How to Increase the Power and Value of a Gift Card

Gift cards are one of the easiest, fastest, and most efficient ways to say Happy Birthday or Merry Christmas to someone special. The recipient can purchase what they want, when they want. These cards benefit the recipient, but it also gives a beneficial edge for the merchant. In the past, gift cards had only so much value, but today the value of the card can increase by earning interest, rewards, and other trade-offs.

Last year alone, over 8 billion dollars were lost from gift cards that have expired, been lost, or have decreased in value. That is a lot of gift-giving loss, a loss that even the Grinch that Stole Christmas probably couldn't do.

Gift cards and gift certificates hold not only a value to the recipient, but the company too. When a customer buys a gift card, that money belongs to the company until it is used, meanwhile earning interest for the company. The earlier you buy a gift card, the more value to the company. If you buy a gift card for a recipient in June, but don't give it until Christmas, this helps the company as the interest rolls in (not to mention it helps us to eliminate last minute shopping for birthdays and holidays). When a company makes money, we benefit by getting lower prices, more rebates, and better bargains.

By the time the merchant offers the lower prices and other incentives, we won't have the benefit of purchasing those deals because the gift cards are no longer hold the original value.

The 8 billion dollars loss from last year is expected to rise in the future, but there ways to maximize the value and benefit from the card.

A new company launched in December 2008, Leverage Cards, will offer real-time management and value of all your gift cards, let them earn interest, and even let you trade them too. Not all companies participate yet, but as of this writing, they have over 200 companies willing to offer participation.

Buyers can maximize the value of a gift card:

The Value of a Favorite Store List