Make Restaurant Gift Cards Work for You (2/2)

* Set the terms when Gift Cards can be used (according to what is acceptable by law). For example, some restaurants do not accept Cards for private party payments, outside catering payments, etc. *Give “Frequent Diner points” for Gift Card purchases as an extra bonus. Know the Gift Card Laws in Your State Check Federal and your own State Laws (especially Massachusetts and California) when issuing Gift Cards regarding terms of use, non usage fees, expiration dates, redemption for cash, reselling, start up and activation fees, tax laws, etc. Additionally, make sure your customers are aware that Gift Cards are transferable, meaning that anyone can use them, even if a customer’s wallet is stolen, and that the restaurant may not be responsible for personal usage. Everyone Loves Gift Cards * Gift Card issuer ValueLink’s survey in 2003 found that 64 percent of American adults (139 million people!) either bought or received a Gift Card, up from just 37 percent in 2002. * ValueLink also found that 55 percent of those in its survey spent more than the initial value of the Card they received. *Sales of Gift Cards in the 2004 post Christmas holiday season may have exceeded the National Retail Federation's prediction of $17.3 billion, according to Bloomberg News. * Over 10% of the Starbuck’s company’s transactions involve usage of a Store Value Card, forging extreme loyalty by its customers. * ValueLink www.valuelink.com, a Division of First Data, is the leading provider of high quality, high volume information processing and related services.