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Starbucks claims $181M in revenue from unused gift cards (2022)

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Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#31

Post by SketchySeaBeast »

xwdv wrote: post #29
hammock wrote: post #27

Earlier quoted context omitted.

>delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees. Uber and Lyft do it now. It ought to be illegal, or opt-in (with a discount to the customer). Delayed billing wreaks havoc on the majority of Americans who live paycheck to paycheck

It does not wreck anymore havoc than lots of separate transactions pushing them deeper into debt.

If you're watching your credit card to know how much money you have left won't the Uber rides not reflect until they do a mass bill?

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#32

Post by sosodev »

hammock wrote: post #27
ZooCow wrote: post #19

It's also a way for them to save on credit card processing fees by trading the fees of multiple (relatively) small drink purchases for one fee for the gift card purchase. An often overlooked innovation of iTunes was delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees.

>delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees. Uber and Lyft do it now. It ought to be illegal, or opt-in (with a discount to the customer). Delayed billing wreaks havoc on the majority of Americans who live paycheck to paycheck

Don't they authorize each individual ride and then bundle them up into a single transaction?

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#33

Post by ProAm »

JohnFen wrote: post #16

Every so often, companies I've worked for have given me Starbucks or Amazon cards as rewards. I have no use for either of them, though, so typically I give them to someone else. Amazon cards are easy -- they go to my (adult) children. Starbucks are more difficult, though. I sometimes have trouble giving them away, then they get lost or accidentally thrown away. I bet Starbucks has made more money off me from that tha…

Gift cards from work always go in the trash, they are a hassle to remember you have one, tote it around or redeem it at a place I probably don't frequent enough.

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#34

Post by jstarfish »

hammock wrote: post #27
ZooCow wrote: post #19

It's also a way for them to save on credit card processing fees by trading the fees of multiple (relatively) small drink purchases for one fee for the gift card purchase. An often overlooked innovation of iTunes was delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees.

>delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees. Uber and Lyft do it now. It ought to be illegal, or opt-in (with a discount to the customer). Delayed billing wreaks havoc on the majority of Americans who live paycheck to paycheck

It is a discount to that customer demographic.

For debit cards, imagine your account has $0.01 in it and about to be overdrawn. Each transaction from here on out will net you a $35 overdraft fee.

Accounting for the fees, would you rather have 5 immediate charges of $1, or 1 delayed charge for $5?

For credit cards, there's no overdraft, just a hard cutoff.

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#35

Post by BoorishBears »

xwdv wrote: post #29
hammock wrote: post #27

Earlier quoted context omitted.

>delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees. Uber and Lyft do it now. It ought to be illegal, or opt-in (with a discount to the customer). Delayed billing wreaks havoc on the majority of Americans who live paycheck to paycheck

It does not wreck anymore havoc than lots of separate transactions pushing them deeper into debt.

Stuff like this reminds me of the bubble tech lives in.

There are a lot of people who aren't on top of their finances at all.

For them, a delayed transaction wreaks plenty of havoc because they're not keeping track of how much "ghost transactions" are affecting the account balance they see.

Now you could argue it's on them for not being on top of their finances, but Uber makes a lot of money from these people. The largest demographics are 18-24 yr olds, ie people who honestly can't afford overpriced delivery but do it anyways.

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#36

Post by triceratops »

ProAm wrote: post #33
JohnFen wrote: post #16

Every so often, companies I've worked for have given me Starbucks or Amazon cards as rewards. I have no use for either of them, though, so typically I give them to someone else. Amazon cards are easy -- they go to my (adult) children. Starbucks are more difficult, though. I sometimes have trouble giving them away, then they get lost or accidentally thrown away. I bet Starbucks has made more money off me from that tha…

Gift cards from work always go in the trash, they are a hassle to remember you have one, tote it around or redeem it at a place I probably don't frequent enough.

If you're throwing them in the trash, why not give them out whenever you're expected to tip?

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#37

Post by nicenewtemp84 »

el_benhameen wrote: post #18
popotamonga wrote: post #11

In one of my businesses, hotel booking, i also sell gift cards and market them agressively in festive seasons.1 year validity. 45% goes unclaimed, its now 20% of total profit (all legal here, expiry date in a large font)

That seems deeply unethical and, at least in California, illegal. Not something I’d brag about in any case.

Is it really illegal that for a discounted fee you get access to a hotel room during the next year? If that's the agreement you make? If I could pay $100 now to get my whole family into Disney land any weekday in 2024, I'd pay for that.

That's not the same as putting $100 on a hotel gift card which you can use anywhere anytime at the hotels many properties, maybe to cover a pet fee or cleaning fee or parking, or to reduce the cost of a room during a peak cost period like 4th of july.

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#38

Post by triceratops »

benburleson wrote: post #17
popotamonga wrote: post #11

In one of my businesses, hotel booking, i also sell gift cards and market them agressively in festive seasons.1 year validity. 45% goes unclaimed, its now 20% of total profit (all legal here, expiry date in a large font)

That seems...sleazy.

Serious question: what should a business owner do? Track down every gift card buyer and refund their money?

Re: Starbucks claims $181M in revenue from unused gift cards (2022)

#40

Post by capableweb »

Loic wrote: post #21
ZooCow wrote: post #19

It's also a way for them to save on credit card processing fees by trading the fees of multiple (relatively) small drink purchases for one fee for the gift card purchase. An often overlooked innovation of iTunes was delayed billing, which converted multiple separate song transactions into one bundled transaction to save on credit card transaction fees.

Highway tolls in France have been doing it for something like 20 years.

Yeah, but not in the US so obviously it doesn't count as true innovation.
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