Gift Card Blog - ScripSmart

App Store Gift Card Valued At $10,000 Will Be Given Away

Apple is at it again: they're giving away another $10,000 gift card. Last time they gave away a 10,000 iTunes Gift Card in celebration of the 10 billionth app downloaded. This time around it's a $10,000 App Store Gift Card to celebrate a similar milestone: 25 billion apps downloaded. The person who downloads the 25 billionth app could be the lucky winner.

Note: iTunes Gift Cards and App Store Gift Card are essentially the same thing, only called different things for marketing purposes.

First off, this is a great gift card promotion. At $10,000 the winner will be able to download a lot of stuff from the App Store/iTunes/iBooks. You can also gift things, so be sure to make note of who the lucky winner is, they'll announce it on the promotion's official web-page.

Every time you download an app, you'll be entered to win. You can also enter by submitting a web-form or calling an 888 number. I believe such an alternate method is a legal requirement when holding a sweepstakes; however, there is a chance a person who uses such an alternate method will win. Of course, that would means the person who downloaded the 25th billion app will not win.

Gift Card Promotion Tips

In late 2010, ScripSmart ran a "Review a gift card on ScripSmart, enter to win a $50 Amazon.com Gift Card" promotion. The goal was to drive more consumer reviews of gift cards, and by that measure it was a failure. It just didn't deliver more reviews for us.

While $10,000 is an extraordinary amount for a gift card promotion and one most companies will not be matching, I learned two valuable lesson regarding gift card promotions and this promotion reminds me of them:

1) Make the offer meaningful: while just about anyone would take a free $50 Amazon Gift Card, not just anyone will take the time to sigh up for an account, find a gift card and submit a review for the chance to win $50.

2) Put a full court press on marketing: After we launched the promotion, we placed a banner on the top of the website to let others know about it. I wrote a blog post and sent a message out via twitter. While those are all great steps, that is where the promotion of the sweepstakes ended. Looking back, I'd suggest a gift card in the $500 range and spend more time thinking about the most effective ways to let others know about the offer. 

The good news here is I would do it differently next time around. Cheers to them for putting together a great promotion worth talking about.

Oregon Cash Back Law For Gift Cards - Effective January 1st, 2012

June of last year, Oregon passed SB 756. In short, it requires all gift cards which are sold to be redeemed for cash if the balance is $5 or less and the gift card has been used at least once. The effective date of this legislation is January 1st, 2012.

I'm a fan of seeing cash back laws. The fact is, a consumer should not be required to spend more than the balance of a gift card in order to receive the full benefit and just 3.6% of store-issued gift cards offer a cash back option unless required by law. Because so few retailers offer a cash back policy, you can expect to see more states enact similar legislation in the future.

Not Retroactive, 2011 Christmas Gifts Are Exempt

This change to Oregon Gift Card Law is not retroactive. In other words, all of the gift cards purchased prior to January 01, 2012 are not covered by the new law. So if you received a gift card for christmas this year the merchant is not required to give you cash back. This is only for gift cards sold on January 1st, 2012 and moving forward.

Oregon Got It Right

There are several states with Cash Back Laws. The laws vary slightly, but I think a $5 threshold is reasonable for both consumers and businesses. Thankfully the legislators in Oregon decide to make this rather simple. However, the legislators in Massachusetts did a poor job of crafting a law which is easy for everyone to understand and, in turn, comply.

Massachusetts General Law Part II Title II Chapter 200A, Section 5D reads:

"A purchaser or holder of a gift certificate which, by its terms, prohibits the purchaser or holder from adding value thereto and which has been redeemed for at least 90 per cent of its face value shall make an election to receive the balance in cash or continue using the gift certificate. A purchaser or holder of a gift certificate which, by its terms, authorizes the purchaser or holder to add value thereto and which has been redeemed in part, such that the value remaining is $5.00 or less, shall make an election to receive the balance in cash or continue using the gift certificate."

That's a mouth full and not very easy for consumers or business owners to understand. I'm not sure why the notion of adding value would even be a factor. Furthermore, adding a percentage in the mix just seems to over complicate the situation. In short, a gift card is redeemable for cash if:

1. The gift card is not reloadable, has been used at least once and the balance is less than $5

2. The gift card is not reloadable and at least 90% of the funds have been redeemed.

For more detail, take a look at ScripSmart's full list of cash back laws for gift cards for each state. Cheers to Oregon's legislators for getting this one right.

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.

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?

Walmart Uses Gift Cards For Christmas Price Guarantee

As part of the Walmart's Christmas Price Guarantee campaign, the company will issue gift card to consumers instead of cash. The program starts November 1st, 2011 and runs through Christmas Day. In short, if you purchase an item at Walmart and find it for less, they company will issue a Walmart Gift Cards  for the difference. Check out the full details here.

A Growing Trend: Gift Cards Not Just For Gifts

I've written about the trend of merchant's using gift cards to compensate consumers before. This is another example of a company leveraging it's gift card program in a nontraditional way. There are several reasons why companies like to offer consumers gift cards instead of cash. Here are three reasons:

1) Walmart knows where the money will be spent.

2) Gift cards bring consumers back to the store at a later date.

3) Often consumers spend more than the gift card's balance.

In the future, you can expect to see gift cards used for more than just gift giving. In fact, I recently received a $5 Target Gift Card for making a purchase at Target. Basically, instead of needing to use a $5.00 off coupon, I paid full price for the product and received my gift card at the checkout counter.

3 Reason To Frequently Check The Balance Of Your Gift Card

When reviewing and scoring gift cards for ScripSmart, we like to see multiple options for checking the balance of a gift cards. From  online, by phone to in-store, the more options the higher the Gift Card Score. The fact is, making it easy for a gift cardholder to obtain their balance is an important component of providing a consumer friendly gift card program.

Here are 3 why you should frequently check the balance of your gift card:

1. Motivation To Redeem

We recommend keeping the total value of gift cards you have unredeemed to a minimum. By knowing the balance of your gift cards, you just might find that extra push to get out there and use them. The difference between having a $10 gift card to Starbucks on your iPhone and $450 worth of gift cards from 5 different merchants sitting in the drawer is huge.

2. Avoid Post-sale Fees

If there are post-sale fees, they are often deducted monthly and in amounts less than $5 per month. If you're holding on to a gift card and see a fee was deducted, you'll catch it right away and have the opportunity to redeem before another deduction reduces your balance. Those with visa gift cards should especially take note of this point.

3. Avoid Gift Card Fraud

A good friend recently told me a story of the remaining balance of their gift card mysteriously disappearing. In short, they used a portion of the gift card's balance and when they went back to use the remaining portion it was gone. It turns out the server of the restaurant gave themselves a $20 tip! If there should be value remaining after you use a gift card, always check the balance to ensure it's accurate.

Do You Have A Lot Of Gift Cards?

If so, you need a little help getting the motivation to redeeming your gift cards. The good news is you're in luck: ScripSmart offers a free account system which allows you to register gift cards you own and, in turn, receive helpful alerts. One such alert is a monthly summary of the gift cards in your account. We also offer 'nag-me' alerts which bug you into redeeming those gift cards ASAP. Create your ScripSmart accoutn here.

eGift Cards On ScripSmart Are Now Easier To Spot

When most of see an egift card option for a gift card, we simple think it's the same as a regular plastic gift card, only delivered by email. However, it's rather common for a company's virtual offering to have  different terms and features when compared to it's plastic counterpart.

For example, the DSW eGift Card is not redeemable in-store however it's plastic counterpart the DSW Gift Card can be use both in-store and online. That's an important detail and something every person should know before making a purchase. The DSW is just one of many examples and as a result, ScripSmart scores 'gift cards' and 'egift cards' as separate products with seperate Gift Card Scores.

Up to this point, ScripSmart has simply labeled a traditional plastic gift cards a 'Gift Card' and electronically delivered gift cards an 'eGift Cards'. For example there is both an Amazon Gift Card vs an Amazon eGift Card. However, simply labeling the card type is not enough to distinguish between egift cards and traditional plastic gift card reviews while browsing of ScripSmart.

The fact is, most of us simply look at the image of the gift card. For example, if you were looking for at the Christmas gift card category in ScripSmart, you'd see both egift cards and traditional plastic gift cards displayed and most of the web page is covered by images of gift cards. 

The Solution

Moving forward, egift cards on ScripSmart will be identifiable by three traits:

1) An @ symbol will be placed on each gift card image. We're using the @ symbol because most egift card are delivered via email.

2)  The product image will have square corners and traditional plastic gift cards will have rounded corners. 

3) It will still carry the label 'eGift Card' or 'Gift Card' in the product's name.

Below is an example, you should be able to distinguish the difference, now just by looking at the image of the product.

Yes, the image on the left is an eGift Card.

Hopefully, this makes ScripSmart just a bit easier for you to use. If you have thoughts or suggestions on how to make ScripSmart better, simply contact us to share your thoughts!

Do you think this is a good change for ScripSmart?

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.

Buy A Home Depot Gift Card, Donate 5% To Veterans

The Home Depot has teamed up with The Mission Continues to launch a "Celebration of Service" fund-raising campaign. There are several ways to participate, one of which is buying a Home Depot Gift Card.

If you buy a "Celebration of Service Themed" gift card from now until Veterans Day, November 11, 2011, The Home Depot will donate 5% of the face value to help complete 200 service projects in 60 days which are aimed specifically at improving homes, facilities and community centers where veterans live and receive services.

This is a rather clever gift card promotion and just another way gift cards are being used for more than just gift giving. Cheers to The Home Depot for coming up with a great way to promote their gift card while giving back to the country.

The Best Of Both Worlds

Just to clarify: the great thing about this promotion is you get the full value of the gift card and the great feeling a donation is being made on your behalf. For example, when you buy a $200 Celebration of Service themed Home Depot Gift Card, you'll still get the $200 gift card and the home depot will donate $10.

Full details of the promotion can be found here on the The Home Depot Foundations website.

Last Day To Use Borders Gift Cards: September 27, 2011

If you're still holding on to a Borders Gift Card, you better use it quick. While most locations across the country have closed their doors, you can still use the gift card onile at borders.com, but you don't have long.

I reached out to Borders this week and was informed:

"Please be informed that we are still accepting gift cards for online orders, we are still honoring gift cards up until September 27, 2011."

First off, cheers to Borders for having an answer and and exact date.

Second, you have less than two weeks to use that gift card online.

Third, being that it's online, you have no excuse other than to pull the card out, place an order and get something in exchange for your gift cards. 

Remember, when a merchant goes out of business it's gift cards become worthless because there is nowhere to redeem the gift card. Furthermore, there is never enough money in the bank to cover all the debts of the business and unfortunately gift cardholders fall low on the priority list for repayment.

So, here is the link to borders.com.

If This Is News To You

If you're just hearing about this, you should sign up for a free ScripSmart account where you can add the card you own and get helpful gift card alerts. It's a free service and we've already sent out several emails to those who register the Borders Gift Card with us. Sign up here.