Gift Certificates - who uses them, and what security measures do you use?
msf
Registered Users Posts: 229 Major grins
I was reading a thread the other day, and someone was talking about a bad experience with a customer that used a gift certificates. Someone also mentioned that gift certificates can be a good money maker since sometimes they are never used and its pure profit.
So I was wondering who here does gift certificates, and what methods do you use to ensure that it isnt abused. I dont want someone to be able to recreate one with their name on it, and hand it to me as if it was a paid gift certificate. And its not exactly in the budget to get a gift card machine like what walmart uses with the magnetic back. : )
With Christmas just around the corner, I believe this is something I would like to add to my client presentation as products I offer. I figure this is basically a referral program, I could offer the client a reduced package price that takes into consideration the referral program, so they think they are getting a great value for their dollar, and are giving a gift to someone that may not have used my services without it. Perhaps a $60 package gc for $40.
So I was wondering who here does gift certificates, and what methods do you use to ensure that it isnt abused. I dont want someone to be able to recreate one with their name on it, and hand it to me as if it was a paid gift certificate. And its not exactly in the budget to get a gift card machine like what walmart uses with the magnetic back. : )
With Christmas just around the corner, I believe this is something I would like to add to my client presentation as products I offer. I figure this is basically a referral program, I could offer the client a reduced package price that takes into consideration the referral program, so they think they are getting a great value for their dollar, and are giving a gift to someone that may not have used my services without it. Perhaps a $60 package gc for $40.
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laws regarding the sale and redemption of gift certificates are complex and vary from state-to-state
examples of CA law:
- purchased gift certificates NEVER expire. you must honor them whenever they are presented (unless issued by a corporation that has filed bankruptcy and shuttered its doors)
- if client holds a gift certificate or gift card with a remaining balance of $10 or more they are entitled to a cash refund of that balance.
- if presented, a gift certificate MUST be honored unless verifiable, documented proof of prior redemption or theft exists. example: you send a PDF to a client for printing - that client sends the PDF to 100 people - you COULD be liable to redeem each and every one of those certificates.
-some states require businesses to establish an escrow account to hold collected funds for purchased gift certificates. (major downside is the revenue is taxable at collection, not redemption)
Moderator of: Location, Location, Location , Mind Your Own Business & Other Cool Shots
Done deal!
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I donated a gift certificate for a $250 photo shoot and 1 print to a local horse show to use as a prize. I know who won the prize and there won't be a problem - but there could be. Here in Canada we are not allowed to put expiry dates on purchased gift certificates. I wonder about donated ones? What's the story in the US?
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In California expiration dates are permissible on donated gift certificates.
Moderator of: Location, Location, Location , Mind Your Own Business & Other Cool Shots
Hmm, I wonder what the rules are for VA and TN. Is there an easy to navigate and easy to understand for this stuff? : )
yeah i had no idea there were rules on this stuff lol
Federally and especially for interstate transactions (ouch - scare me) try the U.S. Interstate Commerce Commission
Moderator of: Location, Location, Location , Mind Your Own Business & Other Cool Shots