after all, it's not their money.
2007-03-30 04:57:27 · 5 answers · asked by stormy 2 in Business & Finance ➔ Other - Business & Finance
Another very important reason is marketing. Companies sometimes use gift cards early on in the business to bring in new customers.
2007-03-30 06:07:17 · answer #1 · answered by jdkilp 7 · 1⤊ 0⤋
It is a legal way for the store to steal your money. They get to use it interest free for 1 year and then they get to keep the principle.
I do not shop at such crooked businesses.
Other stores will charge you outrageous fees to let them keep your money.
If giving a gift card, give one like a Visa or American Express prepaid card. That way the receiver can shop where ever they want and not just at the rip off place.
I also don't like stores where they will not give you the difference in cash. You are forced to find something you don't want to finish off the amount or else let them keep the change.
That is the only problem with Basspro Shop. The nearest one is about 100 miles away. I ended up just giving the card (with the remaining $5.00) to another customer for free instead of letting them have it. The clerk objected saying that the card was not transferrable! I pointed out that the purpose of the gift card was to transfer the funds to someone else.
He still objected saying that it can only be transferred once. Ok, so I used the remaining $5.00 to buy a new gift card and then gave it to the stranger!
I suggested to the clerk that he would do well working for the government! I have not been back to Basspro Shop since!
2007-03-30 12:11:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The business considers the money paid to be "unearned income" and that is essentially an account payable (a debt), but a year is more than a reasonable amount of time to cash the certificate in.
It cannot stay on the books forever, so basically it boils down to use it or lose it. The business has your money either way.
2007-03-30 12:09:37 · answer #3 · answered by James P in phx 1 · 0⤊ 0⤋
Accounting sometimes - more often, "found money theory". You would be surprised to know that 37% of all "gift" cards/certificates/etc. are never used.
2007-03-30 12:05:39 · answer #4 · answered by jbreach 2 · 0⤊ 0⤋
Accounting. They do not want to carry these small amounts as liabilities indefinitely, as it just becomes a bookkeeping headache.
2007-03-30 12:02:01 · answer #5 · answered by open4one 7 · 0⤊ 0⤋