Okay, this is kind of a current event (at least in my mind). It also fits under the category of "Organized Crime", IMO.
Let me just start up front by saying..."Do NOT buy Gift Cards!". Do not buy them for others, and do not buy them for family members, and do not buy them even for yourself. Sooner or later...sooner or later...you will get burned, and the amount on the Gift Card is directly proportional to how badly you will get burned, and how quickly. Additionally, just know; the entire empire of the Gift Card charade stacks the deck against the person who legitimately buys one of these cards, right from the get go. This is "Organized Crime" of the highest order! Here's how it works...
You (and your lazy ass, mine included...until I learned this lesson) buy a Gift Card for someone, they go to use it, and are unable to use the card for one reason or another. THEN, the person who is in possession of the card, or the person who bought it try to investigate the issue to get it straightened out. From right at this point, the odds are completely stacked against YOU! In fact, the whole business model behind Gift Cards is fraudulent and should be outlawed. During the "get it straightened out" phase, you can and should expect the following:
1. The entire system from top to bottom is designed to blow you off and defraud you. Customer support is non-existent, with the primary objective of CS companies being "Use any, and every, excuse imaginable to make you go away in less than 60 seconds. To give you the run-around until you get worn down to the point that "fixing" the problem is not worth the effort (this is by design). And lastly, back to the 1st point...BLOW YOU OFF!"
2. The legitimate money dumped into Gift Cards is FREE MONEY to the people selling these cards (who are NOT the same name as the retailer on the card, BTW), to the people administering transactions on these cards, AND to the entire "empire" built solely around human laziness! Not to mention, to the retailer whose name is on the card! Translated: "There IS no Rule #2; so See Rule #1".
"But, but, WAIT!...I am NOT lazy! (you say) I was just trying to do something nice for someone...AND, I didn't know what to buy them, but I knew they shopped at this retailer quite a bit, so I thought it would be nice to buy them a Gift Card from that retailer so they could buy something they wanted and needed." Right? Well, you know what? You might think you are unique in this thought, but that EXACT statement accounts for well above 90% of all Gift Card purchases. Look, your heart may have been in the right place, and your wallet had no choice in the matter, but the reality is...Gift Cards are a PREDATORY business "EMPIRE" built on EXACTLY this mentality! It is so criminal it just makes me want to scream!
This is actually quite a bit bigger subject than I could possibly cover in a simple post here, and I have done considerable research into this 'syndicate', but let's cover a few highlights and some of the underpinnings of how this whole scam works.
1. First, there are millions of just straight-up criminals who have figured out countless ways to set up scams using Gift Cards. The industry selling these cards knows this, and they lick their chops just thinking about it. Why? Because this is their first line of defense in blowing you, the legitimate customer, off. Do not be confused here; these are two different groups of people. The first are legitimate criminals and scammers, and the second are the companies involved in the sale of these cards. They are not related, but they are 'symbiotic' (i.e. one cannot survive without the other).
2. There are different types of Gift Cards. In the world of Gift Cards there are three (3) basic types. There are bank Gift Cards. These get used (in theory) just like any other VISA, MasterCard, or AmEx; they can be used like any other bankcard to buy virtually any product from a retailer who accepts that bankcard. Then there are retailer specific Gift Cards. These can be purchased virtually anywhere (and 'where' is key here), but can only be used at the retailer or business printed on the card. An Olive Garden card can only be used at Olive Garden, not at Home Depot. Ironically, Olive Garden itself does not have anything to do with one of these cards up until someone wishes to purchase something from Olive Garden; only then does Olive Garden become part of the picture. Prior to this point only banks and clearing houses and scummy businesses are involved. When you buy an Olive Garden Gift Card, or Home Depot, or whomever, card from Kroger (or grocery store), Olive Garden doesn't sell jack shit. Only these companies do, not Olive Garden. Lastly, (as noted) 'where' you buy one of these cards is important. Cards bought directly from the establishment are slightly different from cards purchased at some 3rd party (i.e. Grocery store, in my previous example). I can't stress enough that the name on the card is involved very little, if at all, in ANY transactions up until the card is attempted to be redeemed (at the business named on the card). This is a CRITICALLY important detail, and one which is central to the whole reason why Gift Cards are a complete scam. It should also give you some insight right up front about why the actual retailers named on the cards have little interest in helping your resolve an issue associated with one of these cards (because so far they've had nothing to do with the card). It should also provide you with a pretty good clue into the setup for the "run-around" you are about to get into when attempting to resolve an issue with one of these cards.
3. The vendor who is named on the card, the business selling the card, the business administering the card, and the clearing houses involved in processing ANY transaction associated with these cards is acutely aware of Items #1 and #2 above! They KNOW this, AND they use it to their advantage, none more than the businesses marketing these cards!
It is said that upwards of 40% of all gift cards are forgotten about by the recipient before they get used. (Yay! Free money for the guy marketing these cards). This number jumps up to over 70% when a Gift Card gets partially used (i.e. the remaining balance is usually forgotten about and/or lost). (Yay! More free money). Overall security on Gift Cards is relatively low meaning scams are likely and easy in this sector. Using one has to be easy, otherwise the recipient won't be able to use it (and they KNOW this, hence the 1st line of defense to blow you off..."There's LOT's of scams out there, so we can't help you. Go away!" Doesn't matter if you call them, go in in person, whatever; you'll get the same response..."Go away!" Anyway, it's easy to see from just these two things why this is an attractive business segment. It's Free Money...to someone...someone BUT you, the recipient.
So far, I've only talked only about the card portion of this whole mess. Then, there's the whole psychological side of this. And sadly, this is the side which makes this business of Gift Cards viable at all. When a person buys one of these cards for someone else, they immediately get the 'feel good' emotion of having done something for their friend or loved one. What the recipient actually buys with this card is irrelevant, and most buyers don't even care about this; it's simply the act of buying it which satisfies their 'feel good' emotion. Said a different way; now they don't have to feel "guilty" for not buying someone a Birthday present or wedding gift. So, the giver is all set, relieved of any guilt, or deadlines; life can move on. Well, that is until someone can't use this F'ing card. Then, it's run-around City until you give up. That's the whole business model; to RIP. YOU. OFF! The Gift Card business has their money, the buyer feels good, and the recipient gets the SHAFT! That's the whole idea.
And then, to force the BUYER, not the recipient, into having to resolve a problem with one of these cards is the most criminal thing of all. And they KNOW this too (they know all these things); in fact, they PREY on this very concept (that you'll say it's not worth the hassle and just give up).
GAH!!!
Let me just start up front by saying..."Do NOT buy Gift Cards!". Do not buy them for others, and do not buy them for family members, and do not buy them even for yourself. Sooner or later...sooner or later...you will get burned, and the amount on the Gift Card is directly proportional to how badly you will get burned, and how quickly. Additionally, just know; the entire empire of the Gift Card charade stacks the deck against the person who legitimately buys one of these cards, right from the get go. This is "Organized Crime" of the highest order! Here's how it works...
You (and your lazy ass, mine included...until I learned this lesson) buy a Gift Card for someone, they go to use it, and are unable to use the card for one reason or another. THEN, the person who is in possession of the card, or the person who bought it try to investigate the issue to get it straightened out. From right at this point, the odds are completely stacked against YOU! In fact, the whole business model behind Gift Cards is fraudulent and should be outlawed. During the "get it straightened out" phase, you can and should expect the following:
1. The entire system from top to bottom is designed to blow you off and defraud you. Customer support is non-existent, with the primary objective of CS companies being "Use any, and every, excuse imaginable to make you go away in less than 60 seconds. To give you the run-around until you get worn down to the point that "fixing" the problem is not worth the effort (this is by design). And lastly, back to the 1st point...BLOW YOU OFF!"
2. The legitimate money dumped into Gift Cards is FREE MONEY to the people selling these cards (who are NOT the same name as the retailer on the card, BTW), to the people administering transactions on these cards, AND to the entire "empire" built solely around human laziness! Not to mention, to the retailer whose name is on the card! Translated: "There IS no Rule #2; so See Rule #1".
"But, but, WAIT!...I am NOT lazy! (you say) I was just trying to do something nice for someone...AND, I didn't know what to buy them, but I knew they shopped at this retailer quite a bit, so I thought it would be nice to buy them a Gift Card from that retailer so they could buy something they wanted and needed." Right? Well, you know what? You might think you are unique in this thought, but that EXACT statement accounts for well above 90% of all Gift Card purchases. Look, your heart may have been in the right place, and your wallet had no choice in the matter, but the reality is...Gift Cards are a PREDATORY business "EMPIRE" built on EXACTLY this mentality! It is so criminal it just makes me want to scream!
This is actually quite a bit bigger subject than I could possibly cover in a simple post here, and I have done considerable research into this 'syndicate', but let's cover a few highlights and some of the underpinnings of how this whole scam works.
1. First, there are millions of just straight-up criminals who have figured out countless ways to set up scams using Gift Cards. The industry selling these cards knows this, and they lick their chops just thinking about it. Why? Because this is their first line of defense in blowing you, the legitimate customer, off. Do not be confused here; these are two different groups of people. The first are legitimate criminals and scammers, and the second are the companies involved in the sale of these cards. They are not related, but they are 'symbiotic' (i.e. one cannot survive without the other).
2. There are different types of Gift Cards. In the world of Gift Cards there are three (3) basic types. There are bank Gift Cards. These get used (in theory) just like any other VISA, MasterCard, or AmEx; they can be used like any other bankcard to buy virtually any product from a retailer who accepts that bankcard. Then there are retailer specific Gift Cards. These can be purchased virtually anywhere (and 'where' is key here), but can only be used at the retailer or business printed on the card. An Olive Garden card can only be used at Olive Garden, not at Home Depot. Ironically, Olive Garden itself does not have anything to do with one of these cards up until someone wishes to purchase something from Olive Garden; only then does Olive Garden become part of the picture. Prior to this point only banks and clearing houses and scummy businesses are involved. When you buy an Olive Garden Gift Card, or Home Depot, or whomever, card from Kroger (or grocery store), Olive Garden doesn't sell jack shit. Only these companies do, not Olive Garden. Lastly, (as noted) 'where' you buy one of these cards is important. Cards bought directly from the establishment are slightly different from cards purchased at some 3rd party (i.e. Grocery store, in my previous example). I can't stress enough that the name on the card is involved very little, if at all, in ANY transactions up until the card is attempted to be redeemed (at the business named on the card). This is a CRITICALLY important detail, and one which is central to the whole reason why Gift Cards are a complete scam. It should also give you some insight right up front about why the actual retailers named on the cards have little interest in helping your resolve an issue associated with one of these cards (because so far they've had nothing to do with the card). It should also provide you with a pretty good clue into the setup for the "run-around" you are about to get into when attempting to resolve an issue with one of these cards.
3. The vendor who is named on the card, the business selling the card, the business administering the card, and the clearing houses involved in processing ANY transaction associated with these cards is acutely aware of Items #1 and #2 above! They KNOW this, AND they use it to their advantage, none more than the businesses marketing these cards!
It is said that upwards of 40% of all gift cards are forgotten about by the recipient before they get used. (Yay! Free money for the guy marketing these cards). This number jumps up to over 70% when a Gift Card gets partially used (i.e. the remaining balance is usually forgotten about and/or lost). (Yay! More free money). Overall security on Gift Cards is relatively low meaning scams are likely and easy in this sector. Using one has to be easy, otherwise the recipient won't be able to use it (and they KNOW this, hence the 1st line of defense to blow you off..."There's LOT's of scams out there, so we can't help you. Go away!" Doesn't matter if you call them, go in in person, whatever; you'll get the same response..."Go away!" Anyway, it's easy to see from just these two things why this is an attractive business segment. It's Free Money...to someone...someone BUT you, the recipient.
So far, I've only talked only about the card portion of this whole mess. Then, there's the whole psychological side of this. And sadly, this is the side which makes this business of Gift Cards viable at all. When a person buys one of these cards for someone else, they immediately get the 'feel good' emotion of having done something for their friend or loved one. What the recipient actually buys with this card is irrelevant, and most buyers don't even care about this; it's simply the act of buying it which satisfies their 'feel good' emotion. Said a different way; now they don't have to feel "guilty" for not buying someone a Birthday present or wedding gift. So, the giver is all set, relieved of any guilt, or deadlines; life can move on. Well, that is until someone can't use this F'ing card. Then, it's run-around City until you give up. That's the whole business model; to RIP. YOU. OFF! The Gift Card business has their money, the buyer feels good, and the recipient gets the SHAFT! That's the whole idea.
And then, to force the BUYER, not the recipient, into having to resolve a problem with one of these cards is the most criminal thing of all. And they KNOW this too (they know all these things); in fact, they PREY on this very concept (that you'll say it's not worth the hassle and just give up).
GAH!!!
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