Redeeming Gift Cards In This Hard Economic Times

With the tough economy weighing on all our minds, this holiday season could be make-or-break for a lot of eTailers. So, like Bryan Eisenberg mentioned in his recent blog, and relying on the status-quo isn’t wise.

The 2008 holiday season came with worldwide economic woes and in light of the difficult financial times, holiday gift recipients are now being encouraged to spend those gift cards as soon as possible to avoid a situation where gift cards are no longer honored when a retail store files for Chapter 11 Bankruptcy Protection.

"When a company files for Chapter 11, federal law does permit retailers to stop honoring gift cards. So that's something we may see if Christmas shoppers purchase gift cards at stores that have already filed Chapter 11 - the gift cards may not be honored after the holiday shopping season. I also expect we'll see a few retailers file Chapter 11 after the holiday season, to avoid a decrease in gift card sales, but this leaves the consumers in a bad position with a gift card that may be worthless," explained economist Michael Bloom in a November 2008 sit-down interview with Suite101.

Some retailers may also put a hold on gift card redemption, which is permissible under federal law.
Bloom offered a few tips for holiday shoppers who purchase a gift card and for gift card recipients, who may be wondering about the best way to redeem a gift card.

Search Internet Before

Before setting off on a holiday shopping trip, do a quick internet search to learn if a particular retailer has filed for Chapter 11 Bankruptcy Protection. Some major national retailers that have recently filed for Chapter 11 include Circuit City, Linens N' Things and The Sharper Image.

Spend Your Gift Cards ASAP.

It's best to spend a gift card as soon as possible during times of economic instability to avoid ending up with a worthless gift card that cannot be redeemed because a store has gone out of business.

Consider a American Express Gift Card or Mall Gift Card

Rather than purchasing a gift card for a specific retailer, instead give the gift of an American Express Gift Card, which is good at virtually any store worldwide. Many malls, like Simon Malls (throughout the U.S.) offer gift cards that are good at all mall stores. These types of companies are generally more stable than retailers.

Read The Fine Print on Gift Card

Many gift cards have dormancy fees that are deducted from the gift card balance after the card has been inactive for a certain period of time. Some gift cards even have expiration dates, so read the fine print on the gift card to avoid losing value. This varies from state to state, as some states do not allow for gift card expiration dates.

Notably, when a company files for Chapter 11, this does not necessarily mean that a company will be going out of business. Chapter 11 Bankruptcy Protection allows a retailer to restructure in a way that will allow them to remain in business as they pay off creditors and debts.

Some companies do ultimately go out of business, making gift cards worthless. While other companies recover and remain in business for many years after filing for Chapter.

In recent years, the popularity of gift cards has skyrocketed, but while the gift of a gift card gives the recipient the ability to select their own gift, there's also potential downside to this popular holiday gift idea.

PS: Gift cards can be redeemed at REI.com and REI-OUTLET.com, at an REI Store, or by phone at 1-800-426-4840.

* Original address of this China gift post: China Gift and Fine Arts & Crafts in China

Personalize Your Gift Card with Heart

Gift cards are no more than just gifts and no longer considered the impersonal and lazy way to celebrate a special occasion or holiday, meaning gift giving has never been easier, it's the new way to reduce the rising cost of living!

Buying gift cards at a discount is almost like buying cash at a discount. Consumers are realizing that it's now more than just about giving - it's about saving. Customers who purchase gift cards from us and then use them as the method of payment at their favorite merchants are significantly reducing their shopping expenses. it's the new trend on how to fight the rising cost of living.

If you've ever had an awkward gift giving moment, or have had to fake your enthusiasm over a gift from a caring, thoughtful person in your life because the chosen item just wasn't anything you had a use for, you'll understand the benefits below of a gift card.

1.Perfect for business incentive programs and employee bonuses.

2.Personalized gift cards can be ordered online.

3.The prepaid Visa Card is accepted anywhere.

4.Available in any amout you want.

5.No fee to view a transaction history online.

Personal Shopping Spree

Gift cards are available from many businesses, specialty stores, as well as gift cards through nationally known credit card companies that can be used anywhere that accepts that credit card. Though it might seem more personal to buy a gift card or gift certificate for a special business, you are limiting the redeemable options.

- No boundaries on purchases. The recipients can buy whatever they want, wherever they want.

- No longer associated with lazy or thoughtless giving, a gift card can be seen as a personal shopping spree given by you. Some of the benefits are

- No duplication of gifts that have to be returned

- The card can be used along with cash for a purchase that the recipient has always wanted but found too extravagant to buy.

- The recipients receive exactly what they've wanted.

- Safely redeemed in stores or online. The gift card is only good for the amount specified, and cannot give access to personal accounts.

How to Personalize Pre-Paid Gift Cards

If you feel your gift card somehow lacks the personal touch, personalize a greeting card and tuck the gift card in the envelope. Some gift ideas:

* A Romantic Dinner for My Favorite Busy Couple

The gift card lets your friends choose the restaurant they like versus a gift certificate from the restaurant you choose. They even have the option of using the gift card for take-out and flowers, if they have an opportunity for a romantic dinner at home.

* For Your Next Wine-Tasting Tour

The personalization shows you've thought out your gift, but the card can be used not only for wine, but gas to get to the vineyard, dinner on the road, or even a special clothing accessory for the excursion.

* For Whatever Santa (the tooth fairy, Easter Bunny, etc.) Forgot to Bring

Perfect for a grandchild, niece, nephew or the neighbors child who you will not be able to spend the occasion with. The first gift is the gift card, the second gift is being able to choose and buy their own present.

* For my Favorite Shopper, A Post Holiday Sale Shopping Spree

Your gift dollars will go farther when the recipient is able to scour the after holiday bargain tables.

Gift Card Hazards

Gift cards, depending on point of purchase, can have expiration dates, non-use penalties, lost or stolen card replacement fees or other administration fees.

Before you buy, check on the state laws that pertain to your purchase. Gift cards and Gift certificates Legislation by state can be found at the National Conference of State Legislatures Website.

With the economic downturn, some of the recipients of gift cards will find they need to use them for everyday purchases. Isn't it wonderful to think that you have made their life easier with your gift, without bringing attention to their personal circumstances?

Give the gift of motivation. With a special personized gift card, you can provide your employees, parents or teachers with all the incentive and reward of cash, backed by the security and acceptance of the Visa name.

Useful Tips for Buying a Gift Card

Buying a store gift card is pretty easy. You simply pick the retailer and buy the card in the store or over the phone. Or you can buy an e-gift card online that’s e-mailed to you or your little nephew and can be used online or in stores. But there are a few issues you should consider before committing to a store card, which we’ll describe below.

Buying a bank-issued gift card requires a little more research. Terms and conditions vary widely, and information about these gift cards isn’t always easy to find. Be sure to confirm anything you’re told over the phone with information at the bank’s website. While you’re at the bank’s site, read over the frequently asked questions/FAQ section.