Gift Card Blog - ScripSmart

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.

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.

Chevys, El Torito and Acapulco Restaurants File Bankruptcy Protection

If you own a El Torito Gift Card, Chevy's Gift Card or Acapulco Gift Card, go out there and redeem it soon. Yesterday, Real Mex Restaurants Inc. the parent company of the above restaurant chains filed for Chapter 11 Bankruptcy protection.

The company's operations are heavily based in California, a state hit hard by unemployment and the housing market's downward spiral. Unfortunately, there was no mention of gift cards in the company's press release. The Real Mex is still selling it's gift cards online and I've contacted them to find out if if gift cards will still be accepted during the reorganization. Regardless, go out there and redeem to ensure you don't end up with a worthless piece of plastic.

Typically, when a restaurant files for Chapter 11 bankruptcy protection, gift cards are still accepted and sold. However, it's likely several locations will close in order to improve the company's finances. In other words, the location nearest could very well close it's doors which will make redeeming that gift card rather inconvenient.

A Chapter 11 filing indicates the company intends to stay in business; however, we've just seen both Chapter 11 filings from Borders and Blockbuster result worthless gift cards. If you're in the market for a gift card, be sure to check it's Gift Card Score. The financial condition is an important part of every Gift Card Score. We also keep a list of gift cards to avoid which is designed to help you avoid buying a gift card which might become worthless.

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 your account now.

Why Keeping Your Gift Card In A Mobile App Is A Smart Idea

A couple of weeks ago I wrote about Jonathan's Starbucks Gift Card. In short, it was a gift card people were sharing; strangers would both add and reduce value in a pay-it-forward social experiment. The experiment brought up several questions, most about human nature; however, for me, it raised the question: are mobile gift card apps safe for consumers?

The Future Of Gift Cards Is Mobile

There is no doubt the future of mobile payments is bright and gift cards will be a big part of the action. The Starbucks Gift Card App has been tremendously successful with consumers and for good reason: they are easy to use, automatically keep the balance and best of all you'll always have the gift card in your pocket. However, the Jonathan's Card Experiment demonstrated one important vulnerability of mobile gift card apps which create bar codes to be scanned at the checkout counter.

Easy To Duplicate, Hard To Identify

The Jonathan's Card experiment worked because people could use an image of the Starbucks Mobile App which included the bar code of the gift card and use it for payment. This image is displayed on the right and if displayed on an iPhone, it looks just like the real application. This makes it difficult for the checkout clerk to determine what they are scanning is a duplicate or the original.

Creating this is image is very easy, just take a screen shot of the iPhone with the original mobile app. It's possible a smart phone could end up in the wrong hands, the card duplicated and the owner might never know.

Less, Not More Risk

It begs the question: if you add your gift card to a mobile app  which produces a bar code image of the gift card, are you increasing the risk of losing the value of your gift card to fraudulent use?

In short, the answer is no. After all, a person must still access the application on your mobile phone, take the image and send out the image to others. I don't see this as any more of a possibility than having a wallet lost or stolen. Furthermore, the Starbucks Mobile App has the option of being locked with a password and most smart phones can also be locked with a password. I can't say the same for a wallet.

If you own a gift card and there is a mobile app for it, I think it's a smart decision to use it. Just be sure to dispose of or hold the original plastic gift card in a safe place.

The Mobile Apps Version Of Scratch Off Security

When scoring gift cards, our algorithm likes to see a scratch off security code on the back of plastic gift cards. Its' a great way to prevent fraud. Perhaps a Mobile Gift Card App version of such fraud prevention would be an animated portion where the gift card bar code is displayed on the mobile phone. This would allow the checkout clerk another tool in determining if the bar code being show is authentic.

What do you think? Do you use mobile gift card apps when available? Are they better than keeping it in your wallet?

Facebook Gift Cards And Gift Card Laws: Buyer Beware

10/15/11 UPDATE: Facebook has updated it's Payment Terms. Facebook credits no longer expire. However, if unclaimed property laws apply to your Facebook Credits, they may be turned over to the state.

Earlier this year, major retail outlets such as Target and Walmart started selling the Facebook Gift Card. We just recently got around to reviewing the gift card and generating a Gift Card Score. There are a few important things to note if you are considering this product.

Facebook Credit Terms vs Facebook Gift Card Terms

The Facebook Gift Card is used to purchase Facebook Credits, the virtual currency used on Facebook to play games and buy virtual goods on Facebook. In short, the Facebook Gift Card does not expire or have any fees. Naturally, this is great to see. However, the gift card may only be redeemed in full to purchase Facebook Credits. After you redeem your gift card and convert it to Facebook Credits, the terms governing the value held by Facebook is significantly different.

Here are a couple of important thing to know when looking at the Facebook's Payment Terms:

• Facebooks says they "may redeem those credits by sending virtual gifts to your Facebook friends or donating the credits to a nonprofit organization of our choice..." if the Facebook Credits have been unused for three years.
• "If you deactivate your [Facebook] account and do not reactivate it within 6 months, or if you delete your [Facebook] account, you will lose any accumulated credits."

In other words, the value you place on a Facebook Gift Card could expire before the Federal minimum of 5 years.

I've sent a note into Facebook, but have not heard back. I'll update this post if I hear from them.

Gift Card Law Loophole

Such a policy begs the question: can a company circumvent gift card laws with simple semantics? Instead of calling the value held on behalf of the consumer credits and not dollars?

The laws covering virtual currency are unclear and on the cutting edge. In fact, Facebook is not alone in thier policy of expiring virtual currencies: While writing this post I received an email from iStockphoto informing me:

"This is just a reminder from us at iStockphoto that your iStock credits will be expiring soon. iStock credits expire within 1 year of the date of purchase. So the 2 credits that you purchased on 2010-10-01 will expire on 2011-10-01. "

That's just one year from purchase date. And while I never purchased a gift card to be converted into iStock credits, it's easy the similarities.

What are your thoughts on this matter?

Why State Gift Card Laws Still Matter

August 22, 2010 was a big day for gift cards. It was the effective date of the gift card provision contained within the Credit CARD Act of 2009. The new Federal Gift Card Laws provided enhanced protection for consumers and today is the one year anniversary of the changes.

One of the key aspects of the legislation was including bank-issued gift cards. These are gift cards with Visa, MasterCard, American Express and Discover logos. State gift card laws do not apply to bank-issued gift cards and they were among the worst when it came to fees and expiration dates.

After federal laws went into effect, some companies discontinued their bank-issued gift card programs because they were no longer profitable. Others, altered their programs to be even more consumer friendly than the law requires. In the end, it was a mixed bag, but I see the changes as a positive for consumers and the gift card industry.

State Gift Card Laws Still Matter 

In the end, gift cards are popular as ever. While the federal gift card laws enhanced consumer protection, there are several states with laws exceeding consumer protection provided by those set by the federal government. In other words, state gift card laws still matter and consumers should be aware of their rights.

For example, Oregon Gift Card Law was recently changed to allow consumers to receive a cash refund if the gift card has been used once and the balance is less than $5.00. These changes will be effective January 1, 2012. 

Expect more changes to come in the area of cash back laws. It's something not covered under the federal gift card protections, so it's an obvious enhancement. Also, here is a list of states offering cash back requirements for gift cards.

5 Tips To Avoid Risky Restaurant Gift Cards

Restaurant Gift Cards are one of the most popular types of gift cards. We love treating others to a great meal. It's also no secret running a successful restaurant is one of the most challenging business models. As a result, gift cards to a restaurants can be risky and those to smaller, local restaurants can be among the most risky.

Case And Point

Earlier this week, I was watching one of my new favorite television shows, Bar Rescue, and I was reminded of the risk involved when buying a gift card.

For those unfamiliar with the shows concept: Bar Rescue takes a Bar/Restaurant on the verge of closing it's doors, brings in an expert to make some dramatic changes and at the end of the week the business often has new branding, a better trained staff and a chance to fight another day.

The episode I watched rescued Swanky Bubbles in Philadelphia. The business was losing around $4,000 a month and was on the brink of closing it's doors. At the end of the show, there was an indicating the rehabilitation efforts did not pan out and the owners reverted back to the previous brand. After the show ended, I went to the Swanky Bubbles website and learned the sell gift certificates. Naturally, this would be a risky purchase.

While a gift card to a national restaurant chain such as the Chili's Gift Card is by no means immune to becoming worthless, typically there will be warning signs the business is in trouble and you'll have an opportunity to use your gift card before the doors close for good.

On the other hand, it can be difficult to determine the financial health of a smaller independent restaurant. Furthermore, when the owners decide it's time to call it quits, the doors often close abruptly and consumers are not given one last chance to redeem gift cards.

5 Gift Card Tips

While a smaller business may not be an open book when it comes to their finances or plans to stay in business, there are several things you can do to reduce the chances of loosing value of a gift ard while still support local independent small businesses:

1. Buy a gift card to a place your recipient visits frequently. This way the gift card is sure to used sooner than later.
2. If your familiar with the restaurant, take note of it's popularity. If the restaurant is empty during prime business hours, it's a sign the money may not be coming into the business.
3. Take note of the condition of the facilities. If things are in disrepair, the business might not be generating enough cash to reinvest back into the facilities.
4. Ask the staff: "How business has been?" or "How ling have you ben here?" If there is a revolving door of servers and bartenders it could be a sign tips are low or management is poor.
5. If the business is frequently out of stock for items on the menu, it could be a sign there is not enough money in the bank to properly stock inventory.

In the end, I'm not suggesting consumers avoid gift cards to local business or restaurants. Just be aware of the risks, make a smart gift card purchase and decrease your chances of the gift card becoming worthless with the tips above.