Paper makes better gift certificate than plastic

Dear Bruce: In past holidays we’ve made life easier for ourselves and those we give presents to by buying gift certificates. You’ve said that you don’t think that’s such a good idea. They now have plastic cards which can have a dollar amount programmed into them, so all you have to do is to go buy something and get it swiped. Why is that such a terrible idea? – R.W., Dover, Del.

Dear R.W.: Yes, plastic does make things a little easier, but it’s my contention that you are far better off to give cash. While it may seem crass, what difference does it make? A gift certificate is expressed in dollars and, in the case of the plastic, if the card is lost, the recipient will have to come up with a receipt to prove that it was purchased. Some gift certificates depreciate in value after a period of inactivity, and history shows that a significant portion of gift certificates is never redeemed. Money from expired gift certificates, depending on the state, goes into the state’s escheat fund. If a merchant elects to send the money to escheat, you can claim against that and receive your money back after you’ve proven your entitlement. I find it much easier to let my grown children pick out their own gifts. Paper (money) is far better than plastic.

Dear Bruce: I completely agree with you about gift cards. I purchased a $50 plastic gift card from our local mall for $52.50. I should have refused it at the time, but it was a gift, and I was out of options. After about six months I realized that my wife had not used this card. The fine print stated that, after seven months, a $2.50 service charge would be deducted from the value of the card each month thereafter. My wife used part of the card, and the real fun began when she tried to purchase something that cost more than what was left on the card. Even though she told them that she would pay the additional amount that the card balance did not cover, the machine rejected the card. You can’t imagine how long it took to resolve this mess. Needless to say, next Christmas, my grown children will be getting cash. — C.G. Topeka, Kan.

Dear C.G.: Glad to hear that you agree with me.

I don’t understand why people, for the most part, just don’t give cash. To have to pay a premium to give the cash seems absurd. In those few instances where the person giving the gift does not trust the individual to spend it wisely or appropriately, then a gift card may make sense.

Dear Bruce: For the 60-year-old woman who has no use for the $110 gift card from an electronics store that refused to give her cash for the card, perhaps there is a way for her to get full value of the card. If the store has a reasonable return policy, she can purchase any item, then stand in line at the customer service counter with her receipt and get a refund for her unsatisfactory purchase.

Most stores will give a cash refund. Yes, it can be a nuisance, but it works. It’s not the best way to solve her dilemma, but it’s one way to play the store’s game. I recommend she checks the store’s return policy before making her $110 purchase. – M.N., Henderson, Nev.

Dear M.N.: Good idea! It just might work. Perhaps our reader will try it.

Bruce Williams is a national radio talk show host and syndicated columnist.

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