Gift Certificates--Policies

[Morticia]

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!.

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!

Totally agree that nothing good comes from donating a gc. We put so much behind it - say $170 - compared with a restaurant that donates a free drink.

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

Exactly!

 

[Morticia]

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 #..

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 #.

We've had to tell gc guests that the gc is forfeit if they don't show or cancel after the normal cancellation period.
We've had guests argue with us that they NEVER made a reservation with us before! Much less cancelled!! So how do I know all your info???
It's always something.

 

[ChrisandShelley]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.

 

[Momma Smurf]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.

 

[Momma Smurf]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

There oftentimes isn't a room to trade up to. I'm not messing around hanging onto a few dollars in the hopes they come back sometime.
I've got a couple hanging out there now for $60 or so. I doubt they're coming back so that's money I have to track until we sell. Ugh!

 

[ChrisandShelley]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

I looked at our system, there's really no way to charge tax on the front end anyway. But when I redeem it, the invoice will show the total tax, so I would actually be over charging for tax.

 

[ChrisandShelley]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

There oftentimes isn't a room to trade up to. I'm not messing around hanging onto a few dollars in the hopes they come back sometime.
I've got a couple hanging out there now for $60 or so. I doubt they're coming back so that's money I have to track until we sell. Ugh!
.

Can you just send them a check for it? Maybe with a nice thank you note, or a Merry Christmas, here's $60 for Christmas gifts.

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

There oftentimes isn't a room to trade up to. I'm not messing around hanging onto a few dollars in the hopes they come back sometime.
I've got a couple hanging out there now for $60 or so. I doubt they're coming back so that's money I have to track until we sell. Ugh!
.

Can you just send them a check for it? Maybe with a nice thank you note, or a Merry Christmas, here's $60 for Christmas gifts.
.

Can you just send them a check for it? Maybe with a nice thank you note, or a Merry Christmas, here's $60 for Christmas gifts.

That's an idea. I could email and ask if they'd like the balance and to send back the GC they have. It might also alert them to the fact that they HAVE a balance.
I'm going to go thru and see who I can contact. A lot of them were really gifts and I mailed them to the buyer so I don't have all the info for the recipient.

 

[Morticia]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

I looked at our system, there's really no way to charge tax on the front end anyway. But when I redeem it, the invoice will show the total tax, so I would actually be over charging for tax.
.

I looked at our system, there's really no way to charge tax on the front end anyway. But when I redeem it, the invoice will show the total tax, so I would actually be over charging for tax.

That shouldn't happen. Are you talking about QuickBooks or your rez software? When you enter the GC as payment in your rez system it should not add tax as it is a payment not a purchase. On the purchase side of your rez software this item should be listed as a non taxable transaction if that's where the problem is coming in.

 

[Morticia]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable.

 

[ChrisandShelley]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable..

I have a Word template which I'll save to PDF, then email it to the purchaser after they pay for it online. Then they can give it or snail mail it. Or they can forward it by email to the recipient. It will have a GC ID that matches up in our reservation system, so you can't use it more than once.

 

[Generic]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable..

We don't even send out anything except for an email now. RK has a system where they can put the GC number into the promo code area of the reservation and it will put it right on their account immediately.

 

[Momma Smurf]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable..

We don't even send out anything except for an email now. RK has a system where they can put the GC number into the promo code area of the reservation and it will put it right on their account immediately.
.

Yes, and if you use RK, they automatically keep track of any GC balances! So no accounting worries...or need for refunds.

 

[gillumhouse]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable..

I have a Word template which I'll save to PDF, then email it to the purchaser after they pay for it online. Then they can give it or snail mail it. Or they can forward it by email to the recipient. It will have a GC ID that matches up in our reservation system, so you can't use it more than once.
.

This is where I get creative fun. I create each GC specifically for the receiver and from the giver. I then transfer it to WORD so I can e-mail to the giver for approval and then print on card stock and snail mail to the giver.

 

[ChrisandShelley]

Meant to add that you can put the GC number on the back of whatever you send to the person. (I print out a notecard with the GC info on it and mail it.) On the back are the GC number and my initials.
When we first started the PO's had a printable GC online. You were supposed to call with the payment but it seems a few people just printed out the form and filled it in and never sent in payment. They were all for 'best room' and caused us a lot of grief.
I use a notecard particular to the inn rather than something from an office supply store. Makes it look nice and it's not copyable..

I have a Word template which I'll save to PDF, then email it to the purchaser after they pay for it online. Then they can give it or snail mail it. Or they can forward it by email to the recipient. It will have a GC ID that matches up in our reservation system, so you can't use it more than once.
.

This is where I get creative fun. I create each GC specifically for the receiver and from the giver. I then transfer it to WORD so I can e-mail to the giver for approval and then print on card stock and snail mail to the giver.
.

That is pretty cool. I'll have to refer to my artistic creative better half for that, but that sounds like a cool idea.

 

[ChrisandShelley]

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..

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.
.

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.
.

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.

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!
.

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.
.

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.

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)
.

Holy smokes, I didn't think about that. I guess I need to add a tax to it in our system.
But what if they spend it on something besides lodging? Our lodging tax totals 11.5% but our gift shop items are 9.5%. Jams and jellies are 4.5%. So if they use the gift certificate for something besides lodging, how could you charge tax on the front end?
Do you add a processing fee to cover the cost of credit card processing?
.

You can add a processing fee if you want.
How to do tax - tax occurs when the gc is used, not when it's purchased. So you can figure it out when the guest arrives.
.

Do you let them apply the GC to the State Lodging tax??
.

Do you let them apply the GC to the State Lodging tax??

Yes. If the gc is for $200 and the room is $175 I take the tax out of the gc. I consider the gc as cash. No different than them handing over $200 in crisp hundreds.
And I'd give them the $11 in change. Done deal.
.

Good. We do too...let it cover tax. Our thinking is that the Giver meant it to be a gift and did not want the Recipient to have to dig into their own pockets. No change though, which forces them to trade up if need be. Also Lodging only, can't be used for outside packages unless specifically specified.
.

I looked at our system, there's really no way to charge tax on the front end anyway. But when I redeem it, the invoice will show the total tax, so I would actually be over charging for tax.
.

I looked at our system, there's really no way to charge tax on the front end anyway. But when I redeem it, the invoice will show the total tax, so I would actually be over charging for tax.

That shouldn't happen. Are you talking about QuickBooks or your rez software? When you enter the GC as payment in your rez system it should not add tax as it is a payment not a purchase. On the purchase side of your rez software this item should be listed as a non taxable transaction if that's where the problem is coming in.
.

In our reservation system. In the POS part of the system, you can add taxes and fees in the configuration, but there isn't a way to add tax. So it is a non-taxable transaction on the front end. When it's redeemed, the entire invoice shows the tax owed for the stay and POS items.
I was panicking when JoeyB was talking about charging tax on the front end. But I've got my head wrapped around it now.
BTW, I use WAVE online bookkeeping system. Cloud based, so I can use it anywhere I get internet. Free and awesome.