Out of sight...and mind!

Where’s the value?
Administrators of recognition programs want award selections that are a.) cost-conscious and b.) hassle-free. While these criteria are important, the recognition provider and client are working toward the same goal of creating the best value for the company. With that said, here’s what retailers and gift-card companies don’t want you to know.

1. Gift cards expire or gradually lose value with time; e.g., if you don't use your card after a certain period of time, the retailer will automatically deduct money from the card's balance.

2. Millions of consumers only use part of their gift cards, and some never use them at all.

3. You may be charged a monthly maintenance fee if a balance remains on the card longer than six months or a year. Monthly fees can range from $2 to $3. Likewise, if a gift card is lost or stolen, the cardholder may be charged up to $10 to get a replacement. This could decrease the value of a $25 gift card quickly.

4. There are program fees associated with gift cards, which could be as high as $10. Those buying the gift card also may pay a big price. Along with the actual cost of the card, $3 to $11 service charges often are tacked onto the bill. Additional shipping and handling fees can run from $4 to $15.

So what could a typical $25 gift card actually cost? While the recipient received a card value of $25, it could cost upwards of $61*to purchase the card. Also, if the recipient doesn’t utilize the card in a timely manner, say within twelve months, the card may end up only having a value of $6**!

*Equivalent to the value of the card plus a $10 program fee, an $11 service charge, and a $15 S&H fee.) **after a $3/month fee for 6 months.