Gift Card Blog - ScripSmart

Gift Cards: A Great Gift For Teachers

The teachers in our lives give us so much and it's well known a teachers salary is far below the value they provide. Often we want to give back and say thank you for all the hard work.

A gift card can be a great way to say thank you. ScripSmart has complied a list of the best gift cards for teachers to help you find a great gift for the teacher in your life. You'll notice a few common themes for these gift cards: most can be used for school supplies, others for a cup of coffee or perhaps a bite to eat.

Food Might Be Thrown Away

A common way to say thank you to a teacher is baking sweets or giving food. In today's day and age, it might not be the great gift it once was.

Recently, while visiting with a friend of mine who is also teacher, I learned food she recived from students would be thrown away. It was a bit surprising; however, after learning about her concerns, it actually made sense.

The risk of a mischievous student's efforts to sabotage the brownies and make her sick outweighed any obligation to make use of the food. In the end, she would say thank you, throw the food away and tell the students it tasted great.

Gift Card Score® Can Help

Gift cards can have their downsides and no one likes to learn of gotchas restricting the use of a gift they received. ScripSmart's Gift Card Score can help you easily evaluate the quality of a gift card; the higher the score, the better the chances you're giving a gift which is among the most consumer friendly.

State Laws: Get Cash Back For Your Gift Card

I recently received an email from a ScripSmart users asking for advice. Apparently a company was not complying with a state gift card law requiring a cash refund for gift card balances below a certain threshold. After multiple requests, the retailer refused to give her cash back for the funds remaining on the gift card.

Know Your State Laws

There are several states with laws allowing you to get cash back for your gift cards. ScripSmart has a handy page listing each state which has enacted a law for receiving cash back for gift cards. We'll keep that page current.

Here is a list as of today:

• California - gift cards less than $10
• Colorado - gift cards less than $5
• Maine - gift cards less than $5
• Montana - gift cards less than $5
• Rhode Island - gift cards less than $1
• Vermont - gift cards less than $1
• Washington - gift cards less than $5
• Massachusetts - after 90% of the gift card has been redeemed

Exceptions To The Rule

There are always exceptions to the rule. Often states specifically exclude certain types of gift cards from it's laws. For example, promotional cards given away as part of a reward or loyalty program. Another type we've seen excluded is gift cards sold bleow face value for fundraising purposes. In other words, the laws may not be as cut and dry as one might first believe.

What To Do If You Believe a Company Is Not Following The Law

If you are having trouble getting cash back from a particular company, ScripSmart suggests taking a few steps. Remember, it always helps to be nice and speak with a senior member of the staff.

1. Find out if the gift card in question is excluded by state laws for any reason.
2. Politely point out the specific state law and section code to the company. It may be helpful to bring a pint version of the specific section code in question.
3. Continue moving up the chain of command within an organization and inform them of the law which you believe entitles you to a cash refund.
4. If your request is still not granted, contact your state's attorney general and file a complaint.

Company's Have Been Sued

In 2009, Starbucks settled a lawsuit in California for not refunding gift cards with a balance under $10. In the end, Starbucks paid $225,000 to settle. Keep in mind, it's entirely possible the company may be unaware of the gift card laws requiring a cash refund and you'll be doing them a favor by bringing it to their attention.

Blockbuster Files For Chapter 11 Bankruptcy Protection

ScripSmart caught wind of Blockbuster's bankruptcy intentions a few weeks ago and today it's official: Blockbuster will filed for Chapter 11 bankruptcy protection and plans to reorganize it's finances.

Blockbuster Gift Cards

According to the company's press release:

"Blockbuster intends to continue honoring its Rewards program, valid coupons, gift cards and other customer programs."

That's good news for gift cards holders and while it's possible Blockbuster will emerge as a better company with a  more competitive offering, we consider this a red flag. The Blockbuster Gift Card is a risky purchase this holiday season and if you own a Blockbuster Gift Card, use it soon.

Stores Will Close

At this point, Blockbuster has not given any numbers on store closures.  However, they do state:

"As part of the recapitalization process, the Company will evaluate its U.S. store portfolio with a view towards enhancing the overall profitability of its store operations. Currently, all 3,000 of the Company's stores in the U.S. will remain open."

You can bet the company will close the doors on many of it's worst performing locations and gift cards will become less convenient to redeem.

We've Seen It Before

Earlier this year, Blockbusters next largest competitor for in-store movie rentals, Movie Gallery, Inc. (Hollywood Video / Game Crazy), closed it's doors for good. As a result, all gift cards issued by the company are now worthless.

ScripSmart Can Help

Remember, a ScripSmart Account give you a heads up if a gift card you own is at risk of being worthless. Just sign up, register your gift cards and we'll take car of the rest with the ScripSmart Alert system.

A Great Gift Card: The Container Store

ScripSmart is dedicated to helping consumers find the best gift cards. Today we're going to highlight one which is among the most consumer friendly we've seen thus far.

There are a lot of things we look for when calculating a Gift Card Score and we're happy to say The Container Store has hit most of the marks we set when evaluating an excellent program.

All the basics are covered and researching this card was rather easy thanks to the full disclosure provided by the containerstore.com. Here are some of the highlights:

• Gift Card Terms, FAQ and balance inquiry options are all online (and easy to find)
• They will replace lost or stolen gift cards with the original receipt
• It's redeemable at all locations
• It's redeemable both in-store and online
• Free shipping
• No purchase Fee
• No Fees, No Expiration

Here's what makes The Container Store's gift card stand out:

• It's refundable anytime with the gift card and original receipt
• You can combine multiple cards onto one, free of charge
• The FAQ states where refunds will be credited if merchandise is returned

One of the points we didn't like so much was listed in the Gift Card Terms:

"The Gift Card may not be sold or bartered."

However, given that it can be refunded at anytime makes that stipulation just a bit more bearable.

Gift Card Giving And Receipts

Just remember, when giving a gift card, always give your recipient the purchase receipt with the gift card. While your recipient will be able to select anything in the store when redeeming a gift card, it's quite possible they may need it to obtain a replacement or even want to receive a refund for the full value, as is allowable by The Container Store Gift Card.

For another great gift card which is refundable at anytime, see this post.

Claim Jumper Bankrupcty: The Gift Card Impact

11/05/2010 UPDATE - Landry’s Restaurants, Inc. has won out in the bidding process and acquired Claim Jumper Restaurants, LLC for 76.6 million. We're removing the Claim Jumper Gift Card from our list of gift cards to avoid.

Claim Jumper, a restaurant chain operating 45 locations in the western United States, has voluntarily filed for Chapter 11 bankruptcy protection. The company intends to emerge from bankruptcy in about two months. After which, Claim Jumper will be debt free and ready to sell all of it's assets to an affiliate of Canyon Capital, a Los Angeles based asset manager.

Gift Cards Will Still Be Accepted And Sold

According to Claim Jumper CEO Mark Augarten, "It will be business as usual while we complete the sale transaction."

In fact, Claim Jumper is asking the Bankruptcy Court for permission to honor gift cards. That's a good thing for Claim Jumper Gift Card holders and the request will likely be granted.

ScripSmart Consumer Tip

Regardless of Claim Jumper's intentions to continue business as usual, we recommend those who own a Claim Jumper Gift Card to redeem it soon. Also, if you're considering the Claim Jumper Gift Card as a gift, hold off until the dust settles. It's better to be safe than sorry.

Up In The Air

Claim Jumper has entered into a Asset Purchase Agreement with Private Capital Partners, an affiliate of Canyon Capital Advisors LLC. However, the company must entertain higher bids for it's assets from other qualified bidders. Also, while the chances are slim, it's possible gift cards will no longer be accepted per court order.

Website Dedicated To Restructuring

Claim Jumper has setup a dedicated website for disseminating information covering the companies bankruptcy and subsequent sale. It's great to see a company make an effort to communicate the details of a bankruptcy filing. It's something we'd like to see become the standard. In fact, the third bullet on their list of common questions for consumers covers gift cards and their intentions to continue reddeming.

Wells Fargo Eliminates Gift Card Expiration and Monthly Fees

There's more evidence, the CARD Act of 2009 is having a positive impact on the terms of bank-issued gift cards. Wells Fargo has announced both the Wells Fargo Visa Gift Card and the Wachovia Visa Gift Card no longer have monthly fees and the funds never expire.

While they could impose fees and expiration dates, it's good to see Wells Fargo join a growing group of companies who have eliminated expiration dates and monthly fees for gift cards. The purchase fee of $3.95 is also on the lower side of the spectrum for a bank-issued gift card.

Remember ScripSmart can help you find the best Visa gift cards. Just check ScripSmart's Gift Card Score® for any gift card before making the purchase.

One Negative Side Effect

It appears the CARD Act of 2009 continues to have one negative impact for consumers: bank-issued gift cards which were once redeemable outside the U.S. are now only redeemable within the U.S.; It's a worthwhile trade off and we believe a direct result of the 'only one fee per month' requirement of the CARD Act of 2009.

Another Option For International Use

If you're looking for a product which is accepted like a credit card outside the U.S., consider a reloadable pre-paid visa card like the Walmart MoneyCard. There will be more fees; however, it's flexibility may make those fees worthwhile.

Remember only bank-issued gift cards are covered by the new federal rules. Here are some signs which may indicate your buying a product which is not governed by the new federal gift card rules:

• It's not marked as a 'gift card'
• It's reloadable
• It requires a social security number when first purchasing
• It's intended as a substitue for a checking account

One last thing to note: you must be a Wells Fargo or Wachovia customer to purchase either gift card.

When A Business Can Choose Not To Accept Your Gift Card

Something interesting in the world of gift cards is happening in Danville, California. A restaurant, Patrick David's, is choosing not to accept gift cards. While this might seem outrageous, it's a perfectly legal albeit a questionable decision.

We've Seen It Before: Bankruptcy And Worthless Gift Cards

The original owners of Patrick David's filed for bankruptcy protection which required them to liquidate all assets of the company in order to pay its creditors. During the bankruptcy proceedings another entity, Pavlova Passion Inc., purchased the operating rights to the business. In other words, they purchased the ability to keep running the business with the same name, logo, website and location.

The proceeds generated from the sale of company assets are used to pay off creditors. It makes perfect sense and helps generate cash to pay the company's debt.

Unfortunately, gift card holders are considered unsecured creditors and as a result, they stand towards the back of a long line of people looking for money. Naturally, there is never enough money to pay everyone; otherwise, the company would have no need for bankruptcy protection.

One can envision a food line with too many people and not enough food. Gift card holders are among the last to be served and ultimately they're turned away when the food is gone.

Choosing Not To Accept Gift Cards

The new company is not required to purchase other assets (namely debt) and therefore not legally required to redeem gift cards (a form of debt). While the new owner of a previously bankrupt brand may find it worthwhile to honor gift cards and keep the existing customer base happy, it's a business decision which can go either way.

According the to article, Patrick David's new owners have decided not to accept gift cards because "the previous owner, chef Patrick Schoolcraft and his wife, Laura, would give the gift cards to other business owners in exchange for services such as getting their car washed or their hair cut." Furthermore, it's unclear as to how many and which gift cards were bartered vs purchased. An accountant for Pavlova Passion Inc. believes it could be as much as $250,000.

Playing Both Sides

Purchasing the brand name, location and keeping the staff of a business is sure to lead to customer confusion. Given the circumstances, I can sympathize with the decision to no longer accept gift cards. However, there is one fact which is sure to irk consumers: Chef Patrick Schoolcraft is still employed by the business. Yes, the same person who according to the new operators has made it unfeasible to redeem gift cards is still drawing a paycheck.

The new operators of Patrick David's are practicing some poor judgement: They've decided to keep virtually everything the previous business did intact, only burn gift card holders while continuing to pay the person they claim is responsible for their inability to accept gift cards. We've just added the Patrick David's Gift Card to the Gift Card Graveyard.

ScripSmart's 400th Gift Card Review

We're excited to announce our 400th gift card review: the Gymboree Gift Card. We're also happy to report the review resulted in a great Gift Card Score®: 86 out of 100.

ScripSmart is already the most comprehensive gift card resource for consumers and we're just getting started. We're also the only service dedicated to helping consumers evaluate the quality of a gift card programs. We believe finding the best gift cards should be easy and Gift Card Score makes it possible.

We Research And Publish Reviews, You Buy Smart And Save Time

Each gift card review and the resulting Gift Card Score is just one of the ways ScripSmart makes your life easier.

We spend a lot of time monitoring the gift card industry, digging through websites, terms, FAQs and communicating with retailers in order to find the answers necessary for an accurate gift card review. If you're looking for the best gift cards for kids or the best Christmas gift cards, ScripSmart can help guide you towards making a smart purchase.

A great gift card is more than just no fees and no expiration. Check the Gift Card Score before making your next gift card purchase. If we don't have a gift card already reviewed, send us a note and we'll be sure to add your favorite restaurants, retailers and service providers.

Blockbuster Bankruptcy Looms: A Risky Gift Card

UPDATE: Blockbuster annouced it will file Chapter 11 Bankruptcy on September 23, 2010.

 

Blockbuster Video's business has been in decline for several years and according to the Los Angeles Times, the company will file for bankruptcy protection this month.

It's likely Blockbuster will file for Chapter 11 bankruptcy protection and continue to operate while it reorganizes company finances. This means a few things for consumers and gift cards:

• Gift cards will still be sold and accepted by Blockbuster
• More blockbuster locations will close making gift cards less convenient to redeem
• The Blockbuster Gift Card continues to be a risky purchase

As a result of the company's declining financial condition, ScripSmart already considered the Blockbuster Gift Card to be a gift card worth avoiding. In fact, a warning is placed on any gift card we believe to be a risky purchase. It's just another good reason to check the Gift Card Score® before making your next gift card purchase.

The current message reads:

Not Out For The Count

Blockbuster's competitor, Movie Gallery/Hollywood Video, filed for chapter 11 bankruptcy several times before closing doors for good. The signs were there and now the Hollywood Video Gift Cards are worthless.

Blockbuster will be around for the foreseeable future. However, many consumers tend to hold on to gift cards for an extended period of time and if Blockbuster closes doors for good, gift card holders will be left with nothing.

The article also mentions Blockbuster closed nearly 1,000 stores in 2009 is looking to close between 500-800 as a result of this bankruptcy filing. It's an important step in reducing debt, but results in a gift card which may not be nearly as convenient to redeem.

ScripSmart Can Help

We recommend using gift cards as soon as you receive them. For those who tend not to redeem gift cards right away, a ScripSmart Account can help give you a push and provide some extra protection from being stuck with a worthless gift card.

ScripSmart monitors the gift card landscape and if we hear of a company filing for bankruptcy or closing doors, we'll send you a heads-up via email. ScripSmart's alert system is just one of several benefits of a ScripSmart Account. Best of all, ScripSmart Accounts are easy, free and helpful; simply sign up and add the cards you own to your account. It's easy to reap the benefits of ScripSmart.

 

Airline Gift Cards Not Governed By State Gift Card Law

Yes, you read correctly. According to a recent ruling, the Court of Appeal has agreed with Los Angeles Superior Court Judge Anthony Mohr's stance:

The State of California cannot govern the rules of gift cards or gift certificates issued by an airline because the Airline Deregulation Act takes precedence over California Gift Card Laws.

The Airline Deregulation Act reads:

"...States may not enact or enforce a law, regulation, or other provision  having the force and effect of law related to a price, route, or service  of an air carrier..."

We don't believe this will have a big impact on consumers. According to our research, airline gift cards do not impose expiration dates. However, if you're given a gift card for free (by the airline), buy one below cost, or receive a voucher for taking a later flight,http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNENgEIocwNLJzqb2HRKoyYZFPci7g&url=http://www.journalpioneer.com/News/Local/2010-08-31/article-1714518/Gift-card-rules-now-in-effect/1 the terms may be different. It's always a good idea to know the terms or any company scrip you hold.

Keep in mind, ScripSmart Accounts can help you avoid loosing the value of a gift card or voucher carrying an expiration date. Simply register it with ScripSmart, add the expiration date and we'll send you a couple of notes via email before the card expires reminding you to use it or loose it.

ScripSmart Accounts are an easy way to get a little help in protecting the value of your gift cards and just one of several alerts you can enable on your ScripSmart Account.

Sign up for a free ScripSmart account here

Texas Already Excludes Airline Gift Cards

Interestingly, Texas Gift Card Law specifically excludes airline gift cards. From our research, they are the only ones to specifically exlcude such gift cards. It's likely the law makers in Texas are familiar with the Airline Deregulation Act. After all, this is not the first time it's blocked a state from enacting a law to govern an airline's business practices. Furthermore, several airlines are based in Texas.

Federal Gift Card Laws Apply

While a state may not enact legislation to govern airline gift cards, the federal government can and new federal gift card regulations likely apply to airlines. However, if you're given a gift card as a reward or part of a promotion, the new federal laws do not apply. In other words, if you don't pay full price, there is a chance your gift card will expire in less than 5 years.