A friend of mine has sworn off gift cards. She doesn’t want to receive any this Christmas and she won’t be giving any. What happened?
She got burned. Badly.
My friend had received more than $100 of gift cards last Christmas for her favorite spa. She decided to string them out so she could pamper herself with mani-pedis every few months, starting with one in March.
But when she called the spa to make an appointment she discovered they had closed in January. Ouch!
To avoid getting into her situation, here’s what to look for if you are buying a gift card.
Pros:
- Store is busy when you visit
- Store is well stocked with goods (indicates good cash flow)
- Store is part of a national chain (not that this makes it a sure-thing!)
- A rival store just went out of business (strengthens survivor)
Cons:
- Store has cut back employees (indicates poor cash flow)
- Store had cut back hours (see above)
- There have been news reports about the store struggling
- The employees/owners say business is bad
What do you look for to decide if a store is safe to buy a gift card from?
Related:
Get a $5 gift card at TGI Friday’s when you buy one for $25 (WalletPop)
Why do you hoard gift cards? (BargainBabe)
Did you know it’s better to buy a gift card from the issuer than from a grocery store? (Get Rich Slowly)
Site to buy and sell gift cards (BargainBabe)
Gift card bonuses and perks (WalletPop)
December 10th, 2009 at 4:02 pm
When the powers that be , decide to close a store, there can be no clue, that will help. Sometimes even the workers are not told till the end of the day. Went to Applebees, the place was full, the staff was happy, that had a new menu. We were going to the movies the next day, wanted to try some of the new items on the menu. Lo and Behold they were blacked out and closed forever, glad we never had gift card for them.
December 10th, 2009 at 5:54 pm
I only buy gift cards for a place if I’ve been to that place repeatedly with the person I’m buying the g.c. for… and I generally just do movie theaters, so with chain-theaters, that’s pretty safe! Starbucks is great for teachers b/c they’re all over the place, too… and big-chain book stores seem safe also.
December 10th, 2009 at 5:57 pm
I am not a big fan of gift cards either. I try to use them as soon as possible. Sometimes my kids get giftcards for places they dont shop, and I end up buying their gift cards from them, and then trying to figure out what things i might need from a store I am not very familiar with.
December 10th, 2009 at 6:57 pm
I often get gift cards from “Tarzhet” and have always had good luck with my favorite store. As for personal gifts.. I sometimes get a gift certificate for good friends from a friend who does head/neck/shoulder massages that are divine. Never been burned by going to someone I know personally.
December 10th, 2009 at 7:35 pm
I totally agree! I got burned as well. My MIL gave us a $200 gift card to Right Start last Christmas. I went in March and they wouldn’t accept it because they were filing for Bankruptcy. I had some others totaling $350. I was saving up for a car seat and my son was too young for a new one in December. I filed with the bankruptcy court – big mistake. Now they are open again and they are accepting the old gift cards. But because I filed with the court, they won’t accept mine. So I am waiting for the court to send me something if anything. And it is is almost 9 months later. Argh!
December 11th, 2009 at 9:44 am
gift cards can get misplaced, I am looking for one for a massage and cannot find it. Generally, have not had much trouble with cards.
December 11th, 2009 at 9:55 am
What I like best is a gift card from Visa so I can shop the after Xmas sales!
December 11th, 2009 at 10:26 am
I lose cash on in-store credit for a return, seems they get lost or I just never get over there.
December 11th, 2009 at 1:18 pm
I like giving gift cards and getting gift cards. It makes it easy for everyone. You can be creative with them. I am adding a cozy blanket from Macy’s with a Barnes & Noble card. Got the blanket for a steal, paid only 11.99 for a 40.00 throw. It’s called my cozy gift. Nothing like a good book and a cozy blanket. Next one is a Starbucks card with an Itunes card. Call that one “move it” gift. Music and Coffee. So you see gift cards can make a gift fun.
December 11th, 2009 at 5:08 pm
I like gift cards because I’m very hard to buy gifts for. I like to give gift cards for the same reasons. Starbucks cards can be registered online and they will replace lost cards (I know thru first hand experience). We do a lot of itunes, Borders, Starbucks, & Target. All major retailers so less likely to close.
December 18th, 2009 at 12:15 pm
SBUX is not doing well at all. Huge cut backs (as to hours open, employees) at nearly every store, even the big, busy ones. Their prices have gone up, no more discounts or freebies, they nickle and dime you now.
Not saying your gift cards will be in danger anytime soon!
It’s just that business is definitely not looking good.
I used to work for them, so I hear a lot of stuff. People are quitting like crazy, and they’re firing a lot of people,too.
December 20th, 2009 at 9:55 am
[...] left the comment in response to my post about the perils of giving gift cards. My main point was that with some businesses teetering close to bankruptcy, you want to be careful [...]