I got a $50.00 gift card from lowes in mid October, that I have not used
yet.
I have heard that wall and possibly some other stores are charging interest
on gift cards. (they loose valve,each month)
Does anyone know if this is true with lowes or not.
BTY this IS B*** S*** (stores that are doing that) as that card WAS PAID
FOR IN FULL, It's not like is being financed or anything.
Thanks, Tony D.
David Chamberlain said:
> They also pointed out that approximately 10% of all gift cards are never
>redeemed. That is an estimated 4 Billion dollars a year in free profit for
>the companies.
Now you know the rest of the story...
Just like rebates, many are never redeemed.
It's a retailers windfall.
Greg G.
In article <[email protected]>,
[email protected] says...
> In article <[email protected]>, Greg G. says...
> > David Chamberlain said:
> >
> > > They also pointed out that approximately 10% of all gift cards are never
> > >redeemed. That is an estimated 4 Billion dollars a year in free profit for
> > >the companies.
> >
> > Now you know the rest of the story...
> > Just like rebates, many are never redeemed.
> > It's a retailers windfall.
> >
>
> But only if the retailer can "expire" the card, otherwise that money
> is a liability on the books, albeit a liability that is earning
> interest. However, unless the unredeemed card is not allowed to be
> expired, the company cannot claim that money as its own.
>
Oops, that last sentence should read "However, unless the unredeemed
card IS allowed to expire, the company cannot claime the money as its
own"
Why would it be a nightmare...simply set up a corporate wide *single*
account for all gift card monies to be deposited/withdawn. Earn interest
on same while it sits there. Claim interest as profit.
For those monies that are never redeemed, the money is still there should
the gift certificate be found. But all the while, it is being used to
generate interest monies for the company. Done right, a MBA with an eye
on being the CEO could do some stats on geographical areas and marketing
campaigns which, surprise surprise, lead to a high level of non-redemption,
and in the words of the 90's "pump up the volume," but not too high as
to trigger any gov't department or consumer watch group. Please note the
sarcasm in the previous sentence, as most that would want to implement
such a strategy would be far too greedy to keep their actions in check.
There would be some accounting maintenance, and the cost of that
maintenance would be covered by the profit gained from the interest,
and lowering the amount of profit taxed via whatever convuluted
accounting laws in your country.
--
Think thrice, measure twice and cut once.
Sanding is like paying taxes ... everyone has to do it, but it is
important to take steps to minimize it.
There is only one period and no underscores in the real email address.
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On 2003-12-26, Edwin Pawlowski <[email protected]> wrote:
> There is a cost to doing that. Who should bear that
> cost? You and I that don't use them or use them promptly? Or the dummies
> that lose them or never bother to purchase against them?
Please refer to the last paragraph of my previous post to see where the source
of the funds originates to cover the cost comes from.
--
Think thrice, measure twice and cut once.
Sanding is like paying taxes ... everyone has to do it, but it is
important to take steps to minimize it.
There is only one period and no underscores in the real email address.
-----= Posted via Newsfeeds.Com, Uncensored Usenet News =-----
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-----== Over 100,000 Newsgroups - 19 Different Servers! =-----
Mark & Juanita <[email protected]> wrote in message news:<[email protected]>...
> In article <[email protected]>, [email protected]
> says...
> > I got a $50.00 gift card from lowes in mid October, that I have not used
> > yet.
> > I have heard that wall and possibly some other stores are charging interest
> > on gift cards. (they loose valve,each month)
> > Does anyone know if this is true with lowes or not.
> >
>
> My wife sells gift cards as a fund-raiser to support our local private
> high-school. She looked at the Lowe's Scrip she sells and could not
> find anything that indicates that it will expire. Most such gift cards
> will have information on the back indicated that if it is not used
> within 24 months of date of issue, an $x per month fee will be deducted
> from the card's value. Generally these fees don't start for at least 12
> months following date of issue, so if you plan to use it in the next
> year you should be good to go. Try calling the number on the card, they
> should be able to tell you whether an expiration date kicks in.
>
>
> > BTY this IS B*** S*** (stores that are doing that) as that card WAS PAID
> > FOR IN FULL, It's not like is being financed or anything.
> > Thanks, Tony D.
> >
> >
>
> Yeah, it really is bad for the type of programs the high school is
> benefiting from because the date of issue is when the scrip issueing
> company issues the card, which could be some time before a purchaser
> actually gets the card in hand.
>
> It's a matter of the accountants running the world again. You are
> correct in the fact that the company has received the money; these
> certificates show up as income in the year in which they are sold.
> However, after that time, they show up as a liability on the company's
> bottome line. So, a large number of uncashed gift cards starts adding
> to the company's liabilities in future years, thus they start reducing
> that liability by charging a monthly "service" fee until the card is
> exhausted.
>
> >
In many states, such as Pennsylvania, there is an"unclaimed property"
law requiring that all unclaimed property be turned over to the state
after some period of time. Unclaimed property specifically INCLUDES
unused gift cards (as well as checks that you have issued and the
recipient has not cashed). The "wasteing" clauses of these gift cards
is a way around that requirement and are often set up such that the
card becomes worthless right about at the time that it would have had
to have been turned over to the state. The PA Treasurer has made a
real big deal out of enforcing the law in the last 6 or 8 years and
you can get in real big trouble just writing off uncashed checks now.
Dave Hall
In article <[email protected]>, [email protected]
says...
> I got a $50.00 gift card from lowes in mid October, that I have not used
> yet.
> I have heard that wall and possibly some other stores are charging interest
> on gift cards. (they loose valve,each month)
> Does anyone know if this is true with lowes or not.
>
My wife sells gift cards as a fund-raiser to support our local private
high-school. She looked at the Lowe's Scrip she sells and could not
find anything that indicates that it will expire. Most such gift cards
will have information on the back indicated that if it is not used
within 24 months of date of issue, an $x per month fee will be deducted
from the card's value. Generally these fees don't start for at least 12
months following date of issue, so if you plan to use it in the next
year you should be good to go. Try calling the number on the card, they
should be able to tell you whether an expiration date kicks in.
> BTY this IS B*** S*** (stores that are doing that) as that card WAS PAID
> FOR IN FULL, It's not like is being financed or anything.
> Thanks, Tony D.
>
>
Yeah, it really is bad for the type of programs the high school is
benefiting from because the date of issue is when the scrip issueing
company issues the card, which could be some time before a purchaser
actually gets the card in hand.
It's a matter of the accountants running the world again. You are
correct in the fact that the company has received the money; these
certificates show up as income in the year in which they are sold.
However, after that time, they show up as a liability on the company's
bottome line. So, a large number of uncashed gift cards starts adding
to the company's liabilities in future years, thus they start reducing
that liability by charging a monthly "service" fee until the card is
exhausted.
>
David Chamberlain wrote:
> They also pointed out that approximately 10% of all gift cards are never
> redeemed. That is an estimated 4 Billion dollars a year in free profit for
> the companies.
No, it isn't. They cannot count it as profit - they must account for
it as a 'liability' ($$ owed) on the accounting books. That's why they
started putting expirations on them -- because a whole lot of morons
lost them or didn't redeem them - which was an accounting nightmare that
the companies never expected to have to deal with. As usual...a few
clowns ruined it for the rest of us.
--
************************************
Chris Merrill
[email protected]
(remove the ZZZ to contact me)
************************************
"anthony diodati" <[email protected]> wrote in message
news:[email protected]...
> I got a $50.00 gift card from lowes in mid October, that I have not used
> yet.
> I have heard that wall and possibly some other stores are charging
interest
> on gift cards. (they loose valve,each month)
> Does anyone know if this is true with lowes or not.
>
> BTY this IS B*** S*** (stores that are doing that) as that card WAS PAID
> FOR IN FULL, It's not like is being financed or anything.
> Thanks, Tony D.
>
Some stores were doing that after 12 or 24 months of non-use. In CT, it is
forbidden by law now.
I imagine they are carried on the books for some period of time and it is a
way of the sellers to clear up the account and the cash reserves if they
have been lost or not used for a long time.
Ed
Hey good deal, Thanks,
Tony D.
"Mark & Juanita" <[email protected]> wrote in message
news:[email protected]...
> In article <[email protected]>, [email protected]
> says...
> > I got a $50.00 gift card from lowes in mid October, that I have not used
> > yet.
<snip>
> > I have heard that wall and possibly some other stores are charging
interest
> My wife sells gift cards as a fund-raiser to support our local private
> high-school. She looked at the Lowe's Scrip she sells and could not
> find anything that indicates that it will expire. Most such gift cards
> will have information on the back indicated that if it is not used
> within 24 months of date of issue, an $x per month fee will be deducted
> from the card's value. Generally these fees don't start for at least 12
> months following date of issue, so if you plan to use it in the next
> year you should be good to go. Try calling the number on the card, they
> should be able to tell you whether an expiration date kicks in.
>
>
> > BTY this IS B*** S*** (stores that are doing that) as that card WAS
PAID
> > FOR IN FULL, It's not like is being financed or anything.
> > Thanks, Tony D.
> >
> >
>
> Yeah, it really is bad for the type of programs the high school is
> benefiting from because the date of issue is when the scrip issueing
> company issues the card, which could be some time before a purchaser
> actually gets the card in hand.
>
> It's a matter of the accountants running the world again. You are
> correct in the fact that the company has received the money; these
> certificates show up as income in the year in which they are sold.
> However, after that time, they show up as a liability on the company's
> bottome line. So, a large number of uncashed gift cards starts adding
> to the company's liabilities in future years, thus they start reducing
> that liability by charging a monthly "service" fee until the card is
> exhausted.
>
> >
OK, Just got a $30.00 Gift Card for Wall-Mart.
Says on the back loose's $1.00 a month after 24 months.
Thats not too bad.
Don't see anything on the back of the lowes card.
Could be. I got a gift card worth $100 to a store. After 6 months I
> treied to use it and it expired. Gift Cards are not good gifts,
> although very good for the store.
Thats Not Good.
Thanks, Tony D.
"Phisherman" <[email protected]> wrote in message
news:[email protected]...
> On Mon, 22 Dec 2003 00:02:44 -0500, "anthony diodati"
> <[email protected]> wrote:
"Mo' Sawdust" <[email protected]> wrote in message
news:[email protected]...
> On 2003-12-26, Edwin Pawlowski <[email protected]> wrote:
> > There is a cost to doing that. Who should bear that
> > cost? You and I that don't use them or use them promptly? Or the
dummies
> > that lose them or never bother to purchase against them?
>
> Please refer to the last paragraph of my previous post to see where the
source
> of the funds originates to cover the cost comes from.
>
> --
> Think thrice, measure twice and cut once.
>
> Sanding is like paying taxes ... everyone has to do it, but it is
> important to take steps to minimize it.
>
> There is only one period and no underscores in the real email address.
>
>
>
>For those of you who have gotten the gift card from buying other tools, how
long has it taken you to recieve it. I am waiting on mine to use against the
price of a shop vac.
--
Paul
[email protected]
It could also be illegal. Gift certificates and gift cards have no
expiration date in the state of California. Check with your states consumer
affairs office.
John
"anthony diodati" <[email protected]> wrote in message
news:[email protected]...
> OK, Just got a $30.00 Gift Card for Wall-Mart.
> Says on the back loose's $1.00 a month after 24 months.
> Thats not too bad.
> Don't see anything on the back of the lowes card.
>
> Could be. I got a gift card worth $100 to a store. After 6 months I
> > treied to use it and it expired. Gift Cards are not good gifts,
> > although very good for the store.
>
> Thats Not Good.
>
> Thanks, Tony D.
>
> "Phisherman" <[email protected]> wrote in message
> news:[email protected]...
> > On Mon, 22 Dec 2003 00:02:44 -0500, "anthony diodati"
> > <[email protected]> wrote:
>
>
In article <[email protected]>, Greg G. says...
> David Chamberlain said:
>
> > They also pointed out that approximately 10% of all gift cards are never
> >redeemed. That is an estimated 4 Billion dollars a year in free profit for
> >the companies.
>
> Now you know the rest of the story...
> Just like rebates, many are never redeemed.
> It's a retailers windfall.
>
But only if the retailer can "expire" the card, otherwise that money
is a liability on the books, albeit a liability that is earning
interest. However, unless the unredeemed card is not allowed to be
expired, the company cannot claim that money as its own.
On Mon, 22 Dec 2003 00:02:44 -0500, "anthony diodati"
<[email protected]> wrote:
>I got a $50.00 gift card from lowes in mid October, that I have not used
>yet.
>I have heard that wall and possibly some other stores are charging interest
>on gift cards. (they loose valve,each month)
>Does anyone know if this is true with lowes or not.
>
> BTY this IS B*** S*** (stores that are doing that) as that card WAS PAID
>FOR IN FULL, It's not like is being financed or anything.
> Thanks, Tony D.
>
Could be. I got a gift card worth $100 to a store. After 6 months I
treied to use it and it expired. Gift Cards are not good gifts,
although very good for the store. Why not call Lowes to find out?
On Tue, 23 Dec 2003 19:42:43 -0500, Greg G. wrote:
>David Chamberlain said:
>
>> They also pointed out that approximately 10% of all gift cards are never
>>redeemed. That is an estimated 4 Billion dollars a year in free profit for
>>the companies.
>
>Now you know the rest of the story...
>Just like rebates, many are never redeemed.
>It's a retailers windfall.
>
Not anymore in CT.
Now it would be a windfall for the STATE! <G>
Barry
David Chamberlain wrote:
> They also pointed out that approximately 10% of all gift cards are never
> redeemed. That is an estimated 4 Billion dollars a year in free profit
> for the companies.
I got a $25 gift card to Lowe's... The giver didn't keep the receipt, and I
lost the damn thing somehow.
It's in this room somewhere. Has to be. It's depressing to think that if I
ever find it, it will probably have no value.
(Yeah, my den *is* a mess.)
--
Michael McIntyre ---- Silvan <[email protected]>
Linux fanatic, and certified Geek; registered Linux user #243621
http://www.geocities.com/Paris/Rue/5407/
On Fri, 26 Dec 2003 15:28:05 GMT, Chris Merrill
<[email protected]> wrote:
>No, it isn't. They cannot count it as profit - they must account for
>it as a 'liability' ($$ owed) on the accounting books.
Agreed! It's basic Accounting 101.
>That's why they
>started putting expirations on them -- because a whole lot of morons
>lost them or didn't redeem them - which was an accounting nightmare that
>the companies never expected to have to deal with.
In these days of computerized accounting, I wouldn't exactly call it a
NIGHTMARE. It's not like Ebenzer Scrooge has to manually tally and
record the totals. <G>
Heck, any small biz that uses Quick Books or Peachtree can easily
carry gift certificate balances. I'm sure the systems the BORGS or
*-Marts have in place deal with it quite easily.
In the meantime, the merchants can at least earn money market rates on
the balances.
Barry
On 22 Dec 2003 10:54:44 -0800, David Hall <[email protected]> wrote:
>>
>> It's a matter of the accountants running the world again. You are
>> correct in the fact that the company has received the money; these
>> certificates show up as income in the year in which they are sold.
>> However, after that time, they show up as a liability on the company's
>> bottome line. So, a large number of uncashed gift cards starts adding
>> to the company's liabilities in future years, thus they start reducing
>> that liability by charging a monthly "service" fee until the card is
>> exhausted.
>>
>> >
>
> In many states, such as Pennsylvania, there is an"unclaimed property"
> law requiring that all unclaimed property be turned over to the state
> after some period of time. Unclaimed property specifically INCLUDES
> unused gift cards (as well as checks that you have issued and the
> recipient has not cashed). The "wasteing" clauses of these gift cards
> is a way around that requirement and are often set up such that the
> card becomes worthless right about at the time that it would have had
> to have been turned over to the state. The PA Treasurer has made a
> real big deal out of enforcing the law in the last 6 or 8 years and
> you can get in real big trouble just writing off uncashed checks now.
>
> Dave Hall
I recall a discussion with an acquaintence who worked for American
Express at the time.
He claimed that AMEX made billions of dollars every year investing the
face value of unused travelers checks.
The TV stations have been having a field day exposing these gift card
scams. The biggest mall chain in Georgia offers gift cards. After 6
months, there is a 2.5% per month service charge. The TV station
recommended not buying gift cards if there is an type of service fee or any
type of expiration date. For Pete's sake, they've already got your money
and are making interest and now they want to charge you even more.
They also pointed out that approximately 10% of all gift cards are never
redeemed. That is an estimated 4 Billion dollars a year in free profit for
the companies.
--
dbchamber at hotmail spam dot com
Remove the spam to reach me
"John Emmons" <[email protected]> wrote in message
news:cD%[email protected]...
> It could also be illegal. Gift certificates and gift cards have no
> expiration date in the state of California. Check with your states
consumer
> affairs office.
>
> John
>
> "anthony diodati" <[email protected]> wrote in message
> news:[email protected]...
> > OK, Just got a $30.00 Gift Card for Wall-Mart.
> > Says on the back loose's $1.00 a month after 24 months.
> > Thats not too bad.
> > Don't see anything on the back of the lowes card.
> >
> > Could be. I got a gift card worth $100 to a store. After 6 months I
> > > treied to use it and it expired. Gift Cards are not good gifts,
> > > although very good for the store.
> >
> > Thats Not Good.
> >
> > Thanks, Tony D.
> >
> > "Phisherman" <[email protected]> wrote in message
> > news:[email protected]...
> > > On Mon, 22 Dec 2003 00:02:44 -0500, "anthony diodati"
> > > <[email protected]> wrote:
> >
> >
>
>
"Mo' Sawdust" <[email protected]> wrote in message
news:[email protected]...
> Why would it be a nightmare...simply set up a corporate wide *single*
> account for all gift card monies to be deposited/withdawn. Earn interest
> on same while it sits there. Claim interest as profit.
>
> For those monies that are never redeemed, the money is still there should
> the gift certificate be found. But all the while, it is being used to
> generate interest monies for the company.
It may be done with the money pretty much as you say, but each individual
card must be tracked as purchases are made. That means tens of thousands of
cards in the computer. There is a cost to doing that. Who should bear that
cost? You and I that don't use them or use them promptly? Or the dummies
that lose them or never bother to purchase against them? Don't tell me the
company should as they don't pay for anything. All costs are passed on to
the consumer one way or another.
What they are doing is no different than what banks do for accounts below
the minimum and have no activity. After a period of time, there is a service
charge and it is legal to do so. As they stand presently, the cards are not
registered and the store has no way to contact you to send a reminder. I
agree that 6 months is too short, but after 24 months, a small charge should
be made for maintenance.
Ed