GIFT CARD FAQ

Thank you for your inquiry about LOGAN FARMS Gift Cards.

The following FAQs cover most of the questions we are asked about the Logan Farms gift card program. We usually share this set of FAQs with customers either purchasing gift cards, or a recipient of a gift card who has questions about redeeming the value of the card. Keep in mind there are two types of LOGAN FARMS gift cards, a Product gift card (Diamond, Bronze, Silver) and a Cash gift card (re-loadable specified cash amount.) We will also address the terms that apply to the particular type of gift card, including the expiration policy.

Q: Why doesn’t the Product gift card tell me a monetary value, when I use the online balance inquiry link (or ask a Logan Farms employee)?

A: A Product gift card (Diamond, Silver, or Bronze) is considered to be a ‘voucher’ for a product, and one is exchanged for the other. No cash value is assigned, and therefore no cash change is given. Your Product gift card will include a list of choices, depending on the level of the gift card: Diamond gives the holder 7 choices of product; Silver gives 4 product choices; and Bronze gives 2 product choices. You can find the available product choices listed HERE. The companies or individuals that purchase numerous gift cards for the recipients of these delicious gifts enjoy special volume discounts, which is one reason the Product Gift Card does not show a cash redemption value. These cards cannot be used for sandwiches, catering or lunch items, but may be redeemed only for the gourmet meat products that are listed under each card’s category.

Q: How do Cash cards work?

A: Cash cards can be loaded with a value, then the recipient may use all, or a partial amount of that value towards a purchase of anything in the LOGAN FARMS store. The recipient may also reload the card if desired. The drawback to the Cash cards versus the Product cards is that we do not give discounts on the Cash cards, whereas the Product cards enjoy substantial discounts based on the quantity purchased

Q: Why do the gift cards expire after 5 years?

A: There are a few very good reasons for this. In the interest of simplicity, we will try and keep our discussion of it concise.

Economic: First, about five years ago hams sold for around $45. Today, they retail for about $64. Redeeming voucher-style gift cards older than 5 years puts us at a distinct economic disadvantage, primarily because the cost of the products we sell (pork, poultry, beef) can fluctuate dramatically from year to year. This trend (increased costs) always moves upward on the financial scale (against our favor), and never down.

Financial: Secondly, when un-redeemed gift cards stay on the books from year to year, they reside on our balance sheet as a ‘liabilities’. When they are redeemed, and only when they are redeemed, are they listed as ‘revenue’. This will be true for any business offering gift cards. Assume a business sells, say $200,000 in gift cards each year, and $10,000 of these cards end up being un-redeemed each year. After 5 years, that would mean that there would be $50,000 in ‘outstanding debt’ a business could rack up on its financial statement. LOGAN FARMS has been in operation since 1984. This would result in quite a large chunk of liabilities we would be saddled with, should we just never expire them, so we expire these cards every five years, and release ourselves from this debt.

Federal Law: Several years ago the US Congress adopted national standards that would protect gift cards consumers, the “Credit CARD Act of 2009,” and under that statute a gift card must remain current and active for a minimum of five years. We clearly state our policy to any company or individual wishing to purchase gift cards from us. The 5-year duration of the gift cards is an important aspect of the terms and conditions agreed to by both parties at the time of sale.

Regulatory: Lastly, and always important, there are state and Federal laws governing the sale of gift cards. The IRS and many state tax authorities clearly define that a tax must be paid on the gift card at the time it is redeemed. LOGAN FARMS bears this responsibility, then, upon redemption. Should un-redeemed cards float around without expiration, the government cannot collect the taxes it deems due, so we expire un-redeemed cards after 5 years, and then pay taxes to the government on that amount.

Q: Why aren’t the expiration dates printed on the cards?
A: We print these cards by the thousands, and sell them in small batches as we go. We may purchase a large print run of several thousand per location (for good printing price breaks), and use them all gradually over a period of a couple of years. That is why dates are not printed on the cards. The card life begins once activated, and these activations happens many times throughout a print batch of cards. [You can quickly find the status of any LOGAN Farms Gift Card by entering its number at THIS website.] A large sleeve of cards can last us several years. We have even tried using stickers before, and recipients tend to just peel them off (or even make their own stickers, and change the date!) We can, however, offer to print expiration dates on the card holders themselves (the envelope sleeves they come in). We have noticed that quite a few folks end up throwing these away and just keeping the card in their wallet, which may result in the same dilemma. We are happy to do this for a corporate customer if you like. Just ask your salesperson.

We hope this has helped answer most questions you may have about the LOGAN FARMS gift card program. We wish you and your family all the best.

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Richmond, Texas

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