One of the items we discussed this morning on News 4 Today was the "computer glitch" that apparently prevented people from redeeming their Walmart gift cards they received for Christmas.

The retail giant says it is working to correct the problem so people can use the cards.  It has something to do with not being able to verify the cards quickly.

For weeks we had been reporting how the popularity of such gift cards has sky-rocketed this year.  Once upon a time, a gift card given for any occasion was seen as a "cop out".  An unimaginative gift of last resort, purchased by people who were too lazy to find the right present.

But the gift card has gained respectability in recent years.  My wife and I have given and received many gift cards, and it's nice being able to choose for yourself, instead of having someone give you something you don't really need.

Here at News 4, however, we have received complaints about some gift cards that require an activation fee, or that charge the card recipient for not using the card within a certain period of time. 

Military families complained to us about long-distance calling cards they had purchased and sent to their loved ones serving overseas, so they could call home.  But the fees on some of the cards were so high, a half-hour card would only provide the military person with about 15 minutes of talk time... the rest was eaten up by the fees.

You definitely have to read the fine print.

But there is a greater risk to gift cards, and any other kind of certificate or coupon that requires you to pay up front, and redeem your product or service later.  It is a risk that thousands of Walmart gift card holders are finding out about now:

A business that already HAS your money is usually not as attentive to you, or as eager to make sure you are satisfied.  It is just human nature.

The best leverage you have as a shopper is the fact you haven't given the business your money yet, and you can turn around and go somewhere else at any time.

Once you give up that leverage, by forking over the money up front for a gift card, certificate, long-term service agreement... whatever... you suddenly become a second-class customer... whose needs are now less important to the business than the needs of other customers who haven't paid yet.

For example: I was a satisfied customer of a local air conditioning company for a couple of years, during which they always treated me fairly and responded quickly.

Then one day my favorite technician with the company asked if I wanted to buy the "special annual package".  For a slightly discounted price, I could pay in advance for a summer a/c check AND a furnace tune-up, that he would come back out and perform the following winter.

So I bought the $150 package... and you know what happened.

By the time winter rolled around, my favorite technician had moved on to another position, and the person who took my phone call gave me a bunch of lame excuses why they could not honor the agreement I'd paid for the previous spring. 

When that didn't work, she acted like she was doing me a favor by scheduling me for a pre-paid service call.  And of course, the only time they could "fit me in" was about a week later.  If I had been a customer who hadn't pre-paid, I probably could have had someone out there that afternoon.

If a company that otherwise has excellent customer service treats its pre-paid customers that way, imagine how a business with poor overall customer service must treat them.

Gift cards are convenient and do provide flexibility, but there's always a chance it could lead to a hassle for the person receiving it. 

Maybe that's why grandma always just stuffed cash in an envelope. 

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