Comments on: Why Do People Give Out Free Loans to Companies by Buying their Gift Cards? http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Sun, 12 Feb 2012 00:30:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jim http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-31665 Jim Wed, 13 Oct 2010 22:09:01 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-31665 I can think of several reasons. First of all, many small coffee shops don't accept credit cards, only cash. It's easier to buy a gift card with cash than to use cash every time. Also, there is a certain risk of fraud every time you use your credit card. By minimizing the number of transactions, you reduce the chances of skimming. Finally, the store saves money on transaction fees as well. I can think of several reasons. First of all, many small coffee shops don’t accept credit cards, only cash. It’s easier to buy a gift card with cash than to use cash every time. Also, there is a certain risk of fraud every time you use your credit card. By minimizing the number of transactions, you reduce the chances of skimming. Finally, the store saves money on transaction fees as well.

]]> By: Sally Decker http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-30542 Sally Decker Sun, 12 Sep 2010 16:29:19 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-30542 Anyone who gets you to purchase a gift card so a donation can be made to the school or church, is getting you to use your money up front, before you buy anything. Another words, you are lending your money to the store, who puts it in the bank and makes interest on it, until you use the card. That is how they are able to give 5% to your school or church. Why not keep your money in the bank until you need it, use cash at the store, and make a donation to your church or school. Anyone who gets you to purchase a gift card so a donation can be made to the school or church, is getting you to use your money up front, before you buy anything. Another words, you are lending your money to the store, who puts it in the bank and makes interest on it, until you use the card. That is how they are able to give 5% to your school or church. Why not keep your money in the bank until you need it, use cash at the store, and make a donation to your church or school.

]]> By: MR.Moss http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-25273 MR.Moss Wed, 31 Mar 2010 18:24:53 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-25273 I always use a gift card for a rainy day. They really come in handy when you order things online instead of using your check card, Ordering pizza hut, woundering.I wounder did he or she is write down my information so when its all said and done I feel worry free when i use a visa gift card. I normally avg about $3,500 in my checking. Now ask your self next time you go to a store, order a pizza over the phone, buying things online what would u use? Checking debit card, Credit card, $50 gift card. I always use a gift card for a rainy day. They really come in handy when you order things online instead of using your check card, Ordering pizza hut, woundering.I wounder did he or she is write down my information so when its all said and done I feel worry free when i use a visa gift card. I normally avg about $3,500 in my checking. Now ask your self next time you go to a store, order a pizza over the phone, buying things online what would u use? Checking debit card, Credit card, $50 gift card.

]]> By: Grant http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3631 Grant Sat, 15 Dec 2007 19:51:27 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3631 Yeah, I don't really follow the logic in funding a gift card with credit. But to each his own. Around this time of year, it's tough to come up with really good gifts that people will actually use. Sometimes I break down and give a gift card, or sometimes I give the most universal gift card around: CASH. -Grant Yeah, I don’t really follow the logic in funding a gift card with credit. But to each his own.

Around this time of year, it’s tough to come up with really good gifts that people will actually use. Sometimes I break down and give a gift card, or sometimes I give the most universal gift card around: CASH.

-Grant

]]> By: CD Rates Blog http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3230 CD Rates Blog Wed, 28 Nov 2007 15:05:21 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3230 Boy I wish our groceries were $500/mo. But we are a family of eight and crazy enough to stay in California. I've purchased gift cards for my wife. It is like giving her a little gift, but have never purchased one for myself. I find it easier to give gift cards to friends and family and let them pick-out what they want. But really, it just means I'm not working as hard to see what they like, need, or want. Boy I wish our groceries were $500/mo. But we are a family of eight and crazy enough to stay in California.

I’ve purchased gift cards for my wife. It is like giving her a little gift, but have never purchased one for myself.

I find it easier to give gift cards to friends and family and let them pick-out what they want. But really, it just means I’m not working as hard to see what they like, need, or want.

]]> By: bloggernoob http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3204 bloggernoob Tue, 27 Nov 2007 20:17:21 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3204 yeah.only way this makes sense is if you get discounted giftcards. Its really the worst present you can get someone. Hey i don't know or like you very much. here is a gift card. "just give me cash next time." yeah.only way this makes sense is if you get discounted giftcards. Its really the worst present you can get someone. Hey i don’t know or like you very much. here is a gift card. “just give me cash next time.”

]]> By: MoneyNing http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3104 MoneyNing Sun, 25 Nov 2007 07:30:57 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3104 Elizabeth: Hmm. Something more to look forward I guess even though $700 seems very high. I don't think I appreciate how much raising someone is though.. Elizabeth: Hmm. Something more to look forward I guess even though $700 seems very high. I don’t think I appreciate how much raising someone is though..

]]> By: MoneyNing http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3099 MoneyNing Sun, 25 Nov 2007 05:13:40 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3099 Elizabeth: Donation is another good idea. But $500 a month is a lot of money. How many people do you have in your family? (Sorry, I only live with my fiancee right now so I'm not sure how much normal family groceries cost.) Elizabeth: Donation is another good idea. But $500 a month is a lot of money. How many people do you have in your family? (Sorry, I only live with my fiancee right now so I’m not sure how much normal family groceries cost.)

]]> By: Elizabeth http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3102 Elizabeth Sun, 25 Nov 2007 04:30:20 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3102 MoneyNing - We're a family of four (two teenagers). Actually we spend over $500/mo -- probably closer to $700 -- but that includes cleaning supplies, otc meds, tp, and toiletries purchased at the grocery store. I'm not sure what the average family spends. We eat well and mostly organic but not extravagantly and we waste almost no food at all. No soda, few sweets, some packaged foods. We have a few special diets in the family and I think that adds a bit to the total expense. MoneyNing – We’re a family of four (two teenagers). Actually we spend over $500/mo — probably closer to $700 — but that includes cleaning supplies, otc meds, tp, and toiletries purchased at the grocery store. I’m not sure what the average family spends. We eat well and mostly organic but not extravagantly and we waste almost no food at all. No soda, few sweets, some packaged foods. We have a few special diets in the family and I think that adds a bit to the total expense.

]]> By: Elizabeth http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/comment-page-1/#comment-3056 Elizabeth Sat, 24 Nov 2007 04:19:40 +0000 http://moneyning.com/money-stories/why-do-people-give-out-free-loans-to-companies-by-buying-their-gift-cards/#comment-3056 I buy grocery "gift" cards through my daughter's school. I pay face value and the school gets 5% of the value. I think it's a great way to get companies to donate to the school. I buy approx. $500 in grocery cards each month so her school gets a $25 donation each month. I buy grocery “gift” cards through my daughter’s school. I pay face value and the school gets 5% of the value. I think it’s a great way to get companies to donate to the school. I buy approx. $500 in grocery cards each month so her school gets a $25 donation each month.

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