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Comment by ryandrake | Hacker News Reader

The "gift card" in general is an anachronism whose time has passed. They have got to go. If companies are going to consider use of gift cards as red flags (as they often are, due to their being key components in money laundering and scams), then society should just abandon them. They are worse in every way than a prepaid credit cards, and in most cases where you want to give someone a gift card, you should probably just give them cash.

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The only “use cases” I’ve seen are discount or niche. For example, Target and Bass Pro Shops/Cabelas in the US both offered some kind of 5 or 10 percent back/discount around Black Friday on gift cards. Niche would fall into, generally, some small enough business that these messes aren’t likely to happen, where the point of the gift is specifically later-consumption, like a local coffee place that you know someone loves, or say a specialty herbs and spices place for a cook (where you wouldn’t know exactly what they want from there, but that they WOULD be delighted to get something from the place).

Otherwise? Yeah. Gift / prepaid credit cards are a horrible scam, because they tend to have a percentage or, worse, flat fee to activate. $4 extra on a $50 card as a gift means you just paid 8 percent just to GET the card.

I used to buy a gift card every ~week at a local sandwich place near where I worked and ate at every day. Their deal was a free meal (sandwich, chips, drink) with a $50 gift card purchase. Then I'd just pay with the card until it ran out.

If you buy them in bulk for employees they get progressively cheaper. It also matters how many customers you can serve vs how many you have and what you spend to get one customer into your store. If you spend 500 per day to get 100 customers into your brick and mortar store you can also give/spend 500 in discounts to get 100 more. If only 60% redeems the card the other 40% is profit. ETC

Un-redeemed GC aren’t profit. You can’t book the revenue, rather the balances count as a liability (because you owe all the random cardholders valuable goods/services) and, at least in my state, after a certain period of inactivity, you’re obligated to give that money to the State as unclaimed property. Google “escheatment”

There are people who don't own credit cards, and the app stores rarely offers any other "cash like" alternative other than gift cards.

It is a way to extract money from the unlucky unbanked people, like the immigrants making your lunch or cleaning the streets. A part of systematic oppression of the outgroup.

You can give your postal carrier a gift card but they're not allowed to accept cash or a prepaid card. https://about.usps.com/postal-bulletin/2012/pb22349/html/cov...

>they're not allowed to accept cash

my sweet summer child, neither rain nor sleet nor cash nor dark of night will stay your postal carrier from zer's appointed rounds, but winter is coming... do you want to still receive your mail?

> you should probably just give them cash

I really wish this was more acceptable. Even I have this block in giving just plain cash as a gift.

Giving cash also only really makes sense for kids or other asymmetrical relationships where one gives more than the other. If you are just passing cash around then you may as well have everyone not gift anything. If you want to show someone that you appreciate them then spend some time making something yourself or just spend time with that person.

Gift cards are worse in every case though unless they come with a heavy discount - and even then it's a pretty shitty gift.

It's company scrip for Boomers.

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