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The Science of Giftcards - Research Paper Example

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You are easily able to buy any one of over a hundred gift cards at Publix Supermarkets and I’m sure the same must be true for many other grocer’s and department stores. Convenience…
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The Science of Giftcards
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Download file to see previous pages Cards issued by banks are also usually accepted at any vendor.
Just as with anything else there are laws governing gift cards, though they vary quite a lot by different States. Provisions are in place regarding fees that may be assessed on them, rules concerning expiration dates, and still more rules governing escheat provisions, which are to describe when property considered abandoned or unclaimed can be reclaimed by the government. According to the Federal Reserve’s website as of July 2010, new laws will take effect governing gift cards, also another 20 iStates have legislation pending regarding gift certificates and gift cards. We will not look more closely at these laws in recognition of the fact that this report is being prepared for a National Company.
2011 saw over 25 billion dollars spent on cards of all kinds, from the traditional store valued, rebates, promotional and loyalty cards, electronic and e cards. Holiday gift cards have been the most requested gift the previous four years with no competition even close. National Retail Fashion estimated that more than 75% of shoppers purchased at least one this Christmas Season. In the past few years gift cards sales have increased exponentially. Bankers, merchants, retailers, credit card companies, and makers of consumer goods haven’t failed to take notice of this.
A secondary market has even formed as backlash from the high success of the gift card market, where customers can sell, swap, and buy one another’s cards. Third party processors are now needed to manage the cards legal, regulatory and accounting issues. The last fact of these gift cards is quickly becoming a concern for some. Liabilities are complex when a gift card expires before the consumer has been able to redeem the card. Some States feel that unused breakage or balances are unclaimed property due them under State escheatment laws. ...Download file to see next pagesRead More
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