Gift card backlash?

November 29th, 2006 • Posted by Bill Bice • Permalink

Gift cards and gift certificates are the new "in" gift, expected to go from 14% of holiday spending last year to 17% this year. But, thanks in large part to onerous fees imposed by banks for Visa and MasterCard gift cards, a backlash is brewing against gift cards with harsh rules and fees. An article over the weekend in the Wall Street Journal, The Gift That Keeps On Taking, is a good example of the kind of attention this issue is getting.

The media is teaching consumers to be more careful in their selection of gift cards and gift certificates — creating an opportunity for your spa to stand out from the gift card competition.

A gift certificate from your spa doesn't have those onerous upfront fees or ongoing service fees, not too mention being a very personal and thoughtful gift.

As another example, California no longer allows expiration dates on gift certificates from a single retailer, but does for gift cards like those from banks that can be used at multiple retailers. Since you shouldn't be using an expiration date in California anyway, use it to your advantage! Promote that your gift certificates don't have an expiration date.

Consumer's Union has a nice summary of gift card laws that covers most states. To get the full scoop, you'll need to find the specifics from your state Attorney General's office. Consider getting out in front of consumer protection laws on gift certificates, and turn it into a competitive advantage for your spa.


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