Visa gift cards: Complete crap.

[marko138]

Originally Posted by Homeslice

They are ALREADY making money off merchant charges when you use them. Why do they need more? Ghey IMO.

Because this is AMERICA.

[Rider]

Originally Posted by shmike

That's the point, most people don't know.

Many of these gif cards start charging a fee after so many months.

You don't "pay it", it reduces your available balance.

Example:
You buy your son a $50 gift card for $53.50. He loses it. Finds it a year and a half later and goes to buy a $50 game.

Declined.

He has $20 left of your $53.50 because he was paying $2.50 per month after 6 months without knowing it.

Ok gotcha. My son doesn't let the card sit. That fool can flat spend money.

[goof2]

Originally Posted by Homeslice

They are ALREADY making money off merchant charges when you use them. Why do they need more? Ghey IMO.

This is all speculation, but my guess is the fee to purchase the card goes to the retailer who sells it. Unlike the Starbucks and Shell cards which can only be used within those chains there is no guarantee that the retailer who sells the Amex card will see any of that money. The retailer needs to get a fee as an incentive to sell the cards. Amex makes their money from someone using the card. The retailer makes money from someone buying the card.

[Homeslice]

Originally Posted by goof2

This is all speculation, but my guess is the fee to purchase the card goes to the retailer who sells it. Unlike the Starbucks and Shell cards which can only be used within those chains there is no guarantee that the retailer who sells the Amex card will see any of that money. The retailer needs to get a fee as an incentive to sell the cards. Amex makes their money from someone using the card. The retailer makes money from someone buying the card.

Shell and Starbucks go up to Kroger or Safeway and say "I'll sell you a thousand 50 dollar cards for $48,000 instead of $50,000."

This way the grocery store makes their margin.

I'm not sure why Visa and Mastercard couldn't do that, instead of making the consumer pay the premium.

[goof2]

Originally Posted by Homeslice

Shell and Starbucks go up to Kroger or Safeway and say "I'll sell you a thousand 50 dollar cards for $48,000 instead of $50,000."

This way the grocery store makes their margin.

I'm not sure why Visa and Mastercard couldn't do that, instead of making the consumer pay the premium.

Probably because they can. An Amex gift card has more utility than a Shell or Starbucks gift card.

[z06boy]

This reminds me...I have a $250 Gift Card that I haven't used...got it at Xmas. I called and the value is still $250 but it's only been going on 5 months.

One reason I haven't used it is that for one...you can't get much in this store for $250...kind of expensive imho. It's still free $$ for me though so I'd better give them a visit. Cool stuff though...

www.orvis.com

[z06boy]

Humm just checked www.plasticjungle.com and it says that they will send me a check for $175.00 for my $250.00 card. Sounds like a bad deal on the surface but hey...it was a gift from a boss that is no longer here...

[Homeslice]

That is why he should have picked a company everyone uses, like Shell or Target, or even Starbucks. Even if you don't drink coffee, you can buy a sandwich there.

[marko138]

Originally Posted by Homeslice

That is why when you give gift cards to someone, you pick a company everyone uses, like Shell or Target, or even Starbucks. Even if you don't drink coffee, you can buy a sandwich there.

What is your obsession with Shell, Target, and Starbucks???

[Homeslice]

Originally Posted by marko138

What is your obsession with Shell, Target, and Starbucks???

Just taking names off the top of my head from whenever I see those cards in the grocery store

I have also given iTunes cards to someone before. Of course this was someone who I knew was already using iTunes a lot.

Point is, why pay a bunch of fees to Visa/MC, when you could give some other type of card that doesn't have any fees?