Gift Card Blog - ScripSmart

Two Credit Cards + One Online Order = Great For Gift Cards

When making a purchase online, a common restriction is only being able to use one credit card per purchase. For the most part, consumers don't really need the the ability to use multiple credit cards. That is, unless you'd like to use a bank issued gift card (Visa, MasterCard, American Express).

This limitation can be rather frustrating. For example, if a person gives you a $50 Vanilla Visa Gift Card and your purchase total is $55.64, you simply can't use the gift card because the order total exceeds the balance of the gift card.

Earlier this week, I was ordering my iPhone 4 from apple.com and, lo and behold, apple offered a link to 'Pay with two credit cards'. This is the first time I've seen an online storefront accept two different credit card for one online purchase.

After clicking the link, another field appears for a second credit card. Furthermore, customers can specify the dollar amount charged by each transaction.

 

Consider me impressed, Apple! I would love to see this become a standard feature for all merchants doing business via the internet. Do you know of other businesses accepting multiple credit cards for payment? If so, let's hear about it!

Nebraska Consumers Stuck With Worthless Gift Cards

It's Happened Again.

This time in Lincoln, Nebraska. Center Stage Salon and Spa has abruptly closed it's doors, leaving gift card holders out in the cold. It's never good to see a business go under and when it happens without notice and gift cards are involved, it shows up on ScripSmart's radar.

Same Owners, Same Brand, Not Accepted

UPDATE: Both Center Stage and Salon locations are now closed and presumably part of the same bankruptcy filing.

What makes this story a bit more interesting is the fact there is another Center Stage Salon and Spa in Grand Island, Nebraska and it's owned by the same people, Pete and Nicole Upton. Initially customers were informed the gift cards would be accepted at the Grand Island location. However, gift card holders are now being directed to the Upton's bankruptcy attorney, Todd Mulliner. He is collecting names and amounts to tally up the total owed to consumers. This isn't likely to do anything to help gift card holders recover the funds they stand to lose because debt from gift cards will fall towards the bottom of the priority list for repayment when assets are liquidated.

I find it strange a business which operates another location with the same name just 100 miles away would decline to accept the gift cards issued by a sister location. Perhaps each location is a separate legal entity and the gift cards policy was always Redeemable only where purchased. However, if the gift cards were sold to consumers as redeemable at both locations; it's a raw deal. Either way, this damages the Center Stage brand still carried by the Grand Island Spa.

I called and the woman I spoke to was unsure if the gift card policy had changed since the bankruptcy; however, she confirmed gift cards purchased at the Lincoln location will not be accepted at the Grand Island location. Center Stage Salon and Spa's website has remained Temporarily Unavailable.

Other Businesses Step Up And Accept Worthless Gift Cards

It's good to hear some competitors in Lincoln are capitalizing on this situation by offering to accept Center Stage Salon and Spa gift cards: W Massage & Spa, Balance Massage & Esthetics and Advanced Aesthetics are all accepting the gift cards in one way or another. It's a savvy move to acquire new customers.

A Better Salon And Spa Gift Card

There is a better alternative for salon and spa gifts: the SpaFinder eGift Card. It's redeemable at over 5,000 spas worldwide, has no shipping fee and the chances of it suddenly becoming worthless are slim to none. In fact, the SpaFinder Gift Card could have been redeemed at Center Stage Salon and Spa.

Next time you're going to buy a gift certificate for a local favorite Salon and Spa; check SpaFinder to see if the Spa participates in SpaFinders gift card program and give a more flexible gift, the Spa Finder eGift Card.

 

10 Things Every Website Should Have When Selling Gift Cards

This post originally appeared on the Gift Card Advocate, where ScripSmart contributes articles about gift cards.

We do a lot of research on gift cards at ScripSmart. When adding a new gift card to the site, our first stop for information on the program is the the merchant's website. Surprisingly, the range of information disclosed varies greatly from merchant to merchant. Here's a list of 10 points we'd like to see everyone who sells gift cards disclose:

1. Gift Card Terms - A dedicated webpage to communicate the current terms and conditions of the gift card program. The Terms should cover many of the points listed below. See Target's Gift Card Terms for a good example of a simple, yet comprehensive Terms webpage and Apple's iTunes Gift Card Terms for a more lengthy version.
2. Prominently Discloses Fees and Expiration - And if there are no fees or expiration dates, use it as a selling point by touting the 'No fee, No Expiration' on the same page where customers can buy the gift card. I see companies miss this opportunity a lot and it's a  simple fix. If you are selling a gift card with fees or an expiration date, let people know about it up front; it will save you a negative customer experience down the road.
3. Gift Card FAQ - Dedicate a webpage with common questions people ask about the program. This is often similar to the Terms webpage, but written in a consumer friendly manner. See Disney's Gift Card FAQ for a good example. A good FAQ can save your company a lot of time and help make the potential customer feel comfortable with the purchase.
4. Balance Inquiry - What are the options for checking the balance: phone, online, in-store? Don't just refer to the back of the card for more details, such as the phone number.
5. Replacement Policy - If a gift card goes missing, is it replaceable? If so, what does the gift card holder need for a replacement? Include contact information for the group responsible for managing such requests.
6. Usage Restrictions - Are there any restrictions for use? If so, disclose them all. Some examples we see: accepted at participating locations, not valid for shipping, not valid for payment on a charge account, not accepted in-store, and so on.
7. Return Policy - Can gift cards be refunded for cash? Also, if an order paid for with a gift card is returned, how is the money transferred to the customer? For example: back on the original gift card, store credit, or cash refund.
8. Also Redeemable At - Is the gift card redeemable at sister brands? If so, let customer know about it and position it as a selling point.  TJ Max, I'm looking at you.
9. Required For Redemption - Is anything else required for completing a purchase with a gift card. For example, the Amazon.com Gift Card requires a valid credit card to complete the purchase even if the balance of your gift card coves the order total.
10. Card Issuer - What legal entity issues the gift card and what state is the company incorporated under?

Being upfront with your customers will pay dividends in the long run. If you believe disclosing information about the program will hamper gift card sales, it's time to consider changing your program to make it more appealing for your customers.

Gift Card Scammer Busted

I've talked about need to avoid exchanging gift cards for private transactions before. It's just too risky, especially when you don't personally know the other party.

Case and point

Oregon Police are accusing Brian Lee Beck of buying gift cards, selling them on craigslist and after receiving money for the card, reporting it lost or stolen. The result: a buyer holding a worthless piece of plastic.

Checking the balance will not protect you

It's important to note: his buyers would check the balance of the card before handing over the cash. Brian Lee Beck anticipated this and sure enough there were funds on the card at the time of purchase. However, when Brian Lee Beck reported the gift card lost or stolen, a new card was issued, leaving the old one worthless.

Portland police are looking for other victims of his scam. Take a look at the mug shot for this accused fraudster. If you have any information please contact Officer Joseph Cox or Detective Joe Luiz at 503-823-0335.

I'll be sure to follow this story. If Mr. Beck is convicted, we might just have to hang his picture in a Gift Card Hall Of Shame.

Resturant Closes, Voids Gift Card Purchases

Unfortunately the Gordon James Grill in San Clemente is closing doors. If you have a gift card, use it soon. The last day of operations is set to be Thursday, July 29, 2010.

A sad story for sure and you can bet Penny and Gordon are honorable people: they've taken the extra step of voiding all gift card purchases since June 1, 2010. That's a far cry from the shenanigans Sam Seltzer's pulled in May: abruptly closing doors and selling gift cards up to the last day of operations.

Penny, Gordon, I'm sorry to hear about the closure of your business. Thank you for looking out after your customers and voiding the gift card purchases; I know it's not required. If you open up a new restaurant, please let me know so I can take the trip, have a great meal, and help your new business grow!

UPDATE:

I've exchanged emails with Gordon and Rose and it turns out they even gave people cash bask when buying a gift card with cash. Wow! They've asked I pass along the following:

We have been voiding all gift card sales/purchases since May 31.  We found out on that date that we would officially select a date to close.  All credit card purchases for gift cards have been fully voided.  All cash gift card sales purchasers were told they were the lucky number 13 and we immediately gave them back their cash.  When we knew closing was certain we knew it was not the right thing to accept cash sales with the potential of the guest not being able to redeem.  I am happy with our decision.  Obviously we could not tell people we were closing until we had the chance to inform our staff and family.  This is a big, complicated decision.  Thanks for any information you can get out there for
us.  

Gordon Rose/GJ Grill

Gift Card Advocate - A Must Read Gift Card Blog

Gift Card Advocate has quickly become one of my favorite resources for staying on top of the gift card landscape.

Not only do they offer a comprehensive list of helpful resources for buying and selling gift cards. They've also done research on the percentages you'll pay and revive for gift cards in the secondary market. But most of all, I enjoy the blog. From gift card scams to industry analysis, I appreciate the frequency and variety of posts.

For example, Gift Card Advocate recently offered an insightful analysis of the secondary gift card market. In his article, Peter states there is a shift in the perspective of retailers from hoarding the value of unused gift cards, towards helping customers redeem gift cards in order to increase sales and reduce the dollar amount of gift cards which are turned over to the state as unclaimed property. He also questions if the trend will continue to the extent of retailers buying back their own gift cards, effectively cutting out the a middleman.

Bottom line: if you're following the gift card industry, be sure to bookmark Gift Card Advocate. In fact, I like what Gift Card Advocate is doing so much, I've asked them if they are interested in a partnership.

Walgreens Requests Removal From ScripSmart

On July 7th, 2010 Walgreens reached out and requested all mentions of Walgreens be removed from ScripSmart.com. Oddly enough, they offered no reason for such a request.

A Big Reason As To Why I Created ScripSmart

It's important to mention why I created ScripSmart: to make gift cards better for all. One of the great by-products of our easy to understand gift card scoring system is an overall improvement in the quality of gift card programs available.

Think about it, ScripSmart makes it easy to determine the quality of any gift card program; with the knowledge, consumers can make good decisions and support the programs which are best of breed.

Those with lower gift card scores will find it beneficial to make changes resulting in a better gift card offering. By creating a better gift card program for customers they will compete more effectively in the gift card marketplace. It's a simple idea and I think it will help shape gift cards for the better, no legislation required.

When Life Gives You Lemons

I figured a request like this was bound to happen sooner or later, but it's disappointing to see a  respected brand like Walgreens request the removal of our Walgreens gift card review, especially without stating their motivation.

Although I can't be certain, I believe Walgreens' low Gift Card Score, 57, is at the root of the removal request. I've asked multiple times if any information is incorrect, but the question has not been acknowledged. I understand a low gift card score is undesirable, but instead of taking the opportunity to make the Walgreens Gift Card program better, they took the opportunity to request our consumer review be removed.

Make Lemonade

I think Walgreens' low gift card score could have made some really good lemonade. By working with ScripSmart, they could improve their gift card score; and in turn, use a great gift card score as a selling point. A great score from ScripSmart will ease a buyer's concerns and help ensure they are making a good gift card purchase.

The Full Exchange

In the interest of transparency and to help ScripSmart users understand both sides of the story, the full exchange is below.

Tim from Walgreens wrote:

Would you please confirm where you are purchasing the Walgreens Gift Cards used in your program? Also, please send me a telephone number and street address that you can be reached at. 

Judd from ScripSmart wrote:

Hi Tim,

The link to purchase the Walgreens Gift Card goes directly to walgreens.com; I don't buy or sell gift cards, just direct consumers interested in a program to the seller. Address can be found here: http://scripsmart.com/contact

Looking at it now, it seems the product is no longer listed on the walgreens.com. Are you still selling the gift cards online? If not, I'll update the information on ScripSmart. If there is anything else which is incorrect, please let me know, we strive to make all information accurate.

Finally, if you are interested in hearing how to improve the Walgreens Gift Card Score. I'd love to help.

Tim from Walgreens wrote:

Please immediately remove all Walgreens information, links, etc. from your site. Please confirm that  this information  will be removed from your site. 

Judd from ScripSmart wrote:

Tim,

ScripSmart aims to be a complete resource for consumers evaluating gift cards and we intend to review every gift card. As a result of our mission, we do not remove gift card reviews upon request. Furthermore, ScripSmart's product reviews are protected free speech.  If you have some legal basis for your request to remove our review of the Walgreens Gift Card, I would be happy to refer your concerns to an attorney for further review.

Again, we strive to ensure all information published is accurate; if you believe the information we have collected directly from Walgreens is incorrect, please let us know and we will promptly update our review of the Walgreens Gift Card.

And no word since. Perhaps Tim has crafted a cease-and-desist letter and sent it via snail mail. In either case, let's make one thing clear: ScripSmart has no intention of removing gift card reviews; our service is legally sound, beneficial to the community and all gift cards are scored based on the same algorithm.

Effective Date Of New Federal Gift Card Law Has Been Amended

Congress has passed H.R. 5502, which amends the effective date of gift card provisions mandated by the Credit CARD Act of 2009. The next step is the President's desk and you can bet the farm he will sign it into law.

UPDATE: The President signed H.R. 5502 into law on July 27, 2010.

Expiration And Fee Requirements Remain The Same

It's important to be clear, this amendment does not change the fact beginning August 22, 2010 gift cards sold may not expire in less than five years, fees may not be charged unless the gift card has been inactive for 1 year and only one fee per month may be charged. 

The Reasoning Behind The Change

The purpose of the H.R. 5502 is to avoid the destruction of existing gift card stock already produced which do not meet the new federal gift card law requirements for fee and expiration disclosure; H.R. 5502 is also know as ECO-Gift Card Act.

In short, gift cards produced prior to April 10, 2010 will not have the same disclosure requirements originally described by the CARD Act of 2009. However, the extension is temporary and beginning January 31, 2011 the original disclosure requirements must be meet by all gift cards sold regardless of production date. Furthermore, during the extension gift card sellers must provide notice of fees and expiration "via in-store signage, messages during customer service calls, Web sites, and general advertising".

Bottom line, consumers will see gift cards sold this holiday season which contain incorrect expiration dates or do not fully disclose fees on the gift card, but merchants will relay the message in other ways.

How Fifteen Months Become Five Months

Consumers might wonder why such an extension is necessary when the Credit CARD Act of 2009 was singed into law on May 22, 2009 and the gift card provisions were set to go into effect fifteen months from the effective date of the bill (August 22, 2010). Fifteen months is plenty of time to plan for the transition.

The Credit CARD Act of 2009 contains a subsection for "additional rule making". Such additional rules were to be finalized no later than 9 months from the date the Credit CARD Act of 2009 was enacted, in other words, February 22, 2010. It turns out, the Federal Reserve didn't finalize the rules until March 22, 2010. As a result, the lead time was reduced from 15 months to 5 months.

My Thoughts

Delaying the effective date of consumer protection for gift cards is not something I'd like to see. However, these amendments are both reasonable and fair. At the end of the day gift card laws are moving in the right direction, but there remains much to be discussed.

For more information on gift card laws, take a look at ScripSmart's summary of the new federal gift card law and each state's gift card law.

The Gift Card Graveyard

Here Today, Gone Tomorrow

Bankruptcy, it's one of the risks of any gift card. Whether giver or receiver, ending up with a worthless gift card is a scenario you want to avoid.

We've recently written about Sam Seltzer's gift card holders being left out in the cold and while smaller operations may be more susceptible to going out of business, gift cards issued by well know national brands can also end up worthless.

For example, retail giant Circuit City went under for good in March 2009 and if you missed the opportunity to redeem your gift card, tough luck. Even though circutcity.com is up and running with the same logo, the new Circuit City does not accept gift cards sold by the previous operator. (Circuit City's brand was purchased in bankruptcy court.)

Right now, Movie Gallery, the second largest movie rental operation in the US is closing doors. Movie Gallery also owns the Hollywood Video and Game Crazy brands, all locations are closing. If you own a Hollywood Gift Card, Game Crazy Gift Card or a Movie Gallery Gift Card use it today.

No Ordinary Graveyard

We decided gift cards issued by companies which have gone under deserve a special place at ScripSmart. Funds were budgeted, negotiations commenced, agreements redlined...wait...we just created a web page and bought some cool tombstone graphics, never mind

We call it the Gift Card Graveyard and it's not your ordinary cemetery: no lives were lost, no funerals held, no gravediggers, just money sucked out of someones pocket by a business which could no longer sustain itself and a remembrance of a gift card gone worthless.

A ScripSmart Account Can Help

Pointing out problems is easy, solutions is what we really need. ScripSmart was recently mentioned in a Forbes.com article offering solutions to avoid getting suck with a worthless gift card.

If you receive gift cards and tend not to use them right away, open a free ScripSmart Account and add your gift cards.  When we catch wind of a company going under and you have that gift card in your account, we'll alert you via email and hopefully you'll be able to redeem it before the doors close for good. Just be sure to enable the Bankruptcy Alerts under your account profile.

Create Your ScripSmart Account

Unwanted Gift Cards: You've Got Options

It happens, people own gift cards they simply do not want. In fact, it happens so much entire industries have come into existence to make a profit. The good news is you have options for unloading that unwanted gift card. Depending on your personality you might take one of several approaches.

The Selfish Way: Sell Your Gift Card For Cash

While you won't receive the full value, you love the smell of cold hard cash. After all, what were they thinking giving you a gift card instead of cash? While the person who gave you the gift may not be thrilled to know you just sold their gift at less than face value, it's better than buying something you don't even want, right?

The Frugal Way: Trade Your Gift Card

Whether trading with a friend, co-worker or stranger in a marketplace for gift cards, you'll have a better chance of getting full value, but a tougher time finding a match. I once exchanged a $50 gift card with a co-worker and it worked out great. Are you bold enough to nag others and see if they are willing to make a trade?

If you're interested in these first two options, take a look at Gift Card Advocate's Resources page for companies involved in the 'unwanted gift card market'.

The Risk Takers Way: Regift Your Gift Card

Mention the word regift and people cringe, snarl and boo; nevertheless, I'm putting it on the table. The truth is, your recipient will likely have no idea you just gave them an unwanted gift card. The chances of getting caught are much lower than regifting that ugly sweater from your grandma that you gave to another family member. Just do yourself a favor and check the balance, expiration and fees before passing it along. If you're caught, expect to have people gossip about it for a long time.

The Good Guy Way: Donate Your Gift Card

Donating is perhaps the safest, most admirable and just plain feel good thing to do with your unwanted gift card. This one is so safe you could even tweet about it. Take a look at Plastic Jungle's non profit partner list and consider turning you 'misfortune' into a positive for others in need. Just be sure to read the instructions for donating carefully, it's not intuitive. Also, consider GiftCardGiver.com as an alternative.

The Lazy Way: Keep Your Unwanted Gift Card

After all, you might want it SOMEDAY and many gift cards never expire, right? Whatever! It's always best to use your gift cards sooner than later. Don't let them pile up!

ScripSmart Can Help

If you find yourself with several gift cards, ScripSmart can help. It's easy, just create a ScripSmart Account, add your gift cards and we'll send you personalized monthly summaries, bankruptcy alerts, you can even try our nag-me alerts. ScripSmart helps simplify gift cards.