Appletax
Well-Known Member
- Reaction score
- 348
- Location
- U.P. of Michigan
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I'll also add that 1999 called and wants its old marketing back. No one does gift certificates anymore. They do gift CARDS. Especially coming from a business dealing in high tech. A hand-filled-out certificate just looks lame.
And in most states you will be forced to hold that money in escrow forever. You can earn interest on it but you can never touch the money except to cash out to the people that show up with the cards. Most of which have likely been tossed out. Chain stores have a larger volume so they can manage it better.I do gift cards, and in saying that, I mean using Square's digital gift card service, for free! And yes, I've had several people purchase them but ironically, no one has cashed them in at my shop. Gift card sales money is held in a separate bank account so I can keep track of it easier.
And in most states you will be forced to hold that money in escrow forever.
I do not sell gift certificates. I give them away. I like donating them as a raffle prize to benefits.
That is a coupon and legally different than a gift certificate as it has no cash value and you can set an expiration date on it. With a Gift Certificate, you are holding someone else's funds for future use. Which makes you a bank and requires you to do certain things to protect those funds. All I can say to britechguy is don't get caught not properly keeping tabs on it. States are cracking down on it and there have also been money laundering schemes that have even gotten federal attention. It is a variation of various old-school traveler's cheque schemes.I do not sell gift certificates. I give them away. I like donating them as a raffle prize to benefits.
All I can say to britechguy is don't get caught not properly keeping tabs on it.
This is what we do here: we give away coupons for $50 or $100 off of their purchase with no change given. In my computer shop, we provide service but also sell refurbs and a handful of products. I would also allow someone to apply it to their network install or monthly labor bill should they be the recipient of the card.That is a coupon and legally different than a gift certificate as it has no cash value and you can set an expiration date on it. With a Gift Certificate, you are holding someone else's funds for future use. Which makes you a bank and requires you to do certain things to protect those funds. All I can say to britechguy is don't get caught not properly keeping tabs on it. States are cracking down on it and there have also been money laundering schemes that have even gotten federal attention. It is a variation of various old-school traveler's cheque schemes.