Do rebate cards make it tougher to collect?

Herb Weisbaum • Profile • E-mail

Do you want paper or plastic? We’re not talking grocery bags here, we’re talking retail rebates.

A growing number of companies have made the switch from paper checks to prepaid plastic rebate cards. Verizon Wireless, Sprint, Staples, Nordstrom, Toshiba, Nokia and Home Depot are just some of the big name companies that have made the switch.

Of course, the companies love it. But for consumers, it’s a mixed bag.

Rebate cards are like a gift card. They’re a debit card that comes loaded with the amount of the rebate. Some are limited to a specific store. Those with a credit card logo (Visa, MasterCard, American Express or Discover) can be used wherever that credit card is accepted.

Elizabeth Ebright of Bloomsburg, Pa. recently received her first rebate card after buying a refrigerator at Home Depot. Ebright says it was much easier to use than a check because she didn’t have to make a deposit. She could go shopping right away.

“Whenever we’ve gotten a rebate check it seems like you had to wait forever, but this came really fast,” she says.

Staples started using rebate cards in the summer of 2008. The company says customer feedback has been positive.

“Consumers appreciate the convenience, ability to immediately spend the rebate and the elimination of check cashing fees,” says Staples public relations manager Karen Pevenstein.

But not all consumers are thrilled with the switch.

Scott Clark owns a marketing company in Lexington, Ky., and buys a lot of products with rebates. Clark claims it’s often hard to get the full value out of the card.

“You always end up with $2 or $3 left of the card before you get fed up with it and throw it out. If you can’t spend the whole thing at once, trying to spend the remaining balance is going to be a hassle.”

Get the rebate you deserve * Read and understand requirements, including deadlines, before buying. * Copy all of the necessary paperwork and put it in a folder. Record the latest date you expect the rebate. * If the rebate form is available online, print it immediately after buying the product. The form might be removed after a promotional period. * Don't wait until the deadline. That way, if the company says something's missing, you have time to get it. * Keep an eye out for your check, which might resemble junk mail. If the rebate seems late, contact the company. If you're not satisfied, file a complaint with your state's attorney general or with the Federal Trade Commission at http://www.ftc.gov/ or 877-382-4357. Source: Consumer Reports

Consumer Reports executive editor Greg Daugherty says he’d rather get his rebates in the form of a check.

“A check you put in the bank and use the money any way you want,” he says. ”A rebate card has all kinds of terms and conditions attached to it.”

Consumer advocate Edgar Dworsky, founder of ConsumerWorld.org, calls rebate cards “a complete pain in the neck” because you can have the value wiped out by maintenance fees and expiration dates.

“For years, manufacturers and retailers have made it difficult to obtain rebates,” Dworsky says. ”Now, they’ve found a clever way to keep you from spending the rebate you get.”

Industry representatives insist that’s simply not true. Kirsten Trusko, president of the Network Branded Prepaid Card Association, says retailers use rebate cards to help build a positive relationship with their customers.

“Everybody wins if we get the cards used,” she says.

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