Gift Card Blog - ScripSmart

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.

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.

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!

AJ Wright Stores Closing: Gift Cards Still Good Elsewhere

TJX Companies, Inc. has decided to close it's discount store brand AJ Wright. If you own an AJ Wright Gift Card, don't panic; it can still be redeemed at any other TJX brand: T.J.Maxx, Marshalls, and HomeWood location.

While the AJ Wright near you will certainly be gone soon, 91 of the 162 locations will be converted to a T.J.Maxx, Marshalls, and HomeGoods. The other 71 locations will be closed entirely. The USA Today has a list of locations which will be permanently closing.

Another Reason Why Gift Cards Redeemable At Multiple Locations

ScripSmart's Gift Card Score looks favorably on gift cards which are redeemable at sister brands; not only does it give consumers flexibility as to where they spend their gift, but it also helps minimize the risk of getting stuck with a worthless gift card.

Go Use Your Gift Cards

While an AJ Wright Gift Card will still be accepted for payment, this serves as a good reminder to one of the easiest ways consumers can be smart with gift cards: use them fast.

If you've been sitting on an AJ Wright Gift Card, go out and redeem it soon! If you have other gift cards which are laying around, signing up for a ScripSmart Account to take advantage of our helpful alert system.ScripSmart can send you reminders as to when your gift card is set to expire, become worthless and monthly summaries of the gift card you own, but have not redeemed. Sign for a free account now and let us help you get the most out of your gift cards.

Why Scratch Off Security Codes Should Be On All Gift Cards

One of the risks associated with gift cards is fraud. Unlike a credit card, a gift card can be redeemed without identification and the gift card holder is liable for the loss of a fraudulent transaction. While there are several ways a criminal can defraud consumers with gift cards, it's a much less common crime when compared to that of credit cards. Nonetheless, merchants can take steps to help protect their gift card customers. Today we're covering one of more elaborate schemes criminals perform and one simple way it can be prevented.

Gift Card Cloning

In 2009, an Oregon man, Sealtiel Chacon Zepeda, was arrested for stealing thousands of dollars from unsuspecting gift card holders. While his scheme was elaborate, Mr. Zepeda was far from a computer genius.

In short, Zepeda would steal unactivated gift cards from store shelves, take them home and duplicate each card with computer hardware and software purchased online. After collecting the gift card information, he would then place the original gift card back on the store shelves and wait for it to be purchased and activated by an unsuspecting consumers. Zepeda utilized a computer script which would automatically check the balance of each stolen gift card several times a day via the internet. As soon as the a gift card was activated (funds added to the card), Zepeda would be notified and use his version of the gift card to purchase merchandise. After the card was redeemed, the true gift card holder would be left with nothing.

Scratch-off Security Can Help

One feature currently available for gift cards is a scratch-off security code or pin. Assuming the code is not accessible via the the magnetic strip and the merchant requires the code for both balance inquiry and checkout, Mr. Zepeda's efforts would have been fruitless. 

When reviewing gift cards, we see plenty which do not have a scratch-off security code. For the most part, it seems to be for gift cards which are only redeemable in-store and not online. However, as demonstrated by the case above, scratch-off security pins should be implemented regardless of where a gift card is redeemable or purchased. 

Gift Card Score® And Scratch-off Security

ScripSmart's patent pending scoring algorithm, Gift Card Score, penalizes any gift card program which does not include a scratch off security code. Simply put, Gift Card Score is designed to help consumers easily find the best gift cards and because consumers are liable for the loss of fraudulent transactions, we believe the best gift cards have well thought out protection for gift card holders.

Note: eGift Cards are not penalized for a lack of scratch-off security.

Have They Learned?

Several companies were exposed for not having proper security measures in place; we wanted to see where they currently stand with scratch-off security protection and whether or not it's required when checking a gift card balance online. The police report named the following merchants:

Fred Meyer Gift Card

         Currently has scratch-off security, code required for online balance inquiry

Best Buy Gift Card

         Currently has scratch-off security, code required for online balance inquiry

Abercrombie & Fitch Gift Card

         Currently has scratch-off security, code not required for online balance inquiry, but CAPTCHA enabled

American Eagle Gift Card

         Currently has scratch-off security, code not required for online balance inquiry, but CAPTCHA enabled

Apple Store Gift Card

         Currently has scratch-off security, code required for online balance inquiry

Macy's Gift Card

         Currently has scratch-off security, code not required for online balance inquiry, but CAPTCHA enabled

Spencer Gifts

         Currently has scratch-off security, no online balance inquiry

The good news is a criminal would have a hard time automatically checking the balance for any of these gift cards. While both American Eagle and Abercrombie do not require the scratch-off code, they do have implemented CAPTCHA when checking the balance which ensures only a human and not automated script is requesting the balance of a gift card.