Card holders should also take note of the expiration date. The redemption deadline can vary from a few months to more than two years, but once it has passed, merchants are generally not obligated to honor the card.
Shopper Cheryl Green solves that problem by keeping her stash of gift cards in her wallet, where they act as a constant reminder to spend.
"I treat them like cash. I don't stuff them into a drawer," said Green. "I'm highly aware of the expiration date and I use it before any penalties are charged. I've given cards to people who toss them in their wallet and find out it's not worth what you gave it to them for. It would be tacky to tell someone about the fees when you give them the card, but I hope they read the fine print on the back."
Two years ago, Green thought gift cards made insensitive gifts. But after moving to Atlanta and receiving cards for stores such as Home Depot and JCPenney, she changed her thinking.
"With one of them, I furnished my entire bathroom. Another one got me all this cool stuff from a linen store," she said. "At Home Depot, I got an $80 state- of-the-art toaster. I even got a smoker grill that I had wanted forever and was too cheap to buy for myself. I used to think they weren't very personal, but now I'm completely ecstatic about them."
Rich's-Macy's and Barnes & Noble assess no service charges for their gift cards, nor do they enforce a minimum purchase. Cards from the Buckhead Life Restaurant Group incur no service charges or handling fees, and during selected times of the year, buyers receive an additional 20 percent value on their card purchases. Owner Pano Karatassos came up with the cards several years ago toreplace the less discreet paper gift certificates that some customers were
embarrassed to use.
"We had a lot of bugs in the first few years until we got our own software to manage it," said Karatassos. "But once we did, the business soared, and it grows every year. This year we expect to sell more than 60,000 cards."
Though maintaining gift cards for one's own company isn't cheap, said Karatassos, the cards help woo and track a loyal customer base.
Simon's Stockdale said the fees weren't a deterrent to sales during the card's second season in Atlanta.
"We're 25 percent ahead of last year's gift card sales, and the customer satisfaction with our product has been very positive," he said. "People are more satisfied with them than the gift certificates we had before. It's probably not for everybody, but it is good for a significant portion of buyers who have come back to buy more."
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TIPS FOR GIFT CARD BUYERS
Guidelines for gift cards, issued by mall owners, retailers, restaurants and other merchants, can vary dramatically. Here are tips on getting the most out of your gift.
- Learn about upfront fees: Ask merchants or banks about
handling or postage fees for the card you're considering.
- Keep the card packaging intact: The recipient needs to
know about the card fees, rules and expiration date.
- Suggest the recipient read the fine print right away.
- Pick the right card: Is the gift recipient a regular shopper
at Borders or Blockbuster? Target or Kohl's?
- Consider an option: Some gift cards are "rechargeable,"
enabling shoppers to add more dollars to the card.
- Include your receipt with the gift card (or at least hold onto it).
It may be needed to replace a lost card.
- Know your balance: Find out how to keep track. Some cards
record the amount at the register; others require customers to
check information online, in person or over the phone. There
may be a charge for checking.
- Know the expiration date: Many merchants will not honor gift
cards after the expired date.
- Know the fee schedule: Read the fine print that accompanies
the card to learn about any fees for inactive cards. Find out
how much those fees are and how often they're charged.
- Protect against loss and theft: Keep the gift card number in a
separate location so you have it to report if the card is lost or
stolen.
- Know which stores honor your card: Most Visa-sponsored cards
are accepted at all places where Visa is welcome. But many
stores do not accept American Express or its gift cards.
The Atlanta Journal - Constitution
Copyright © 2003 The Atlanta Journal-Constitution, All Rights Reserved
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