BBB Offers CAUTION About Gift Cards/Gift Certificates

4/2/2009

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Gift cards and certificates are a great gift for friends and family especially for those that are difficult to buy for; however, BBB offers a word of caution and has a list of tips.

You are probably aware of the semi-truthful email that has been distributed throughout the internet over the past few weeks that has a list of companies that are closing due to bankruptcy. With the economy in a downturn, some companies are struggling to keep their doors open, but consumers should be aware that just because the word “bankruptcy” is used or implied, it doesn’t necessarily mean that the company is closing. Chapter 7 bankruptcy means liquidation or going out of business. The other chapters in the bankruptcy code mean things like re-organization, etc.

Tips on giving gift cards or gift certificates:

• Check out the company at www.bbb.org If BBB is aware of any bankruptcy or licensing problems, it will be listed in the report
• Ask if the card or certificate can be redeemed online
• Does it have an expiration date?
• Check the 800 number on the back to see what the current balance is (BBB has heard horror stories about scammers getting information off the back and stealing the card from right under the gift giver and receiver)
• Ask if it can be redeemed by another retailer if something should happen to the store on whose name it is offered
• Some gift cards start accruing service charges after a certain period of time, so read the fine print!
• You want to use them as soon as possible.

Some folks think that giving cash is not a very personal gift; however, it may “spend” better than some gift cards or certificates this year!
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