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Caution on multiple-store gift cards like Simon VISA

Appearing in the 1/26 issue of the San Jose Mercury News Actionline column
was a complaint by a recipient of a Simon VISA card that the user had been
charged a $15 maintenance fee on a card received Feb 2005.

To sum up, "California Civil Code Section 1749.5 (e) says that a gift
certificate or gift card cannot contain a service charge, including a dormancy
(non-use) fee." However, VISA, Mastercard & banks were given a big loophole in
Section 1749.5 (a) that says the law does not aplly to "any gift card usable
with multiple sellers of goods or services, provided the expiration date, if
any, is printed on the card."

In California, gift cards do not expire or have service charges except in
the above case.

This might also apply to your state.

Bottom line: unless you are planning to use these multiple-seller cards
quickly, I'd advise skipping any promotion pushing these cards.

[Non-text portions of this message have been removed]

Ted cautioned about Simon Visa cards: Bottom line: unless you are
planning to use these multiple-seller cards quickly, I'd advise skipping
any promotion pushing these cards.

I disagree, in part. The cards from Coast and Bally's (and I think
Harrah's and possibly Palms --- dealing with them is "Shirley's job",
not that she minds) have been these Simon Visa cards. There is a $2.50
per month charge per month six months (possibly one year) after
issuance, and it can possibly be when they were issued to the casino
rather than when you received them. So you need to use them relatively
quickly. In the example Ted cited, somebody let them sit idle for six
months and was shocked by the $15 service charge.

If you have a choice between, say, two $500 cards and one $1,000 (or
even two $50 versus one $100), it makes sense to get the larger
denomination --- as the $2.50 charge per month is PER CARD, independent
of the size of the card.

In addition, these cards can be used to buy gift certificates that don't
expire at the store of your choice --- whether it's Nordstrom,
Frederik's of Hollywood, Circuit City, or wherever. (Maybe we should
include Hooter's for Beach Stu?) Since you get to pick the store that
works for your lifestyle, this has great flexibility and avoids those
service charges.

Subject to these constraints, these are almost as good as cash. These
are a GREAT way to turn comps into cash, when allowed. Skipping
promotions involving these cards is definitely NOT what I would
recommend. When Coast last year had a "buy $1000 worth of Simon Visa
cards for $900 worth of points" promotion, we ended up buying the cards
off of several people at $925 per $1,000 of Visa cards. They were happy
because the cards were a little tricky to use, and Shirley was happy for
the "free money."

Bob Dancer

For the best in video poker information, visit www.bobdancer.com
or call 1-800-244-2224 M-F 9-5 Pacific Time.

[Non-text portions of this message have been removed]

There's a $15/month fee beginning on 13th month
www.simongiftcard.com

Appearing in the 1/26 issue of the San Jose Mercury News Actionline

column

was a complaint by a recipient of a Simon VISA card that the user

had been

charged a $15 maintenance fee on a card received Feb 2005.

To sum up, "California Civil Code Section 1749.5 (e) says that a gift
certificate or gift card cannot contain a service charge, including

a dormancy

(non-use) fee." However, VISA, Mastercard & banks were given a big

loophole in

Section 1749.5 (a) that says the law does not aplly to "any gift

card usable

with multiple sellers of goods or services, provided the expiration

date, if

any, is printed on the card."

In California, gift cards do not expire or have service charges

except in

the above case.

This might also apply to your state.

Bottom line: unless you are planning to use these multiple-seller

cards

···

--- In vpFREE@yahoogroups.com, TedChee@a... wrote:

quickly, I'd advise skipping any promotion pushing these cards.

[Non-text portions of this message have been removed]

are a GREAT way to turn comps into cash, when allowed. Skipping
promotions involving these cards is definitely NOT what I would
recommend. When Coast last year had a "buy $1000 worth of Simon Visa
cards for $900 worth of points" promotion, we ended up buying the cards
off of several people at $925 per $1,000 of Visa cards. They were happy
because the cards were a little tricky to use, and Shirley was happy for
the "free money."

I would say more than a little tricky. Some of the Harrah's properties
used to offer them, and they were nothing but a headache to use. Many
merchants couldn't take them, places like gas stations
couldn't/wouldn't take them, etc... and the $2.50/mo is a ripoff,
IMHO. Maybe it's better now, but when I last used them 15 mo ago, even
Simon CS couldn't help me when the card was refused at a merchant.
Better to use the Coast c/b for travel, IMHO.

We have obtained 5-10 Simon cards over the last six months and only once had a problem when we didn't get a slae price, had to credit the card back and wait two weeks for the returned amount to be available which we then used. I agree with Bob they are GREAT value for comps especially at Harrahs properties

···

----- Original Message ----- From: "paladingamingllc" <paladingamingllc@yahoo.com>
To: <vpFREE@yahoogroups.com>
Sent: Tuesday, January 31, 2006 5:47 PM
Subject: [vpFREE] Re: Caution on multiple-store gift cards like Simon VISA

are a GREAT way to turn comps into cash, when allowed. Skipping
promotions involving these cards is definitely NOT what I would
recommend. When Coast last year had a "buy $1000 worth of Simon Visa
cards for $900 worth of points" promotion, we ended up buying the cards
off of several people at $925 per $1,000 of Visa cards. They were happy
because the cards were a little tricky to use, and Shirley was happy for
the "free money."

I would say more than a little tricky. Some of the Harrah's properties
used to offer them, and they were nothing but a headache to use. Many
merchants couldn't take them, places like gas stations
couldn't/wouldn't take them, etc... and the $2.50/mo is a ripoff,
IMHO. Maybe it's better now, but when I last used them 15 mo ago, even
Simon CS couldn't help me when the card was refused at a merchant.
Better to use the Coast c/b for travel, IMHO.

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Bottom line: unless you are planning to use these multiple-seller cards
quickly, I'd advise skipping any promotion pushing these cards.

It's not quite as bad as all that. The Simon Visa cards now wait until the
13th month to assess the $2.50/month fee. It's annoying but not really
enough to make me avoid a promotion if there's no cash alternative. If worst
comes to worst I'm sure you can find someone to take them off your hands at
a small discount.

Cogno