Gift card (also known as gift certificate in North America, or gift voucher or gift tokens in the UK) is a prepaid pre-paid value card typically issued by a retailer or bank for use as an alternative to cash for a particular store or business-related purchase. Gift cards are also provided by retailers and marketers as part of a promotional strategy, to draw incoming recipients or return to the store, and sometimes the card is called cash card . Gift cards are generally redeemable only for purchases at relevant retail places and can not be cashed, and in some situations may be subject to expiration or expense dates. Visa and MasterCard credit cards produce general gift cards that do not need to be redeemed at certain stores, and are widely used for the cashback marketing strategy. The feature of this card is that they are generally anonymous and discarded when the value stored on the card is depleted.
From a buyer's point of view, a gift card is a gift, given in place of objects that the recipient does not need, when giving cash as a gift can be considered socially inappropriate. In the United States, gift cards are very popular, in 2006 as the second prize given by consumers and the most wanted gifts by women, and the most sought after by men. Gift cards have become increasingly popular as they alleviate donors choosing specific gifts. In 2012, nearly 50% of all US consumers claim to have purchased gift cards as gifts during the holiday season. In Canada, $ 1.8 billion is spent on gift cards, and in the UK it is estimated to have reached £ 3 billion in 2009, while in the United States about US $ 80 billion was paid for gift cards in 2006. Card gift recipients can use it on his or her own discretion within the limits set by the problem, for example for the period of validity and the business that accepts the particular card.
Video Gift card
Histori
The first prize card using payment infrastructure was introduced by Neiman Marcus in late 1994, although Blockbuster Entertainment was the first company to do so on a large scale, testing its marketing in 1995 and launching it across the country the following year. Initially, the Blockbuster giftcard replaced the fake gift certificates with color photocopies and color printers that were recently introduced. The first Blockbuster giftcard transaction was processed by what then Nabanco from Sunrise, Florida. Nabanco is the first third-party platform developer for gift card processing using existing payment infrastructure. Neiman Marcus and Blockbuster were then followed by Car gas cards that initially offered the value of prepaid phones provided by MCI. Kmart with the introduction of Kmart Cash Card which in the early generations provides prepaid phone time with AT & amp; T. Then this feature is dropped because it is not profitable for Kmart and Mobil. Kmart Mags Pangilinan Cash Card is the first replacement for cash refunds when a buyer does not have a receipt for the prize. The practice of giving cash cards in lieu of cash for returns that are not received is a common thing today with most merchants. From this initial introduction, other retailers began adapting the giftcard program to replace their gift certificate program.
Maps Gift card
Functions and types
Gift cards can resemble a credit card or display a specific theme on a plastic card the size of a credit card. This card is identified by a particular number or code, not usually with an individual name, and thus can be used by anyone. They are supported by an on-line electronic system for authorization. Some gift cards can be reloaded with payment and can be used multiple times.
The card may have a barcode or magnetic strip, which is read by an electronic credit card machine. Many cards have no value until they are sold, at which time the cashier enters the amount the customer wants to put on the card. This amount is rarely stored on the card but recorded in the store database, which is cross linked to the card ID. Gift cards are thus generally not stored-value cards such as those used in many public transport systems or library photocopiers, where simplified systems (without networks) store value only on the card itself. To thwart the forgery, the data is encrypted. Magnetic strips are also often placed differently than on credit cards, so they can not be read or written with standard equipment. Other gift cards may have a set value and must be activated by calling a certain number.
Gift cards can also be customized to meet special needs. By adding a message or a special name on the front of the card, it can create individual rewards or incentives for employees to show how much they are valued.
Gift cards are divided into "open loop" or "network" cards and "closed loop" cards. The first is issued by the bank or credit card company and can be redeemed by a different company, the last by a particular store or restaurant and can only be redeemed by the issuing provider. The latter, however, tend to have fewer problems with decaying card values ​​and costs. In either case the giver will purchase a gift card (and may have to pay additional purchase or activation fees), and the cardholder will use the card value on the next deal. The third form is the "closed closed loop" card where the publisher has bundled a number of closed loop cards; for example is a free gift card for a particular mall.
Gift cards differ from gift certificates, where the latter is usually sold as paper documents with official signatures by restaurants, shops or other individual establishments as vouchers for future services; no electronic authorization. Gift certificates may or may not have expiration dates and generally have no administrative costs.
Gift cards issued by banks can be used instead of checks as a way to disburse rebate funds. Some retailers use a reward card system for refunds in lieu of cash to ensure that customers will spend money in their stores.
Charity Gift Cards allow gift givers to give charitable donations, and gift recipients to choose a charity that will receive donations.
Mobile gift cards and virtual
Mobile gift cards are delivered to the phone via email or SMS and the phone app allows users to simply carry their mobile phone. Benefits include tying them to a specific phone number and ease of distribution.
Virtual gift cards are sent by e-mail to the recipients, the benefit being that they can not be lost and that the consumer does not have to go to a brick and mortar location to buy gift cards.
Other companies have introduced virtual gift cards that users exchange on their smartphones. Since traders are not involved in repetition, it is considered a cash transfer rather than a traditional gift card.
Error
It has been argued that the holidays provide a devastating value because of unsuitable gifts. The most efficient way to keep the value in gift giving is to give money; however, this is only socially acceptable within limits. Gift cards, to some extent, can overcome this problem but have certain pitfalls. Some people feel that the lack of thought to choose a particular gift makes the gift card a worse option than the less-done individual prizes. New products in the gift card industry are evolving to cope with this "non-personal" gift card trap. The new service launched by some service providers allows customization and personalization of gift cards.
Gift cards have been criticized for publishers' ability to set rules that harm buyers or card recipients. For example, gift cards may be subject to expiration dates, administration fees, usage restrictions, and in the absence of adequate protection in case of fraud or loss. Excess costs can decrease the value of a zero gift card. However, this issue has been discussed in recent years in several jurisdictions. In the United States, many jurisdictions restrict or prohibit all fees or expiration dates for gift cards. Furthermore, due to the negative impact on sales that the policy can have, most merchants have adopted and even advertised a "no expense, no expiration" policy for their gift cards, whether the state law requires it or not. In 2011, approximately 2.5% of gift cards are subject to expiration date and 2.7% for post-sale costs.
A quarter of gift card recipients still have not issued a gift card a year after receiving it, according to a Consumer Reports survey. And the majority of people say they spend more than the value of the card once they get to the store.
In the event of bankruptcy from the issuing issuer, the value payable on the gift card is considered unsecured debt, and the gift card may become worthless. If the company intends to continue trading, gift cards can be honored even in bankruptcy.
Another issue about gift cards is the growing concern of retailers and other businesses about what can be done to prevent gift cards from being used by fraudsters. Gift card information can be stolen from their rightful owner by fraudsters or they can be purchased with stolen credit card information. In recent years, cyber criminals have stepped up their efforts to take advantage of fake gift cards because they are easy to exploit with automatic brute force bot attacks. The most common form of gift card fraud is through theft of card information for cards activated by existing balances by attacking a reseller system that stores gift card data. Once the gift card is compromised, the fraudster will then check the balance through the online customer portal before using the funds or reselling in the secondary gift card market.
Redemption Level
Not all gift cards are redeemed. The card may be missing; there may be decay of time (expiration and cost) or complex redemption rules; the recipient may not be interested in the store that receives the card or is under the false assumption that not using it will save money for the giver. It is estimated that perhaps 10% of the cards are not redeemed, amounting to a gain for retailers of approximately $ 8 billion in the United States in 2006.
In 2012, more than $ 100 billion of gift cards will be purchased in the United States, where more than 20% of the gift cards will be redeemed or unused. It has garnered huge opportunities in the secondary market, similar to the secondary ticket market in the early 2000s. Some companies have created businesses in the secondary gift card market that allows consumers to sell unused gift cards or buy discounted gift cards for their favorite brands. This has helped their users regain their share of about $ 55 million per day that is never redeemed in the United States each year, by converting the unused gift cards into cash.
Rule
Canada
All Canadian provinces have laws enacted to prohibit expiration dates and fees accrued on gift cards. However, the provincial gift card law does not apply to sectors that are regulated under federal law. For example, gift cards that resemble a credit card (ie with a Visa, MasterCard or American Express card) and phone cards are governed by the federal government. Under the Federal Payment Prepared Product Regulations , effective May 1, 2014, federally administered reward cards may only impose a maintenance fee under certain conditions, and can not set an expiration date for funds on those cards.
United States
In the past, uniform standards about gift cards did not exist. This is set to change as an addendum to the 2009 CARD Credit Law directing the federal government to create consumer-friendly standards relating to gift cards. In particular, new regulations prohibit resellers from expiration dates unless they are at least 5 years after the date of card issuance or the date when the last funds were added to the card. In addition, resellers will no longer be able to assess the dormancy, inactivity, or service charges unless the card is inactive for at least 12 months, and if the cost is added after that period, the details of the fee must be clearly disclosed on the card. In addition, resellers can not collect more than one fee per month. The new provisions take effect on August 22, 2010.
Open loop cards are governed by the rules of the Financial Currency Supervisor, but supervision has been criticized. Closed loop gift cards are subject to the rules set by different state regulations, and the issuing authority varies greatly in the rules they assign to consumers. Rules can be changed by the publisher without notifying the consumer.
See also
- Rebate cards
References
Source of the article : Wikipedia
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