I thought the uptake was going to be that the whole concept of a gift card is ludicrous. Instead I'm sold on using a different kind of gift card.
Don't get me wrong -- I often prefer getting gift cards to getting something useless, but they just seem like a cover for not knowing me very well. I suppose they make sense when there's likely to be an asymmetry in charity. But if you're going to give cash, why give at all? What use is it to exchange $50 bills?
The best explanation I've ever heard for gift cards is that they force the recipient to spend money on "something fun" rather than being strictly practical. Some gift givers would rather know you went out for a nice meal or bought a new tie or something than that you used their gift to buy gas or everyday groceries. I'm not sure I agree with this sentiment, but I can see where it's coming from.
The big thing that flies in the face of this is that people spend tons of money on gas, grocery, and Wal-Mart cards. Some of those might be for underbanked people, but many aren't. With Amazon, for example, I'd guess most people just instantly apply the credit to their account and don't think about it after that.
There's a thoughtfulness treat-yourself aspect to them, and there's a practical make-sure-this-can-be-used aspect. The data seemed to point that the practical aspect is missing, the gift cards are valued less in secondary markets than their more practical counterparts.
Say a relative sends you a gift card for big kids birthday, throught Facebook, since that's the Internet now. You attach it to your amazon account, and then poof, little kids diapers on subscribe and save come off of the gift card.
Ita now happened twice in this house.
There's no way (currently) to remove a gift card from a subscribe and save order Once you have a balance on your amazon account.
So, hey 7yr old, your uncle just accidentally bought you diapers for your birthday. Well make it up to you.
Don't get me wrong -- I often prefer getting gift cards to getting something useless, but they just seem like a cover for not knowing me very well. I suppose they make sense when there's likely to be an asymmetry in charity. But if you're going to give cash, why give at all? What use is it to exchange $50 bills?