Gift Certificates expire?

[Dsheree]

Has anyone done the research on Texas laws for gift certificates and expiration. I've been told in Canada they can't expire & other state in the US have strict laws about expiration terms.

What have you found.

[photobykim]

i know that some of the big retail locations (like blockbuster and I only point them out because I worked at blockbuster for about a year not to long ago) but after a certain period of time they begin to lose money until they're empty and it really makes people mad.

But as far as the laws on it, not sure.

[CobyPhoto]

Most issuing companies have policy stated in the agreement when you buy the certificate. If the issuing company states it expires XXX or as Kim points out, little by little, then you are basically agreeing to those terms when you purchase the certificate.

There was a news show about this right before Christmas, that pointed out this facet of gift certificates and cards, in order to educate consumers to be aware that holding on to the cards/certificates for a long period, usually over a year, might not be a wise idea.

CJ

[HotHolly]

I just got rid of a gift card. If you have any from a major store - like Blockbuster- you can look on the back for a list of states where it cannot expire. I think Texas does allow gift certificates/ cards to expire. In several states its illegal. Here's CAs info on the matter:

California law now holds that it is unlawful to sell a gift certificate that contains any of the following:

1. An expiration date;
2. A service fee, including, but not limited to, a service fee for dormancy (except under severe restrictions); OR
3. A term that makes its redemption or other use invalid in the event of a bankruptcy.

[Dsheree]

So if Texas starts doing this....which the rumor I'm hearing is they are thinking about it...then what can we do for auctions?

How about coupons? Like if you buy $100 then you get $200 products free...or something like this.

I do a lot of auctions and get good response form them.

Any alternate ideas to gift certificates?

[HotHolly]

We donate gift certificates to auctions too. Instead of a dollar amount, you can make it good for XYZ service (a value of $). Then they cant come in with the gift card and ask to cash it out (which can happen elsewhere) - its only good for the service.

We are still thinking about this too...any other ideas out there?

[bondarnes]

The only reason I put an expiration on donated gift certificates is an effort to keep people from putting them away and forgetting about them. Most of the time I put an expiration about a year from the auction date. My donation gift certificates are always for a specific service such as a basic studio family portrait session and a coronet color 14X11 family portrait. And then there is always fine print at the bottom. subject to studio advertising policies. certificate is valid only for a portrait of the entire family. certificate is no longer valid after ______ unless extended by studio manager. certificate cash value $.10. No two offers may be combined. etc.
We often extend a gift certificate past the expiration because we want the person to actually use it. The fact that they call to ask if we will extend it means that they really want a family portrait. We have never extended a gift certificate that did not pay off for us.

[HotHolly]

Originally Posted by bondarnes

certificate cash value $.10. No two offers may be combined. etc.

You are so smart! I need to add that to our stuff. Especially the last one. I had one girl go around town collecting our donations to local organizations. She had collected several hundred dollars worth. It dawned on me she could have gotten enough of them to cover a small wedding, if she wanted to. Learning the hard way is expensive. Glad you're around!

[bondarnes]

Originally Posted by HotHolly

You are so smart!

I'm not all that smart. I've just made most of the mistakes already. Our first year in business we ran a newspaper ad offering a session and a free 5X7 with almost no restrictions. We learned a valuable lesson after the orphanage showed up with a bus load of their residents.

I started to read the fine print on all the offers I get in the mail and ask myself, "Which of these can I apply to my business?" Some of them make a lot of sense, some don't.

However don't get in the trap of making a new policy for each little incident. I have a friend that has a twelve page book of studio policies. You would think he was a lawyer. Mine is large print on one sheet.

[LadyShutterBug]

for auctions, donations, etc. i put an expiration date on the GC... usually 6-9 mos. out from the date of the event... and I always make them good for a certain service-- never a dollar amount... and state that they have no monetary value and are not redeemable for cash.

for CG's that people purchase for their loved ones, I put an expiration date of one year from the date of purcahse... though in all honesty, if they contacted e a year later and still had the GC, I'd honor it.

[bondarnes]

Originally Posted by LadyShutterBug

for CG's that people purchase for their loved ones, I put an expiration date of one year from the date of purcahse... though in all honesty, if they contacted e a year later and still had the GC, I'd honor it.

For purchased certificates we put a 24 month expiration on them, but we keep a credit in our computer for five years. Only one time has any client used a purchased certificate after two years and she gave us a $1200.00 additional order. I have no problem with that.

[HotHolly]

Originally Posted by bondarnes

Our first year in business we ran a newspaper ad offering a session and a free 5X7 with almost no restrictions. We learned a valuable lesson after the orphanage showed up with a bus load of their residents.

That was a wicked good bargain! I'll be checking out fine print a little more closely.