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I Hope you enjoy shopping at the Racing Ahead store and that you find what you are looking for. From time to time, new additions will be made to departments so please do come back and look again.
Gift CardsGift cards are restricted monetary equivalents that are issued by retailers or banks to be used as an alternative to a non-monetary gifts. Highly popular, gift cards rank as the second-most given gift by consumers in the United States (2006) and the most-wanted gift by women and the third-most wanted by males. Gift cards have become increasingly popular as they relieve the donor of selecting a specific gift. In Canada, $1.8 billion dollars were spent on gift cards whereas in the United States, about $80 billion were paid for gift cards in 2006. The recipients of gift cards can use them at their discretion within the restrictions set by the issuing agency.
Function and Types of Gift CardsGift cards may resemble credit cards or display specific themes on plastic cards the same size as credit cards . The cards are identified by specific numbers or a code, not usually with an individual name and thus could be used by anybody. They are backed by an online electronic system for authorization. Some gift cards can be reloaded by payment and can be used thus multiple times.Cards may have a barcode or magnetic strip, which is read by an electronic credit card machine. Many cards have no value until they are sold, at which time the cashier enters the amount which the customer wishes to put on the card . This amount is rarely stored on the card but is instead noted in the store's database, which is crosslinked to the card ID. Gift cards thus are generally not stored-value cards as used in many public transport systems or library photocopiers, where a simplified system (with no network) stores the value only on the card itself. To thwart counterfeiting, the data is encrypted. The magnetic strip is also often placed differently than on credit cards so they cannot be read or written with standard equipment. Other gift cards may have a set value and need to be activated by calling a specific number. Gift cards are divided into "open loop" and "closed loop" cards . The former are issued by banks or credit card companies and can be redeemed by different establishments, the latter by a specific store or restaurant and can be only redeemed by the issuing provider. The latter, however, tend to have lesser problems with card value decay and fees. In either case the givers would buy the gift cards (and may have to pay an additional purchase fee), and the recipients of the cards would use the value of the cards at a later transaction. A third form are the "hybrid closed loop" cards where the issuers bundle a number of closed loop cards ; an example is gift cards for a specific mall. Gift cards differ from gift certificates, the latter are usually sold as a paper document with an authorized signature by a restaurant, store or other individual establishment as a voucher for a future service; there is no electronic authorization. A gift certificate may or may not have an expiration date and generally has no administrative fees.
Pitfalls in Using Gift CardsIt has been argued that holiday giving destroys value due to mismatching gifts. The most efficient way to keep value in gifting would be to give cash, however this is socially acceptable only within limits. Gift cards , to a degree, may overcome this problem but have certain pitfalls. In addition, it has been suggested that the absence of the thought of selecting a specific gift makes gift cards a worse choice than a poorly executed but individual gift. New products in the gift cards industry are evolving to tackle this "impersonal" pitfall of gift cards . New services launched by some service providers allows for customization and personalization of gift cards .Gift cards have been criticized for the ability of the issuing authority to set rules that are detrimental to the consumer. Thus the recipient may have to face expiration dates, administrative fees, restrictions in use and absence of adequate protection in case of fraud or loss. Over time the value of gift cards may be zero. Gift cards become valueless when a company files for bankruptcy protection.
Redemption Rate of Gift CardsNot all gift cards are redeemed for a multitude of reasons. Some common reasons may include loss of cards , time decay (expiration and fees), personal disinterest in the stores that the cards are accepted, complex rules of redemption and the attempt of the recipient to save money for the giver. It has been estimated that perhaps 10% of cards are not redeemed amounting to a gain for retailers of about $8 billion in the US in 2006.
Regulations and Gift Cards
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