Gift Cards, Store Credit etc..

Ever bought gift cards for your friends as presents? It is pretty uncreative, and it shows you know nothing about your friend and what he/she really wants (unless it's the gift card, then my bad). It also restricts the receiver of the gift, or the "volunteer", from using it for other purposes other than what is specified within the conditions of the card.

But what if the company that generated the gift card goes bust? Many people think that the "money in the card" is to be treated literally like money. The only difference is that you can only use it in particular stores. If the store goes bust, can you get your money back? No! Unfortunately in that situation, you would end up as an UNSECURED CREDITOR. All that card meant was that, the "purchaser" of the card lent money to the company (interestingly, they charge a fee for you to lend them money), and they promised you that whoever comes up with the card, they would exchange the goods by releasing the debt they owe you, with some shops putting an expire date to their "loan".

That means, if the company is insolvent, you will only get a few cents off the dollar, if anything. And if you were not the one who purchased the card, under the doctrine of privity of contract, you don't even have standing to sue for the outstanding amount to begin with! Although the person who gifted the card to you MAY do so, there is no obligation other than a moral one that he/she has to do so, especially when the cost of litigation substantially outweighs the amount owed.

So what do you do if you receive such a crap present for your birthday or Christmas? The best way would be to fucking spend it all ASAP, or if you have no self-respect whatsoever, offer to swap the money from a paying customer using the gift card at the counter of the shop where the gift card originated.

Also, if you decide to return a good that is itself faulty (not working when bought, not matching description etc) and not your own fault (not because of change of mind, wrong size etc), NEVER settle for a "store credit" if the manager offers. Always ask for a replacement, or, if you don't want it anymore, ask for a FULL REFUND. You can never go wrong with that.

Knox Grammar School gave me a $100 gift card from Borders bookshop when I was in Year 11. I never used it. And now I shall never have the opportunity to use it, anymore... :-(