Gift Card Blog - ScripSmart

Gift Card and eGift Card Are Not Always Equal

When most of us think about a gift card, we think about the traditional plastic gift cards. However, many merchant also offer an alternative form: the electronic gift card aka eGift Card or Online Gift Certificate. It's worth noting there are some very clear and some not so clear benefits to these different forms of gift card.

One clear benefit to each form of gift card:

Plastic Gift Cards - Most consumers like to hand over a tangible gift when gift giving. In which case, plastic gift cards are great. Furthermore, they often have wonderful designs which could be appropriate fit the occasion. For example, if you're in the need of a Mother's Day Gift Card, a merchant might have one with pretty flowers and the words "Best Mom" already printed on the card.

eGift Cards - Typically delivered by email, the big benefit here is getting a gift delivered fast and free. One could literally wait until the last day and send an Amazon.com eGift Card across the country and have the gift delivered on-time. Keep in mind, one could also print out an eGift Card and hand it over to the recipient, but it's not quite the same as a plastic gift card.

Separate Product Reviews

ScripSmart reviews these two gift card forms as separate products. We do this for two main reasons:

1) There are some important differences in how our Gift Card Score algorithm scores each form of gift card. For example, if a plastic gift card does not have a scratch off security code, it's Gift Card Score is lowered. On the other hand, lowering the score for an eGift card which does not have a scratch off code just doesn't make sense and no email gift card will offer a scratch off code, it's just not possible.

2) The terms of an eGift Card may be different than those of a traditional plastic gift card. For example, according to the FAQ, the Jos. A. Bank Gift Card is not replaceable if lost or stolen. However, Jos. A. Bank eGift Card is replaceable if lost or stolen.

Anytime there are differences in a gift card program, it will be reflected in it's Gift Card Score. Naturally, the Jos. A. Bank's Plastic Gift Card scores a bit lower than it's electronic counterpart. In fact, below are the current gift card reviews for both products.

The Plastic Version:

The Electronic Version:

ScripSmart Helps Simplify Decisions

This example illustrates how ScripSmart helps simplify the decision making process when buying a gift card. By simplifying the terms, one can decide if it's worth getting the plastic vs giving a gift card which is replaceable if lost or stolen. A score of 78 when compared to a score of 84 should give a good indication it's worthwhile to take a deeper look at the specifics of each gift card.

Top 10 Mother's Day Gift Cards

Mother's Day is almost here and I thought it would be fun to run down ScripSmart's top 10 Mother's Day Gift Cards. These results are ordered by Gift Card Score.

1. The Container Store Gift Card - 99

One of the top scoring gift cards on ScripSmart, this is a great option for the Mom who loves to stay organized.

2. Kmart eGift Card - 97

Another high scoring gift card on ScripSmart and a great option if you Mom loves a deal. Kmart is known for offering great value and has several locations nationwide. It's also delivered via email so you can send it last minute.

3. Target Gift Card - 95

If your Mom more of a Target gal, then be sure to take advantage of this all time favorite. Target is known for great style and value, their gift card is no different.

4. Bed Bath & Beyond Gift Card - 94

For the Mom who likes a comfy home. The folks at Bed Bath & Beyond have put together a solid gift card program sure to please her.

5. Williams-Sonoma Gift Card - 91

If Mom loves to cook then you can't go wrong with Williams-Sonoma. Treat her to something special at this great specialty retailer.

6. Cinemark Gift Card - 91

For the movie Mom, take a look at Cinemark's offering. the good news is it's also redeemable at Century Theaters, CinéArts and Tinseltown locations.

7. Marriott Gift Card - 90

If Mom needs a getaway, this is the gift card for you. It's redeemable world wide at any Marriott Hotels & Resorts, Renaissance Hotels, Courtyard, Residence Inn, Fairfield Inn, TownePlace Suites, SpringHill Suites and Marriott Vacation Club International.

8. Boscov's Gift Card - 88

If Mom is into fashion, then Boscov's is sure to be a hit. This department store gift card is redeemable both online and in-store.

9. Fandango eGift Card - 87

Another great option if Mom loves the movies. Just make sure she has internet access, it's required for redemption.

10. The Limited Gift Card - 87

Another great option if Mom loves fashion.

There's More

ScipSmart's Gift Card Score is designed to help you find consumer freindly gift cards. If you're looking for more ideas, here the full sortable list of great Mother's Day gift cards!

What ScripSmart's Gift Card Score Isn't

This blog post was inspired by a conversation with the CEO of a company who sells gift cards.

I believe Gift Card Score® is an accurate representation of the consumer friendliness of any gift card; it's also extremely easy for most consumers to understand. However, there are several factors which are not included in a Gift Card Score. It's arguable such factors are important in determining the consumer friendliness of a gift card program, but not included in Gift Card Score.

Here are a several aspects related to a gift card program which are not currently factors on the Gift Card Score Algorithm:

Customer Satisfaction

Gift Card Score does not take into account the quality of a company's customer service team. I recognize this is an important factor in the consumer friendliness of a gift card program; however, it's a subjective matter and one person's experience may be much different than another person's. Furthermore, it's rather difficult to quantify Company A's service level when compared to Company B without the input of many customers.

That written, it's likely at some point in the future Gift Card Scores will be impacted by consumer sentiment. In fact, in December 2010, we began offering consumers the ability to rate gift cards based on a scale of 1-5 stars and while this isn't currently a factor, I see this as becoming an important attribute of a Gift Card Score albeit just a piece of the puzzle.

Number Of Locations

Another aspect we don't take into account is the number of locations which a gift card may be redeemed. For example, the corner grocery store with a single location can score just as high as the largest super market with hundreds of locations. It's arguable that the more locations where a consumer can redeem a gift card, the more consumer friendly the program. However, it's also possible the corner grocery store is more convenient because it's right next door to the gift cardholder.

Breadth Product Offering

Similar to the number of locations available for redemption, we also don't take into account the breadth of a company's product offering. Again, this is also a subjective matter and what one person sees as a great gift card, another may have no use. For example, I love the Amazon.com Gift Card because there are so many things I could buy and it's just a matter of time before I redeem the gift card. On the other hand, a person may prefer an iTunes eGift Card where only music, apps, books and movies may be purchased. Again, it's a subjective matter and therefore we leave it out of the scoring algorithm.

The Hard Work

Gift Card Score also doesn't take into account all the hard work a team puts into the product offering. I understand a team might give blood, sweat and tears, but this too is very difficult to quantify and is a subjective matter. While I believe hard work is imperative in creating an excellent product, it's also possible to put in a lot of hard work which results in a product which is less consumer friendly, even if it's a result of external circumstances. E.g. gift cards are not accepted at all locations because some locations use a different system or currency.

It's Never Personal

Gift Card Score was not created to give a particular company a bad reputation or to suggest the company is not consumer friendly. It was created to help consumer easily identify and support the best gift card programs. Of course a low Gift Card Score indicates the gift card manager could make some improvements to the program which we see as an opportunity to become more consumer friendly. Even so, gift cards with a low Gift Card Score (0-59) are labeled "Buyer Beware" not "Do Not Purchase" because we aim to warn consumers tey may want to look at the terms closer before making a purchase.

Sometimes Less Is More

The point is: things left out of Gift Card Score because we think it actually makes Gift Card Score better. Ultimately, the scoring algorithm is subjective form the factors included to the weighting of each factor.

For example, a $1 post-sale fees will lower a Gift Card Score more than a $1 shipping fee because we believe the shipping fee is an upfront cost and therefore the decision maker will know they are being charge a fee before making the purchase. On the other hand, a post sale fee is something that we see as a hidden fee and it will likely recur until the balance of the card is $0. Furthermore, inactivity fees are something which have give gift cards a bad wrap and it certainly feels like a company is taking money out of the consumers pocket when deducting such fees.

At the end of the day, all gift cards are scored with the same algorithm. While it may not be easy to obtain a high Gift Card Score, it's certainly possible.

We're Always Open To Feedback

I love hearing feedback about ScripSmart; we're open to listening to what others have to say about Gift Card Score. In the end, it's important for each Gift Card Review on ScripSmart to be fair, accurate and easy to understand. If you have any feedback or suggestions, just send us a note and share your thoughts. With your help ScripSmart can be even better!

What "Same As Cash" Really Means For Gift Cards

When reading the Terms for gift card reviews, it's common to see a portion which states "same as cash". However, this shouldn't be taken at face value because it usually means something vary different.

For example, the Neiman Marcus Gift Card has Terms which state:

"NM Gift Cards may be treated the same as cash."

I think that sounds great; however, this couldn't be further from the truth because the following four bullets are:

NM Gift Cards are not redeemable for cash, nor can they be returned for a cash refund.

NM Gift Card actual cash value is 1/10 of one cent.

NM Gift Cards cannot be purchased with an NM Virtual Gift Card, nor can they be used to purchase an NM Virtual Gift Card.

NM Gift Cards cannot be applied as payment on Neiman Marcus Credit Card accounts.

When I see "same as cash" I immediately think the gift card will not be replaced if lost, stolen or even damaged. The final bullet in the Terms of the Neiman Marcus Gift Card confirms my assumption and reads:

Neiman Marcus is not responsible for lost or stolen NM Gift Cards.

Here are a few things one should be able to do if a gift card were truly treated as the "same as cash" by the merchant:

• Exchange the gift card for cash.
• Or at least receive cash back for the remaining balance of the gift card after a purchase.
• Pay down a charge account with the the gift card.
• Use it for gratuity, alcohol, lottery tickets or any service which cash is accepted as a payment.

Mother's Day Gift Card Advice

Merchant's using such wording (or not fully disclosing limitations) can be confusing to consumers. In fact, simplifying the terms of a gift card is one of the reasons Gift Card Score was created. We wanted a great way to help consumers find the best gift cards and understand the restrictions which might apply to their purchase.

Naturally, gift cards which are not replaceable will have their Gift Card Score lowered by our algorithm. So, if you're shopping for a Monther's Day Gift Card be sure to check the Gift Card Score before making a purchase decision; it will save you time and help you find a great gift or at the very least understand the terms of the product you purchase. Below is an example of what a gift card review currently looks like on ScripSmart; the second bullet down let's you know the gift card is not replaceable.

Every State Should Specify If Gift Cards Are Ever Considered Unclaimed Property

ScripSmart offers handy summaries of each state's gift card laws. We also grade those laws from A-F making it easy to compare the consumer friendliness. State law grades are generated by an algorithm and there are several factors included; one of those factors is whether on not a state has specified how gift cards are handled under it's unclaimed property laws.

Clarification Is Needed And Only Fair

I recommend lawmakers touching this area aim to specifically state whether or not gift cards are considered unclaimed property because it's only fair to consumers, gift card issuers and the state treasurer who manages unclaimed property.

I'd also urge them not to consider gift cards are unclaimed property because the nature of the property is one of uncertain ownership. In other words, gift cards are purchased and given to another person and that person may live in a different state which will impact whether or not a gift card should be turned over to the state. Keep in mind, it's the gift card issuer's responsibility to report unclaimed property and hand the balance over to the state.

ScripSmart's Error

It was recently brought to my attention there was an error in ScripSmart's summary Oregon Gift Card Law. In short, we were referencing a SB 460 which stated gift cards escheat (balance must be handed over) to the state after 3 years of inactivity. It turns out the bill had not actually passed and I wasn't thrilled about the error.

A big thanks to Keith Dubanevich, who currently serves as Chief of Staff and Special Counsel for the Office of the Attorney General in Oregon. He went above and beyond by taking the time to send me a note to let me know ScripSmart was inaccurate. If you ever see an error on ScripSmart, let us know and we'll quickly have it corrected.

Oregon's Obscurity

After researching the laws a bit more, it became apparent that gift cards might be considered unclaimed property under Section 98.342 of Oregon's Chapter 98 — Lost, Unclaimed or Abandoned Property; Vehicle Towing. Section 98.342's headline is "Miscellaneous personal property held for another person." In other words, it's a catch all for any other other property. It could definitely be argued gift cards fall under this section and should be turned over to the state as unclaimed property.

However, it could also be argued that the failure to pass SB 460 implied state law makers do not want to consider gift cards as unclaimed property. Yes, it's murky water: but why would there be a bill to specifically consider gift cards as unclaimed property if they were already unclaimed property. Furthermore, why did the motion fail to pass if gift cards are already considered unclaimed property.

In the end, Oregon went from a B grade to a C grade because the do not specify whether or not gift card escheat to the state.

For The Record

Oregon is not the only state who is unclear on this matter and ScripSmart's algorithm looks favorably on those state's which specifically excluded gift card from unclaimed property laws.

Mother's Day Gift Card Ideas

Mother's Day is coming on May 8, 2011, just three short weeks away. Gift cards have become a popular option for Mom; it's a great was to add a little something special to a greeting card. ScripSmart categorizes several occasion and can give you some great Mother's Day gift card ideas. Remember, Gift Card Score helps you easily determine the consumer friendliness of a gift card program, but still you need to find a gift card she'll enjoy. Below are a few suggestions for giving Mom a gift card she'll love.

Go Luxurious - The Day Spa

If you think treating Mom to a massage is a great way to reward her for all the hard work then a gift card to a day spa can be a perfect option. However, gift cards to day spa's can be among the most risky because these businesses are often locally owned and sell services considered to be a luxury by most consumers; as a result, they can go out of business in a flash leaving Mom with nowhere to redeem her gift.

A great way to reduce the risk of your day spa gift card ending up worthless is the SpaFinder eGift Card. It's redeemable at over thousands of unaffiliated day spas across the nation. If her favorite day spa goes out of business, you don't need to worry because there will be plenty of other locations still in business and willing to accept the SpaFinder eGift Card for services.

Recurring Gifts - Magazines

A gift which continues to give is always a great option and what better way to let Mom know you card month after month than giving her a subscription to a great magazine? If you like this option, the Magazines.com Gift Card will allow her to choose from just about any magazine under the sun. Keep in mind, this one is redeemable only online so she's going to need internet access.

The Restaurant IOU

On of the most popular things to do on Mother's Day is taking her out for a nice meal. As a result, it can be one of the more difficult days to secure a reservation and you may end up waiting a long time for a table.

If you'd like to let Mom know there is a nice dinner in her near future, consider supplementing a greeting card with a gift card to her favorite restaurant and write a date for redeeming the card. If you play it smart, you can get a gift card which is redeemable at several different locations. For example, the Maggiano's eGift Card is also redeemable at Chili’s Grill & Bar, Romano’s Macaroni Grill, or On The Border Mexican Grill.

In Doubt? - Go Practical

If you're not keen on any of the ideas above, consider playing it safe with a gift card to superstore. The Kmart Gift Card might not carry the pazazz of a gift card to a day spa or offer the longevity of a gift card for a magazine subscription, but you can be sure Mom will be able to find a use for such a practical gift. Just be sure to buy the git card to the store she frequents so it will be easy for her to redeem.

What are some of your favorite Mother's Day Gift Cards?

Blockbuster Gift Cards Worthless - Dish Network Can Bring Them Back

04/06/11 UPDATE: Dish Network's offer for Blockbuster was approved by the U.S. Bankruptcy Judge Burton Lifland.

Today is the first day you can no longer use the Blockbuster Gift Card for merchandise or services. We've been sending out Gift Card Alerts to ScripSmart Users who had registered the Blockbuster Gift Card in their account for months. (The service is free, sign up here.)

Yesterday it was announced, DISH Network Corp. had reached an agreement to buy Blockbuster for $320 million. One of the stipulations of the sale: gift cards did not have to be honored by the new owner (regardless of the purchaser).

As such, Blockbuster gave a two week notice to consumers and POOF!, Blockbuster Gift Cards are now worthless. The company also stopped selling gift cards when they learned Blockbuster Gift Cards would no longer be accepted after April 7th, 2010.

We've moved the Blockbuster Gift Card to the Gift Card Graveyard where it will rest with the other worthless gift cards.

Rising From The Grave

Dish Network has the option to start accepting Blockbuster Gift Cards again. Yesterday, we asked Dish Network's Francie Bauer if there were any plans to accept the Blockbuster Gift Card and she told said, "It's too early to tell, as the deal isn't finalized yet. Stay tuned."

Here are several of the things Dish Network will consider when deciding whether or not to accept outstanding Blockbuster Gift Cards:

1. Customer loyalty: Consumers don't like getting burned, they don't even like hearing of others getting burned. Discontinuing a gift card program while keeping the doors open is sure to leave a bad taste in peoples mouths. The fact is, consumers don't really care if there's a new owner; if the doors are open, the staff is the same, the brand is intact and a membership is still good, gift cards should be accepted.
2. Future Business Model: Clearly Blockbuster's current business model is not working. Dish Network certainly has plans for the future of Blockbuster. The question remains: is Dish Network simply interested in converting the existing blockbuster customer base to Dish Network customers with in-store merchandising and promotions or do they want to revive the Blockbuster brand and make it a part of the Dish Network offering.
3. The gift card marketing opportunity: Gift cards offer a great way to market and sell products to consumers; Dish Network will need to determine if this is a marketing channel they want to continue promoting.
4. Being the good guy: If Dish Network chooses to accept gift cards, they'll receive goodwill from the public and appear as the company who saved Blockbuster and it's gift cardholders, not the company who capitalized on Blockbuster and gift cardholders.
5. Time: Dish Network's offer is pending approval. There is  hearing tomorrow and if there are snags in the process and more time goes by, it's less likely gift cards will be accepted.
6. The value of outstanding gift cards: there's no doubt the totally value of unredeemed gift cards will be a known figure. Dish Network will balance the value of all the points above with the cost of accepting outstanding gift cards.

All things considered, there is a reasonable chance Dish Network will choose to improve the image of Blockbuster by accepting gift cards. However, as of today we've no choice but to consider it worthless. The fact remains: if you own a Blockbuster Gift Card, you simply can't redeem it for merchandise or services anywhere.

Let's hope Dish Network does the right thing and brings the Blockbuster Gift Card back to life.

ScripSmart Accounts

Remember, ScripSmart provides a free alert system for you gift cards. Just register the cards you own and we'll send you a note if we hear the gift card might soon become worthless. Sign up here.

Sbarro Bankruptcy: Gift Cards Still Accepted

Fast-food Italian restaurant operator Sbarro filed for Chapter 13 bankruptcy protection today. According to the company's website, the Sbarro Gift Card will still be accepted during the reorganization. In fact, the company says it will be business as usual. Regardless of Sbarro's intentions, if you own a Sbarro Gift Card, go out and redeem it today; there is just no reason to take the chance of getting stuck with a worthless gift card.

Chapter 13: Uncertain Ground

While the company plans to remain in business and continue business as usual, it would not be surprising to see under-performing locations close in order to improve the company's bottom line.

Furthermore, there's always a chance the reorganization plans will fall short of expectations. For Example, Blockbuster filed for Chapter 13 bankruptcy protection in late 2010 and they recently announced the Blockbuster gift card will no longer be accepted after April 6, 2011. Blockbuster changed it's stance on gift card acceptance because the company has been forced to sell it assets and the new owner may choose not accept the Blockbuster Gift Cards issued before the purchase.

ScripSmart Accounts: Bankruptcy Alerts

In the last six months, we've seen several companies file for bankruptcy protection: Borders, Blockbuster, Harry & David, Anchor Blue and now Sbarro. ScripSmart can help you avoid getting stuck with a worthless gift card.

We offer ScripSmart Alerts and one of the alerts is a Bankruptcy Alert. In short, when we catch wind of a company entering into bankruptcy or even believe a company is on on unstable financial ground, we'll send out an alert via email to those who have registered the gift card in their ScripSmart Account. The service is free and you can create and account here. It's just one of the things we're doing to help consumers get the most out of their gift cards.

American Apparel Bankruptcy Looms: Gift Card Impact

Rumors of an American Apparel  bankruptcy are nothing new; however, on March 31, 2011 the company itself stated they may need to file for bankruptcy protection and could be forced to liquidate assets if they are unable to find proper financing to continue operations. The American Apparel Gift Card has been on ScripSmart's list of gift cards to avoid for quite some time; if you own this gift card use it today and avoid getting stuck with a worthless gift card.

Warning Submitted To The SEC

The warning was listed under Part 1A 'Risk Factors' of the company's annual 10-K filing to the Security and Exchange Commission. In short, American Apparel is loosing money and may not be able to obtain new financing. As a result, filing for Chapter 13 or Chapter 7 bankruptcy protection may be in the company's best interest. Unfortunately, bankruptcy is not usually in the best interest of those who own gift cards. In short, it looks unlikely there will be a dramatic turnaround, especially considering the extraordinary challenges the company faces. It's very likely retail locations will close and this warning should not be taken lightly if you own an American Apparel Gift Card. Assuming a company files for bankruptcy protection, here are two of the most common outcomes:

1. Chapter 13: More Time For Gift Cardholders

If the company finds the financing to continue it's operations, it may file for Chapter 13 bankruptcy protection, reduce debt and get back to profitability. This means gift cardholders will likely be given more time to redeem gift cards. However, as in the case of Blockbuster, a Chapter 13 filing can go sour and the company may be forced to sell it's assets. Best case scenario: the company is able to reach an arrangement with a creditors, turn the ship around and remain in business for years to come.

2. Chapter 7: The Death Axe For Gift Cards

If the company is unable to obtain proper financing, it may file Chapter 7 bankruptcy and begin the process of liquidating it's assets in order to pay of creditors. Often times, the brand name, domain name and customer lists are sold. In fact, Blockbuster's assets are up for sale and as a result, the company has issued a notice telling consumers the Blockbuster gift card will no longer be accepted after April 6, 2011. However, there is an unlikely possibility the new owner will decide to accept gift cards issued by the previous company. When assets are sold there is never enough to pay everyone off and gift cardholders are low on the priority list and often time frames for redeeming gift cards are rather short.

ScripSmart Bankruptcy Alerts

You can bet we'll be sending out Bankruptcy Alerts to those who have registered ownership of the American Apparel Gift Card in their ScripSmart account. The ScripSmart Alert service is free and it's just one of the things we're is doing to help consumers get the most out of their gift cards. If you're interested, sign up and register yor gift cards here.