Gift Certificates--Policies

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ChrisandShelley

ChrisandShelley

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Our booking engine software has just come out with the ability to sell and track gift certificates (yay!). I am trying to come up with terms and conditions for use. I've got the expiration date (1 year from purchase) but I'm coming up blank.
What are some of your policies regarding purchase and use of gift certificates?
Thanks.
C
 
Firstly, make sure your state does not have rules about gc expiration. They don't expire here.
Secondly, they're considered cash so what terms and conditions do you need?
You need T&C when they're donations, not when they're gifts.
 
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term.
 
Generic said:
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term..
Click to expand...
Ok, there's something to consider - what to do with the balance.
We do GC's for dollar amounts now. Too many outstanding for a particular room that is now $25 more per night.
We'll refund anything under $50 because the guest isn't likely to return just because they have $50 on the line. (Unlike Gomez who must go shopping when he has a. $10 coupon at Staples.) And that $50 sits on the books instead. (State requires we turn in any monies from over 5 years out and then fight to get that back (discounted) when the gc shows up.)
I will ask if they'd like cash or a gc for dinner. Some guests like the idea of what seems like a 2 for 1 deal.
 
I used to do room donations but now, as this morning 4 countries of coffee went out the door as a donation. It does not screw up my reservations to have someone use a donation that will now mess up a multi-night reservation. IF you do donation print on the bottom EXPIRES XX-XX-XX (6 months to a year) NO CASH VALUE
AND be aware there will be someone who "just found this when I was cleaning out a drawer, can I still use it?" Even if it expired a year ago, they expect to have you honor it. My paid for Certificates do not expire either. I have had some come home 2 or 3 years later.
I had one package purchased for parents who died without using it. This was probably about 5 years later and the daughter who purchased it e-mailed asking if it was still valid, which it was. However, the original included a dinner which we no longer did and I explained that. She was OK with just getting the rest of it. And she was a great guest.
 
gillumhouse said:
I used to do room donations but now, as this morning 4 countries of coffee went out the door as a donation. It does not screw up my reservations to have someone use a donation that will now mess up a multi-night reservation. IF you do donation print on the bottom EXPIRES XX-XX-XX (6 months to a year) NO CASH VALUE
AND be aware there will be someone who "just found this when I was cleaning out a drawer, can I still use it?" Even if it expired a year ago, they expect to have you honor it. My paid for Certificates do not expire either. I have had some come home 2 or 3 years later.
I had one package purchased for parents who died without using it. This was probably about 5 years later and the daughter who purchased it e-mailed asking if it was still valid, which it was. However, the original included a dinner which we no longer did and I explained that. She was OK with just getting the rest of it. And she was a great guest..
Click to expand...
This is getting off track but we have friends who are new to the biz. They had someone demand the innkeeper pay them for the donated gift card because they couldn't use it the exact date they wanted. She was too new to see the error in that and paid them for the gc.
So yes, "no cash value" is needed.
 
Morticia said:
Generic said:
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term..
Click to expand...
Ok, there's something to consider - what to do with the balance.
We do GC's for dollar amounts now. Too many outstanding for a particular room that is now $25 more per night.
We'll refund anything under $50 because the guest isn't likely to return just because they have $50 on the line. (Unlike Gomez who must go shopping when he has a. $10 coupon at Staples.) And that $50 sits on the books instead. (State requires we turn in any monies from over 5 years out and then fight to get that back (discounted) when the gc shows up.)
I will ask if they'd like cash or a gc for dinner. Some guests like the idea of what seems like a 2 for 1 deal.
.
Click to expand...
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
 
Our state requires GC's to be good for (at least) 5 years.
Our GC's are by dollar amount, not certain room as I had the same issue as Mort.
No refunds for cash. This is meant for the recipient, not the purchaser. I will refund if to the purchaser within 30 days. The GC can be transferred as long as I know this at time of booking. These are my policies but not all is written on the GC itself.
I no longer do GC for donations. If you want to do so use the word voucher or coupon and not GC as some states will adhere to the GC laws if you do. Place an expiry date not to exceed a year. no cash value
 
Morticia said:
Firstly, make sure your state does not have rules about gc expiration. They don't expire here.
Secondly, they're considered cash so what terms and conditions do you need?
You need T&C when they're donations, not when they're gifts..
Click to expand...
Arkansas law says that a gift card or certificate cannot expire within 5 years. So I guess I have to reset my limit (which was 1 year) or leave it and just take one if we run across it?
 
ChrisandShelley said:
Morticia said:
Generic said:
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term..
Click to expand...
Ok, there's something to consider - what to do with the balance.
We do GC's for dollar amounts now. Too many outstanding for a particular room that is now $25 more per night.
We'll refund anything under $50 because the guest isn't likely to return just because they have $50 on the line. (Unlike Gomez who must go shopping when he has a. $10 coupon at Staples.) And that $50 sits on the books instead. (State requires we turn in any monies from over 5 years out and then fight to get that back (discounted) when the gc shows up.)
I will ask if they'd like cash or a gc for dinner. Some guests like the idea of what seems like a 2 for 1 deal.
.
Click to expand...
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
.
Click to expand...
ChrisandShelley said:
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
Click to expand...
Think about the accounting side of that. Every year you have to track this. If you change reservation systems, you have to be sure the amounts transfer over.
Set a limit in your head for the refund amount and get them off the books.
Then there are no disagreements with the guest about what is and isn't remaining. You collect the gc (physical) and give a small refund.
I know lots of people will say the balance will draw the guest back, but sometimes it's one more niggling weight hanging over their and your heads.
Make a clean break!
 
ChrisandShelley said:
Morticia said:
Firstly, make sure your state does not have rules about gc expiration. They don't expire here.
Secondly, they're considered cash so what terms and conditions do you need?
You need T&C when they're donations, not when they're gifts..
Click to expand...
Arkansas law says that a gift card or certificate cannot expire within 5 years. So I guess I have to reset my limit (which was 1 year) or leave it and just take one if we run across it?
.
Click to expand...
ChrisandShelley said:
Arkansas law says that a gift card or certificate cannot expire within 5 years. So I guess I have to reset my limit (which was 1 year) or leave it and just take one if we run across it?
Click to expand...
The PO's here put a one year expiry date to push guests to use them. We were still honoring them 2-3 years down the road.
You don't want someone giving you a hard time because they know the rules. "Hey, you can't say this expires in one year! You're a cheater!" Because there's that person out there, you know there is.
 
Copperhead said:
Our state requires GC's to be good for (at least) 5 years.
Our GC's are by dollar amount, not certain room as I had the same issue as Mort.
No refunds for cash. This is meant for the recipient, not the purchaser. I will refund if to the purchaser within 30 days. The GC can be transferred as long as I know this at time of booking. These are my policies but not all is written on the GC itself.
I no longer do GC for donations. If you want to do so use the word voucher or coupon and not GC as some states will adhere to the GC laws if you do. Place an expiry date not to exceed a year. no cash value.
Click to expand...
I've had the recipient ask for cash. I explain I will refund the card on file, after the gc is returned. The recipient can contact the giver.
I've refunded maybe twice in 10 years.
 
Morticia said:
ChrisandShelley said:
Morticia said:
Generic said:
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term..
Click to expand...
Ok, there's something to consider - what to do with the balance.
We do GC's for dollar amounts now. Too many outstanding for a particular room that is now $25 more per night.
We'll refund anything under $50 because the guest isn't likely to return just because they have $50 on the line. (Unlike Gomez who must go shopping when he has a. $10 coupon at Staples.) And that $50 sits on the books instead. (State requires we turn in any monies from over 5 years out and then fight to get that back (discounted) when the gc shows up.)
I will ask if they'd like cash or a gc for dinner. Some guests like the idea of what seems like a 2 for 1 deal.
.
Click to expand...
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
.
Click to expand...
ChrisandShelley said:
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
Click to expand...
Think about the accounting side of that. Every year you have to track this. If you change reservation systems, you have to be sure the amounts transfer over.
Set a limit in your head for the refund amount and get them off the books.
Then there are no disagreements with the guest about what is and isn't remaining. You collect the gc (physical) and give a small refund.
I know lots of people will say the balance will draw the guest back, but sometimes it's one more niggling weight hanging over their and your heads.
Make a clean break!
.
Click to expand...
I see your point. That probably is easier than keeping a balance. Maybe exchange for a gift shop item at a discount or something? But giving a refund is not out of the question, we've gotten paid for it, so it all comes out the same in the long run.
 
Morticia said:
ChrisandShelley said:
Morticia said:
Firstly, make sure your state does not have rules about gc expiration. They don't expire here.
Secondly, they're considered cash so what terms and conditions do you need?
You need T&C when they're donations, not when they're gifts..
Click to expand...
Arkansas law says that a gift card or certificate cannot expire within 5 years. So I guess I have to reset my limit (which was 1 year) or leave it and just take one if we run across it?
.
Click to expand...
ChrisandShelley said:
Arkansas law says that a gift card or certificate cannot expire within 5 years. So I guess I have to reset my limit (which was 1 year) or leave it and just take one if we run across it?
Click to expand...
The PO's here put a one year expiry date to push guests to use them. We were still honoring them 2-3 years down the road.
You don't want someone giving you a hard time because they know the rules. "Hey, you can't say this expires in one year! You're a cheater!" Because there's that person out there, you know there is.
.
Click to expand...
Another good point. Fair enough, I'll change it in our system.
Thanks for bringing that up, I would never have thought about regulations.
Have I said that I love this site? Well, I do.
regular_smile.gif

Did some more reading and research, and Arkansas has a 2 year expiration, not 5.
 
Morticia said:
Copperhead said:
Our state requires GC's to be good for (at least) 5 years.
Our GC's are by dollar amount, not certain room as I had the same issue as Mort.
No refunds for cash. This is meant for the recipient, not the purchaser. I will refund if to the purchaser within 30 days. The GC can be transferred as long as I know this at time of booking. These are my policies but not all is written on the GC itself.
I no longer do GC for donations. If you want to do so use the word voucher or coupon and not GC as some states will adhere to the GC laws if you do. Place an expiry date not to exceed a year. no cash value.
Click to expand...
I've had the recipient ask for cash. I explain I will refund the card on file, after the gc is returned. The recipient can contact the giver.
I've refunded maybe twice in 10 years.
.
Click to expand...
Morticia said:
I've had the recipient ask for cash. I explain I will refund the card on file, after the gc is returned. The recipient can contact the giver.
I've refunded maybe twice in 10 years.
Click to expand...
This is because no one wants to give back a gift.
 
Is it for a dollar amount?
I would add same reservation and cancellation policies apply to gift certificates. We have had in the past one person change the dates and rebook on a GC multiple times. Also GC's have no skin in the game, so they wont abide by the policies like those who gave you their credit card #.
 
ChrisandShelley said:
Morticia said:
ChrisandShelley said:
Morticia said:
Generic said:
Around here a gift certificate cannot legally expire. Any amounts under $5 are fully refundable in cash. I have no other terms and conditions. In fact, if it hasn't been used in a year, we have offered to exchange it for other gift certificates.
Here's a kicker for you... I will even accept certain other gift certificates as payment as long as it's something that I will use. And in one case when a guest moved far away, we exchanged their gift certificate for a third-party gift certificate, so they could use it elsewhere. I don't like to keep them on the books long term..
Click to expand...
Ok, there's something to consider - what to do with the balance.
We do GC's for dollar amounts now. Too many outstanding for a particular room that is now $25 more per night.
We'll refund anything under $50 because the guest isn't likely to return just because they have $50 on the line. (Unlike Gomez who must go shopping when he has a. $10 coupon at Staples.) And that $50 sits on the books instead. (State requires we turn in any monies from over 5 years out and then fight to get that back (discounted) when the gc shows up.)
I will ask if they'd like cash or a gc for dinner. Some guests like the idea of what seems like a 2 for 1 deal.
.
Click to expand...
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
.
Click to expand...
ChrisandShelley said:
The cool thing about this being tracked in our reservation system is that they can redeem it partially. The system will keep it in their Personal folder until they return to use the rest of it.
Click to expand...
Think about the accounting side of that. Every year you have to track this. If you change reservation systems, you have to be sure the amounts transfer over.
Set a limit in your head for the refund amount and get them off the books.
Then there are no disagreements with the guest about what is and isn't remaining. You collect the gc (physical) and give a small refund.
I know lots of people will say the balance will draw the guest back, but sometimes it's one more niggling weight hanging over their and your heads.
Make a clean break!
.
Click to expand...
I see your point. That probably is easier than keeping a balance. Maybe exchange for a gift shop item at a discount or something? But giving a refund is not out of the question, we've gotten paid for it, so it all comes out the same in the long run.
.
Click to expand...
ChrisandShelley said:
I see your point. That probably is easier than keeping a balance. Maybe exchange for a gift shop item at a discount or something? But giving a refund is not out of the question, we've gotten paid for it, so it all comes out the same in the long run.
Click to expand...
I just spoke to a lady who wanted one for inlaws for Christmas, I mentioned if it is over the amount then we will add fresh bouquet of flowers etc, or they can keep the balance and use another time.
Remember you have to pay tax on it when sold. As it is revenue in that month.
NO CASH VALUE - NO REFUNDS
(Fully transferable)
 
honestly, i would not even bothering offering GC. we very seldom sold them and when we did we usually had some sort of problem. stopped giving GC to causes as well. got us nothing!
 

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