Why do gift certificates have an expiry date?

[gsdx]

I mean, the store has already been paid the cash for merchandise. If they expire the certificates and you can't buy something with the money already paid, aren't they like breaching the contract or something?

Canada is now passing legislation (I believe) which will prevent gift certificates from including an expiry date.

What are your thoughts?

 

[yankee]

I agree, as long as the store is in buisness it should be valid.

 

[1gayguy]

Here in New Hampshire, a traditional gift certificate can't have an expiration date, howerever a gift card with major credit card logo on it can and they can also charge fees that deminish the value. So here you still need to read the fine print.

 

[slobone]

Actually, the longer you hold on to the gift certificate, the more money they make on interest. You'd think they'd encourage you not to cash it in.

 

[Zeremonie]

In the United States, I'm pretty sure that varies from state to state by state law. I'm sure, that in California, a gift certificate can never expire. California has strong laws right on point. I'm pretty sure that in Washington (the State) a gift certificate can't expire either.

 

[KingRuby]

"Canada is now passing legislation (I believe) which will prevent gift certificates from including an expiry date."


I believe that Howard Hampton, Leader of the Ontario NDP has raised this issue in Queen's Park and is preparing to introduce legislation on the matter.
If so, he will need support of the Fiberals for it to pass and it would only affect Ontario.

Until that happens, never buy from greedy bastards that put expiry dates on gift certificates. Better yet, crass as it sounds, hand over the cash and let the recipients decide where they want to spent it if you don't have the time (or are to lazy) to shop for them.

 

[pjlikesporn]

Keep in mind that there are two types of gift certificates. The first is the kind where you exchange cash for the certificate, and the second is where the certificate is given out complimentarily, solely as a promotion. Generally, I would think that the first category should never expire whereas it is entirely reasonable for the second to expire. That is, part of the promotion is that you use the freebie within the allotted time period.

I agree with Zeremonie the moderatorin, who said that the gift certificate law in the US varies from state to state.

 

[gsdx]

I believe that Howard Hampton, Leader of the Ontario NDP has raised this issue in Queen's Park and is preparing to introduce legislation on the matter.
If so, he will need support of the Fiberals for it to pass and it would only affect Ontario.

Thanks. I heard it as an news headline and didn't catch the whole story.

Keep in mind that there are two types of gift certificates. The first is the kind where you exchange cash for the certificate, and the second is where the certificate is given out complimentarily, solely as a promotion.

I hadn't thought of the 'promotional' gift certificates, but I think they could be categorized and treated as a coupon. Expiry dates on those would not be out of line.

 

[treanir]

Why gift certificates have an expiry date? Simple: it's part of the profit. If a person forgets to cash a $40 gift certificate, where do you think that money goes?

 

[NameTaken]

Probably because they'd make more money that way (if you don't end up spending it before the expiry date then that's just free money to them).

 

[Orlandude]

Keep in mind that there are two types of gift certificates. The first is the kind where you exchange cash for the certificate, and the second is where the certificate is given out complimentarily, solely as a promotion. Generally, I would think that the first category should never expire whereas it is entirely reasonable for the second to expire. That is, part of the promotion is that you use the freebie within the allotted time period.

I agree with Zeremonie the moderatorin, who said that the gift certificate law in the US varies from state to state.

That is totally true that there are two types of certificates. Technically, there is a "Gift" Certificate and then there is a "Voucher" or "Merchandise Cerificate". There is a diference. A voucher CAN have an expiration date on it. I received one last Christmas that was a $100 voucher for a local restaurant. It was good for one full year. I guess the restaurant figured that if I didn't use it in the course of a year that I would never use it. A Gift Certificate is usually governed by State law, reason being that there could be a tax implication. It does depend on your state.

 

[_AJ_]

i went to check when they expire here in aus but i only got to the first page on kmarts website
damn underwear advertisement

 

[Andreus]

most GC's are electronic and the crdit card companies charge fees to maintain the cards. that means that the company vouches for the fact that the cards have cash available for the ammounts on them. they dont want liquid assets tied up.

it makes sense to me. I have never used a Gift certificate older than a few months.

 

[Orlandude]

thats just another way for them to make money out of the ppl... like when they advertise something is $100 off, but they dont tell u right away that $80 out of the $100 is a mail-in rebate, that sometimes u forget to mail it in, or dont have the time to do it

That's a whole other pet peeve of mine. Rebates! I hate them and refuse to buy something where I have to mail them in and wait 3 or 4 months for a $20 check. This "brainstorm" came from the retailers themselves. It used to be that the retailers got the rebates and passed the savings on to the consumer. In this age of greed that we live in, that got thrown out because the retailers don't want to wait for their money. Better that YOU wait for the money, thus, the big deal about rebates. And yes, the manufactureres are hoping against hope that you will forget to mail it in or decide you can't be bothered or, by the time you think of it, the rebate is expired. Watch out too for rebates that are about to expire. The store won't tell you that. You have to read the fine print. I once bought some software that offered a $30 rebate only to find that the rebate expired in 3 days. I had no time to get it in unless I sent it overnight at a cost of $10.

If I'm buying something and the salesperson hands me the rebate stuff, I tell them I want a discount instead. If they refuse, NO SALE. I'd rather do without it or until the price comes down, which it eventually will.