Empty gift card sent from Disney?

[Back!Elbow!Shoulders!]

I got some puzzling mail from Disney yesterday and wanted to see if anyone else has gotten the same thing or if anyone has any insight into what Disney is hoping to accomplish with it.

Disney sent me an empty gift card and the 4 simple steps to adding money to it.

There doesn’t appear to be any financial incentive to putting money on this card. There’s an activation code that I assume also serves as a way to track who bites on this.

So is this a new thing? What is the logic behind it? It just seems odd to me...

(Wasn’t quite sure which forum was most appropriate for this. Mods please feel free to move if there’s a better fit.)

 

[DisneyGigi]

I got one last year- I think the idea is to put money towards someone’s vacation on the card and give it to them for Christmas.

 

["El Gran Magnifico"]

I usually use gift cards. However, I've never had one sent as part of a pre-trip package. Seems they are looking to shift behavior a bit. It's a win/win for Disney. Once you load it, Disney has the money (interest) and you're pretty much committed to spending that money with Disney.

You can't out-spend the card. But you can under-spend it.

I'd imagine the breakage here would be substantial. How many gift cards would get down to $3.83 (as an example) and never be redeemed? I'd guess a whole bunch. You'd be surprised at how many people...when the balance gets that low.....don't do a split transaction and eat up the balance and then pay the difference. Or just forgo a purchase because they'd have to use an alternate form of payment for the difference and the original amount just goes unused. There's a reason grocery stores (and gas stations) love gas card promotions.

 

[DisneyGigi]

I found the old one, it was still in my junk drawer. Lol- I assumed we got it because my adult son goes with us when he can. Think I saved the card for that reason- in case he could go with us this year. It was marketed that way with a to from note on the inside.

 

[The Mighty Tim]

Do Disney gift cards gave an expiry date?

 

[Back!Elbow!Shoulders!]

Seems they are looking to shift behavior a bit. It's a win/win for Disney. Once you load it, Disney has the money (interest) and you're pretty much committed to spending that money with Disney.

You can't out-spend the card. But you can under-spend it.

I'd imagine the breakage here would be substantial.

Thanks. That was a good explaination. I don’t know a lot about business stuff but it certainly felt like they were trying to encourage behavior.

When is gift card money counted as revenue? When it is purchased or redeemed? If Disney and I both know my trip is in 2019, wouldn’t I be essentially giving them an interest free loan for a couple months?

 

["El Gran Magnifico"]

If Disney and I both know my trip is in 2019, wouldn’t I be essentially giving them an interest free loan for a couple months?

Yes. And then you can't get the money back. So if you load $1000 and only spend $800. You won't lose the $200 difference, but it's not like you can walk into Guest Services and say "give me my remaining balance back"....It'll be available when you return.

The reason I go with GC's is several fold. The security risk of whipping out a CC for every purchase (not to mention tracking that $6.43 purchase I made three days ago to determine if I actually bought that cinnamon roll), not carrying multiple cards, and I get free money. GC's give you a remaining balance with every transaction. A lot easier to track. When you get low, just reload at any convenient gift store.

The free money part comes in when I get promotions on several credit cards. I've bought $300 in Disney gift cards with my Home Depot card before. If they want to run a promo and give me a 10% statement credit on any purchases over $200. I'm in. $300 in Disney gift cards less $30 in statement credits = $30 free dollars.

I go frequently, so if I get home with $150 left on a gift card, it'll be spent within 30 days.

 

[Goofyernmost]

Thanks. That was a good explaination. I don’t know a lot about business stuff but it certainly felt like they were trying to encourage behavior.

When is gift card money counted as revenue? When it is purchased or redeemed? If Disney and I both know my trip is in 2019, wouldn’t I be essentially giving them an interest free loan for a couple months?

To some extent, but, I doubt that they really care about that since they did away with all the prepaid, non-expiring tickets. If someone puts actual cash on the card, then it is a debt that Disney has to pay back, so it is listed as a liability until it is redeemed, then it becomes income against debt. No interest paid, for sure, but, the numbers of those as opposed to the old tickets is minor and they were quite willing to give up those interest free things. I think that how the AP's are handled that income is claimed at the time of purchase. But, hey, even if you buy a regular ticket in advance it is still a debt until it is used.

 

["El Gran Magnifico"]

To some extent, but, I doubt that they really care about that since they did away with all the prepaid, non-expiring tickets. If someone puts actual cash on the card, then it is a debt that Disney has to pay back, so it is listed as a liability until it is redeemed, then it becomes income against debt. No interest paid, for sure, but, the numbers of those as opposed to the old tickets is minor and they were quite willing to give up those interest free things. I think that how the AP's are handled that income is claimed at the time of purchase. But, hey, even if you buy a regular ticket in advance it is still a debt until it is used.

Not sure how Disney operates internally, but I'd assume the initial revenue would come in as cash flow, and the recognition of the revenue wouldn't be realized until the goods or services were rendered - and then disbursed to the division who provided the goods or services (i.e. food and beverage, merchandising etc.). So yes, a liability in respect to disbursement.

 

[Smiley/OCD]

Thanks. That was a good explaination. I don’t know a lot about business stuff but it certainly felt like they were trying to encourage behavior.

When is gift card money counted as revenue? When it is purchased or redeemed? If Disney and I both know my trip is in 2019, wouldn’t I be essentially giving them an interest free loan for a couple months?

Having owned a retail store and working in retail mgmt. for 30+ years, a gift card sold is a SALE, positive transaction...when it's redeemed, it goes as a debit, a negative transaction...which is why, from a business point, they LOVE to sell gift cards...if they're lost or not redeemed, it's found money for the business (especially if there's an expiration date).

 

[me_stitch]

I got one today, was hoping it was a pin code.

 

[Frankie The Beer]

At least you got something. These gift cards are not free Disney is giving these away at a loss, I suggest you thank Disney for their generosity.

 

[Back!Elbow!Shoulders!]

Chill, the op was simply asking what the purpose was, not complaining

Thanks. Definitely just asking out of curiosity.

I think previous poster may have been being a bit sarcastic. At least that’s how I took it- mostly because my own default setting is sarcasm.

 

[larryz]

All I know is I got one last year, put money on it, and sent it to DS for his trip to WDW. He appreciated it.