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The economics of unused gift cards

43 pointsby stephsmithioover 5 years ago

10 comments

JohnFenover 5 years ago
I hate getting gift cards. If someone feels the need to give me a gift but doesn&#x27;t want to put thought into it, cash would be a much better choice.<p>When I do get a gift card, what I end up doing is giving it to someone else who would appreciate it more. Or, if I can&#x27;t find such a person (it tends to be 50-50), then I sell it through a local classified ad site for 50% of the value it contains.
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Sohcahtoa82over 5 years ago
I like gift cards as long as it&#x27;s for a store that I would normally shop at anyways.<p>But a few years ago, I was given a gift card to Macy&#x27;s. I don&#x27;t shop at Macy&#x27;s and had a hard time finding something to get. Every single thing I looked at, I could get at half the price basically anywhere else. I ended up buying some kitchen stuff, but felt like the giver&#x27;s money was wasted.<p>The <i>worst</i> gift card in my experience is a Visa&#x2F;MC&#x2F;AmEx gift card. It is often a pain to deal with them if the balance on the card isn&#x27;t enough to cover a purchase unless the business you&#x27;re spending it at is capable to splitting a purchase over multiple credit cards <i>and</i> the cashier knows how to do that.
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antisthenesover 5 years ago
I only ever get Amazon gift cards. Don&#x27;t know what I would do with something like a Red Lobster gift card.<p>It&#x27;s easy to redeem them immediately and have that balance in my account forever.
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gwbas1cover 5 years ago
At least in my family, we only do gift cards for restaurants. It still has the symbolism of a well-thought gift.<p>Otherwise, I just give my niece and nephews cash.<p>(Personally, I hate gift cards. They&#x27;re usually at a place I&#x27;d never shop, so I end up buying something of marginal value.)
derefrover 5 years ago
For a while, I would receive gift cards as gifts from my mother. She isn&#x27;t the type of person to buy gift cards for people. But, for a while, she worked at a large supermarket chain, which meant that she could buy gift-cards from the store she works in <i>below cost</i>, i.e. that she could pay $90 to activate a $100 gift card.<p>This would probably be the one-and-only time that gift cards are really &quot;better than cash.&quot;
heinrichfover 5 years ago
An economist one said &quot;Socks and gift cards are the junk bonds of gifts&quot;<p><a href="https:&#x2F;&#x2F;www.npr.org&#x2F;2019&#x2F;12&#x2F;16&#x2F;788587668&#x2F;the-efficient-christmas-why-economists-hate-gifts?t=1578380529104" rel="nofollow">https:&#x2F;&#x2F;www.npr.org&#x2F;2019&#x2F;12&#x2F;16&#x2F;788587668&#x2F;the-efficient-chris...</a>
maerF0x0over 5 years ago
<a href="https:&#x2F;&#x2F;www.giftbit.com&#x2F;business-solutions&#x2F;send-gift-cards-in-bulk&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.giftbit.com&#x2F;business-solutions&#x2F;send-gift-cards-i...</a> Is trying to help close the gap so that you can get something back if it&#x27;s unredeemed
buzzertover 5 years ago
Does anybody know of any non-scammy ways to turn visa gift cards into cash&#x2F;crypto? I’d love to do something irresponsible with mine, like gamble at a bitcoin casino or something.
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ProAmover 5 years ago
I literally just toss them in the trash because I know I&#x27;ll never use them.
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SamBamover 5 years ago
I&#x27;m interested in the economics and law of when this is counted as income.<p>The article says that in the general case, the company only counts the card as income once it is redeemed. Until then it is counted as a liability.<p>This makes a little sense, since they still owe you goods and services, but (1) aren&#x27;t the goods&#x2F;services they are offering worth less <i>to them</i> than the value on the card, and (2) aren&#x27;t they generating interest off that?<p>Next, it says that under a 2009 law, the companies can start counting it as income sooner (6-24 months), and the accompanying article suggests that this is good for the companies&#x27; bottom line. But wouldn&#x27;t it really be the opposite? Before they counted it as income, surely they had all the benefits of the money and it&#x27;s not even being taxed as income yet? Wouldn&#x27;t they want to hold off on counting it as income as long as possible?
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