the possibility of all those worthless Blockbuster Gift Cards gaining their value back. Perhaps DISH Network Corp. had come around and done the right thing by choosing to accept gift cards issued before it's acquisition of Blockbuster earlier this year; it would be great for consumers and was long overdue.

DISH Network: A New Low

Unfortunately, DISH Network Corp. is still acting in a very selfish manner by choosing not to accept the old Blockbuster Gift Cards and they've just made things a lot worse by issuing new gift cards with the same brand less than a year after all the "old" Blockbuster Gift Cards became worthless. Furthermore, there is no mention on the company's website of the old vs new blockbuster gift cards. Blockbuster has chosen to ignore the matter all together in that regard.

Bad For The Gift Card Industry

DISH and Blockbuster's decision to start selling gift cards is terrible for the gift card industry, an industry known for getting bad press.

A company going out of business, and consequently it's gift cards becoming worthless is not even as bad as this situation. That's because:

• It's completely avoidable: Blockbuster has actively selected to purse this strategy. 
• It's very confusing: issuing gift cards with the same brand less than a year after millions of dollars was wiped out of consumer's pockets is horrible. 
• Nothing will make consumers fell cheated more than being denied of redeeming an old Blockbuster Gift Card while the company sells it's new Blockbuster Gift Cards at the same point of sale counter.
• It's scenarios like this which result in more legislation aimed at regulating the gift card industry.

Make No Mistake

From time to time you'll hear people say something like: "A few bad apples give the gift card industry a bad name." Make no mistake about it, DISH and Blockbuster are two of those bad apples. Not once, but now twice. I wish the Blockbuster's Leadership Team would think a bit more before acting so selfishly and giving the gift card industry a second black eye.

Announcing ScripSmart's Gold Gift Card Score Badge

I'm happy to announce a new badge color for gift cards on ScripSmart: Gold. In short, this new badge will be the highest rank possible for a gift card. Gift cards with Gift Card Scores of 90 or more will be awarded the Gold Gift Card Score Badge.

Before today:

After today:

In words, we've split up the old green badge classification to make room for the gold badge at the top. Gift cards scoring between 80-89 will still receive the a green badge. There has been no change to ScripSmart's scoring algorithm.

Why We Did It

Gold is synonymous with first place, crème de la crème or best of the best. When browsing ScripSmart for the best gift cards, it was easy for consumers to know green was the highest level possible because we frequently display a Gift Card Score Key; however, outside of ScripSmart, it's not as clear. After all, there's no comparison of colors and let's be honest, green is not synonymous with first place.

The original notion of ScripSmart's color scheme had more to do with the colors of a stoplight than anything else. Our goal remains making gift cards easy for consumers to understand and the new gold classification helps us achieve this goal.

There is also a big difference between a Gift Card Score of 80 and 99. Furthermore, it's helpful to identify those who are a cut above the rest. If a gift card scores in the 90's it's one of the most consumer friendly gift card products available and it's less likely to have any gotchas a consumer will encounter.

I also believe the new gold badge will help make it easier for merchant's to adopt and strive for a gold ranking. While not every gift card will every be a perfect 100, I believe ScripSmart's product reviews give gift card issuers important feedback as to how their program compares with others.

Gift Card Score Everywhere

In the end, your going to start seeing Gift Card Score in more places. It will help consumers make better decisions and, in turn, improve the gift card industry for both consumers and merchants.

Cinemak has been an early adopter of embracing their Gift Card Score. The Cinemark Gift Card is a terrific program. Earlier this year, they let other know if by placing their Gift Card Score directly on their website using a widget ScripSmart developed. It's a small snippet of code which always reflects their current Gift Card Score. It's something ScripSmart provides to gift card issuers listed on ScripSmart free of charge and I'd say it demonstrates a commitment to deliver a gift card program which is consumer friendly.

Bass Pro Shops has also been an early adopter of Gift Card Score. They're going to be the first to display their Gift Card Scores in-store at locations nation wide. Bass Pro Shops truly understands the importance of offering a consumer friendly program and by displaying their excellent Gift Card Scores, with their help ScripSmart in well on it's way to accomplishing our mission of making gift cards better.

American Airline's Chapter 11 Bankruptcy: Use Your Gift Cards

Yesterday, American Airlines filed for Chapter 11 bankruptcy protection. Those who added the American Airlines Gift Card to their ScripSmart Account received a bankruptcy alert via email suggesting they redeem their gift card as soon as possible. It's an easy way for ScripSmart to help consumer avoid worthless gift cards. (You can create your free account here.)

It's never good to see a bankruptcy and for gift cardholders, it serves as what may be their last signal to use a gift card before it becomes worthless. The fact is, most companies continue to honor and sell gift cards after filing for bankruptcy protection. It's also true many company's emerge from Chapter 11 in a better financial position to serve consumers for years to come and continue accepting gift cards. However, when a merchant files for bankruptcy protection, there is a much greater risk it's gift cards will become worthless.

We don't need to look back far to see two Chapter 11 filings from large national merchants result in worthless gift cards. Blockbuster filed for Chapter 11 in November 2010 and it's gift cards were worthless in April 2011. Similarly, Borders filed Chapter 11 bankruptcy protection in February 2011 and it's gift cards were worthless in September 2011. The bottom line is, there a very real possibility of a gift card becoming worthless and gift cardholders don't need to risk it. Unlike most creditors, they hold a loan which can be redeemed for merchandise at any time.

As a result of the bankruptcy, both American Airlines Gift Cards are currently ranked "Buyer Beware" by ScripSmart:

Proper Disclosure

Often times when a company files for bankruptcy protection, gift cards are not mentioned on their website or press release. However, there are companies which specifically address gift cards. Thankfully, American Airlines is one of those companies. On their website this morning I noticed a prompt stating gift cards would still be accepted. I reads:

"American Airlines is continuing to sell and honor AA Gift Cards as usual.American is flying normal schedules and all customer programs are continuing as usual.Additional information about the Chapter 11 reorganization is available at www.aa.com/restructuring."

The company also has constructed a webpage dedicated to the restructuring which also addresses gift cards. Both are great to see from my perspective and help relay important information to consumers. I'll add, if you own an American Airlines Gift Card, use it before you lose it.

3 Things Consumers Get About Gift Cards That Consumer Experts Don't

Black Friday is fast approaching and the chatter around holiday gift card giving is picking up. While there are some helpful and productive pieces published by the media this time of year, many fall short of offering solid gift card advice for consumers.

There's a disconnect

One thing is clear, most consumer experts don't like gift cards; meanwhile, most consumers like gift cards. A disconnect between the advice of consumer experts and the preferences of consumers is nothing new; however, it's time for many experts to take another look at the gift card advice they are giving to consumers.

Before I begin, at ScripSmart we both identify and develop solutions to the pitfalls of gift cards. Gift cards are not perfect; from ScripSmart's list of gift cards to avoid to our rating system, Gift Card Score; ScripSmart frequently points out the downsides of gift cards.

That written, some of the advice out there is simply not helpful for consumers and at times it's flat out wrong.

Disconnect one: Gift cards are popular with gift givers, not gift receivers.

This type of story often implies the notion of gift cards being an easy way out, impersonal and often a last minute decision. In short, the only reason gift cards are popular is because it's convenient for the gift giver and if you give a gift card you're doing the recipient a disservice.

The reality is most consumers like receiving gift cards. According to a the National Retail Federation's 2011 Annual Holiday Survey, gift cards are once again the most requested gift with 57.7% of survey respondents indicating they'd like to receive a gift card for the 2011 holiday season.

Here are the results for the past eight years, as you can see gift cards are actually gaining in popularity:

Naturally, there are people who don't like to receive gift cards, but I think it's important to let the gift giver discern whether a gift card is appropriate for their recipient.

Disconnect two: A wise alternative to a gift card is cash. 

According to this line of reasoning cash has no strings, no fees and can be redeemed anywhere. Therefore, it's a better gift than a gift card and should be used in lieu of gift cards.

The truth is, cash is not always a viable alternative to a gift card. For example, one might feel a bit uncomfortable by giving their child's teacher cash to show appreciation during the school year. On the other hand, a Target Gift Card seems quite appropriate.

Personally, I love cash and it can make a great gift. However, when it comes to giving consumers gift card advice, telling people to "give cash, not gift cards" is a bit like telling people to never use credit cards when offering credit card advice. While the advice will certainly achieve a desired result, it's just not very helpful to most looking for advice on the subject.

Furthermore, Gift Cards aren't just for gift giving. Retailers are continually using gift cards as a way to compensate consumers. Walmart, Amazon, and Apple are just three of many. In other words, gift giving is just part of the gift card story. Consumers are obtaining gift cards form a number of sources.

Disconnect three: Gift cards should be avoided because some are never redeemed.

I've seen estimates claim as little as 5% to over 25% of gift cards go unredeemed each year. Under this line of thinking, there is a good chance the gift card you buy will never be used, so think twice before you waste your money on a gift card.

I'm of the belief consumers are pretty smart and don't like to waste money. Ironically, not wasting money is a big part reason gift cards are so popular: we all hate receiving unwanted gifts; worse yet, we hate giving unwanted gifts. Ultimately, people feel the money placed on a gift card has a better chance of being used wisely than if they simply pick a gift for the recipient.

Gift cards have their place

It turns out they have a pretty big place in our culture of gift giving. According to the Tower Group, an estimated $100 billion in gift cards will be sold in 2011.

While there are certainly occasions where a gift card is not an appropriate gift, it's important to recognize not all gift cards are created equal, not all gift cards are bad and most consumers are capable of determining whether or not a gift card is appropriate.

I'm off my soapbox. What do you think?

Both Dippin Dots, Filene's Basement File For Bankruptcy Protection

Consumers who own a Dippin Dots eGift Card or Filene's Basement Gift Card should go out and redeem ASAP. Both companies filed for Chapter 11 bankruptcy protection this week.

Dippin Dots offers consumers an eGift Card which is accepted an all 142 locations. The company's "ice cream of the future" might soon become a thing of the past. According the Wall Street Journal, the Dippin' Dots, Inc. owes Regions Financial Corp. $12 million and has resorted to bankruptcy protection in order to avoid foreclosure. It appears Dippin Dots will continue to fight another day. Hopefully the company can emerge from bankruptcy and continue honoring gift cards.

Filene's Basement, on the other hand, will be closing it's doors for good. I sent in a note to confirm gift cards would be accepted during the liquidation process, but have not heard back. The historical discount retailer, founded in 1909, has 21 locations primarily in the Northeast.

 

 ScripSmart Accounts Help You Avoid Worthless Gift Cards

ScripSmart will send you helpful alerts for gift cards you own. From a handy monthly summary of the value of your gift cards, to bankruptcy alerts when a company in in jeopardy of going under. It's easy, just register your gift cards with ScripSmart and configure the alerts you'd like to receive. Create an account here.