GiftCardRescue protects you against failed companies

GiftCardRescue.com, a company that allows visitors to sell or exchange unused gift cards, announced Monday that it has instituted a new bankruptcy protection policy that will cover customers who purchase gift cards from the company's site.

"The current economic downturn is causing anxiety among consumers about whether a gift card purchased today will be redeemable tomorrow given the recent surge in bankruptcies by retailers," Kwame Kuadey, GiftCardRescue's CEO and founder, said in a statement. "This policy is to reassure our customers that their gift card losses from bankruptcy will be covered."

According to the company, GiftCardRescue will reimburse a customer's gift card if the retailer goes bankrupt within a year of the gift card purchase, as long as the retailer is no longer honoring gift cards. Kuadey said his company will cover the cost of the insurance with its own cash reserves and will not pass it on to the retailers or customers.

GiftCardRescue also announced Monday that it will start keeping tabs on retailers through its GiftCardBlogger blog. The site will will feature updates on retailer bankruptcies and their impact on gift card holders.

Gift card sales were one of the hottest buys during last year's holiday shopping season, but economic troubles mean gift cards may not top the list this year. The National Retail Federation announced last Tuesday that gift card sales are expected to drop 6 percent this holiday season.

[tipoo_]

hmm, i will try this website out...i have SO many giftcards just lying around!

[iff2mastamatt]

I remember when I received a "Sharper Image" gift card last year when the Sharper Image filed for bankruptcy right after the holidays, thus making all gift cards void. It was a real bummer.

Fortunately, Brookstone offered 25% off all purchases at their store if you had a sharper image gift card. However, there was no refund or credit.

[dbarefoot]

Will gift card sales drop more than the average gift sale? It seems like gift cards would offer better, more tangible value, and thus be more impervious to an economic downturn.

[illegallydead]

the problem is for the consumer that they have some "money" that might be worth zilch if the company goes under. The problem for the retailers is that they cannot record the gift card revenue as cash income, but rather as an un-earned revenue since they have not provided a "service", yet they have been paid. (haha I have been studying a bit too much for my accounting class, lol) That is why the retailers do not tend to like gift cards, and why too many of them (especially if they go un-cashed) can lead to bad times for the retailer

[loose_screw]

What if GiftCardRescue goes out of business?

[illegallydead]

lol that is the question! :)