6 ms·

So I pay a company 5% for the privilege of sending my friend blocks away so I can put money in his paypal account?

by pekinb 16y ago

pg 16y ago
You always have to pay to send someone money. And a giftcard for a store or restaurant also requires your friend to go there.
- Smirnoff 16y ago
  I believe paypal doesn't charge you anything when you send your money to your friend on a non-business issue.
  - pg 16y ago
    That's only true if you pay them out of your Paypal account or linked bank account. If you want to pay with a credit card, you have to pay a fee. https://www.paypal.com/cgi-bin/webscr?cmd=_display-receiving-fees-outside https://www.paypal.com/cgi-bin/webscr?cmd=_display-receiving...
    - Smirnoff 16y ago
      Yes, you are right. It just happened that my bank account is integrated with paypal, so it was always free for me.
  - callmeed 16y ago
    Not any more. "Our fees are now the same for all accounts - Personal, Premier, and Business." https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outs...
    - wallabe 16y ago
      From your own link: Free when the money comes from PayPal balance or bank account. 2.9% + $0.30 USD when the money comes from a debit or credit card or PayPal Credit (the sender decides who pays this fee).
- mttwrnr 16y ago
  I had only heard of Treatful in this space. They said a common use case they didn't expect was buying a gift card for someone on the other side of the country. A lot of times people wanted to get a friend a gift for a local joint in NYC but obviously couldn't pick it up. Makes sense.
- pekinb 16y ago
  Me: "Hey dude, there's this great new Mexican place on your block. Here's $30. Enjoy." = free Me: "Hey dude, check out this website that's going to tell you about this great new Mexican place on your block. Here's $30. Enjoy." = not free
  - wallabe 16y ago
    Seems like you're arguing against gift cards in general. $100b worth of gift card spending suggests other people feel differently. Maybe you're not the target market? http://www.emarketer.com/Article.aspx?R=1005802 http://www.emarketer.com/Article.aspx?R=1005802
    - pekinb 16y ago
      $X is worth $X in gift cards. I'm fine with that. I hate the idea of paying this company when they don't add any value.
      - klochner 16y ago
        It really depends on whether the cost is worth avoiding the effort to get the gift card and send it to your friend. I don't see a lot of value add (as a giftcard replacement) for vendors who are already selling gift cards online.
      - old-gregg 16y ago
        "Don't add any value"? I thought the idea/value was to give people the option of sending gift cards for any business. That Mexican restaurant you keep referring in your examples may not even have a giftcard program.
        pekinb 16y ago
        It wasn't a gift card in my examples. It was cash. Or an American Express giftcard. Just like you'd be getting with GiftRocket, except GiftRocket wants a cut.
wallabe 16y ago
Gift cards have lots of costs...some hidden (expired cards, lost cards), some more explicit (shipping costs, service fees) These dont expire. I think it's pretty cool.
- pekinb 16y ago
  At that point, why not just transfer the money yourself? I get that gift cards > cash for gifts, but if you're worried about the issues you mentioned, you might as well give the person the cash and tell them you know this great new restaurant you think they'd love. It's like you're saying, "Hey, wouldn't it be cool if there were gift cards that didn't have these drawbacks?" It exists. It's money.
  - wallabe 16y ago
    True. But my point is that tons of people already use gift cards even though you and I can agree it may not be a rational choice. There's something about the psychology of giving/receiving cash that our culture has not really accepted. It's not thoughtful enough even if you suggest where the recipient spends the money. If they can make Gift Rocket socially acceptable (by playing on the inherent problems with gift cards today) then I think it could be big.
klochner 16y ago
It's not any more ridiculous than facebook virtual gifts that cost money: "So I can pay facebook $1 to send my friend a virtual beer that he can't drink?" Both are arguably ridiculous to any (hyper)rational person, but people are not rational.
- wallabe 16y ago
  It's no more ridiculous than a normal gift card: "Wait, you paid $25 so I can have $25 that can only be spent in one location?" That's a cost right there...if flexibility had a price I'd bet it'd be >5%.
  - deleted 16y ago
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  - deleted 16y ago
    [deleted]
  - DanielStraight 16y ago
    No more ridiculous than a normal gift for that matter. Giving a purchased gift at all is trading $25 for an inflexible $25.
old-gregg 16y ago
But that's the idea of a gift card, isn't it? Otherwise why not just be handing cash out to friends? If I want you to go cart-racing for your birthday, you're going cart-racing. No excuses. :)
zende 16y ago
I've heard similar feedback about gift cards, but I continue to receive gift cards from friends. All things being equal, I'd much rather receive a GiftRocket instead of holding onto and likely losing a $25 physical gift card

So I pay a company 5% for the privilege of sending my friend blocks away so I can put money in his paypal account?

by pekinb 16y ago

So I pay a company 5% for the privilege of sending my friend blocks away so I can put money in his paypal account?

pg 16y ago

You always have to pay to send someone money. And a giftcard for a store or restaurant also requires your friend to go there.

Smirnoff 16y ago
I believe paypal doesn't charge you anything when you send your money to your friend on a non-business issue.
- pg 16y ago
  That's only true if you pay them out of your Paypal account or linked bank account. If you want to pay with a credit card, you have to pay a fee. https://www.paypal.com/cgi-bin/webscr?cmd=_display-receiving-fees-outside https://www.paypal.com/cgi-bin/webscr?cmd=_display-receiving...
  - Smirnoff 16y ago
    Yes, you are right. It just happened that my bank account is integrated with paypal, so it was always free for me.
- callmeed 16y ago
  Not any more. "Our fees are now the same for all accounts - Personal, Premier, and Business." https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outs...
  - wallabe 16y ago
    From your own link: Free when the money comes from PayPal balance or bank account. 2.9% + $0.30 USD when the money comes from a debit or credit card or PayPal Credit (the sender decides who pays this fee).
mttwrnr 16y ago
I had only heard of Treatful in this space. They said a common use case they didn't expect was buying a gift card for someone on the other side of the country. A lot of times people wanted to get a friend a gift for a local joint in NYC but obviously couldn't pick it up. Makes sense.
pekinb 16y ago
Me: "Hey dude, there's this great new Mexican place on your block. Here's $30. Enjoy." = free Me: "Hey dude, check out this website that's going to tell you about this great new Mexican place on your block. Here's $30. Enjoy." = not free
- wallabe 16y ago
  Seems like you're arguing against gift cards in general. $100b worth of gift card spending suggests other people feel differently. Maybe you're not the target market? http://www.emarketer.com/Article.aspx?R=1005802 http://www.emarketer.com/Article.aspx?R=1005802
  - pekinb 16y ago
    $X is worth $X in gift cards. I'm fine with that. I hate the idea of paying this company when they don't add any value.
    - klochner 16y ago
      It really depends on whether the cost is worth avoiding the effort to get the gift card and send it to your friend. I don't see a lot of value add (as a giftcard replacement) for vendors who are already selling gift cards online.
    - old-gregg 16y ago
      "Don't add any value"? I thought the idea/value was to give people the option of sending gift cards for any business. That Mexican restaurant you keep referring in your examples may not even have a giftcard program.
      - pekinb 16y ago
        It wasn't a gift card in my examples. It was cash. Or an American Express giftcard. Just like you'd be getting with GiftRocket, except GiftRocket wants a cut.

wallabe 16y ago

Gift cards have lots of costs...some hidden (expired cards, lost cards), some more explicit (shipping costs, service fees) These dont expire. I think it's pretty cool.

pekinb 16y ago
At that point, why not just transfer the money yourself? I get that gift cards > cash for gifts, but if you're worried about the issues you mentioned, you might as well give the person the cash and tell them you know this great new restaurant you think they'd love. It's like you're saying, "Hey, wouldn't it be cool if there were gift cards that didn't have these drawbacks?" It exists. It's money.
- wallabe 16y ago
  True. But my point is that tons of people already use gift cards even though you and I can agree it may not be a rational choice. There's something about the psychology of giving/receiving cash that our culture has not really accepted. It's not thoughtful enough even if you suggest where the recipient spends the money. If they can make Gift Rocket socially acceptable (by playing on the inherent problems with gift cards today) then I think it could be big.

klochner 16y ago

It's not any more ridiculous than facebook virtual gifts that cost money: "So I can pay facebook $1 to send my friend a virtual beer that he can't drink?" Both are arguably ridiculous to any (hyper)rational person, but people are not rational.

wallabe 16y ago
It's no more ridiculous than a normal gift card: "Wait, you paid $25 so I can have $25 that can only be spent in one location?" That's a cost right there...if flexibility had a price I'd bet it'd be >5%.
- deleted 16y ago
  [deleted]
- deleted 16y ago
  [deleted]
- DanielStraight 16y ago
  No more ridiculous than a normal gift for that matter. Giving a purchased gift at all is trading $25 for an inflexible $25.

old-gregg 16y ago

But that's the idea of a gift card, isn't it? Otherwise why not just be handing cash out to friends? If I want you to go cart-racing for your birthday, you're going cart-racing. No excuses. :)

zende 16y ago

I've heard similar feedback about gift cards, but I continue to receive gift cards from friends. All things being equal, I'd much rather receive a GiftRocket instead of holding onto and likely losing a $25 physical gift card