I just use my cards as an excuse to go out to eat and use it and pay the difference on a CC.
I’m surprised to see so many answers! I’m glad to learn that I can load odd amounts onto my Amazon gift card. I’ll get rid of the rest of the $200 rebate card, once I figure out how much is left on it.
The cards do expire, I believe both of mine are good for 6 months. They can be used after that, but with lots of charges.
I’m also glad to learn that they can be used for groceries - I didn’t realize that payment could be split.
I have had that issue ClaremontMom. I once gave DD one of those cards loaded with her back to school money for clothes. Figured it was safer than a wad of cash. She spent it down to zero, and we threw the card out. A couple weeks later she decided to return something, but we could not get our money back because they would only reload back onto the same card she used to buy the item. Credit Card company was no help either. I think we ended up with a store credit.
That’s why I like to use those types of cards to eat at restaurants – I want to consume the goods so no chance I will have to return anything or get a credit back.
They use them because they are convenient, they might have some sort of deal with Visa or whoever where they pay less fees, but the biggest reason is as others have pointed out, there is a likelyhood they will never have to pay out the full amount. Between the cards expiring (that happened to me) and people with odd amounts who don’t want to be bothered with splitting cards on a purchase, transferring it to a gift car, end up getting the remainder back (however that works). Doesn’t sound like much, but if you look at the volume of rebates being given this way, all those couple of bucks and change, change, even total amounts, add up. It is the same way that in NYC with the metrocard when you buy an amount that gives a bonus, the total amount on the card is not an integer value when divided by the fare, they count on people having value < 1 fare on the card, and either the card no longer works/expires, or they simply end up getting a new card, that float adds up.
There are a few places you might be able to spend the exact amount. One is at the gas pump, if you squeeze carefully. Another would be putting more money on something like a subway farecard.