Welcome to BigScreenBiz.com

To help raise funds to start our theatre, we are going to sell membership packages at various levels. Part of these packages includes a gift card good for x amount of movies.

When are distributor fees and taxes paid on these gift cards?

On our gift certificates we don't consider it a sale until it is redeemed. Prior to that it is a liability on the books.

Any "Gift Cards," Passes, or such documents should be made as counterfeit-proof as possible since they are ultimately the equivalent of money, since nasty tricks can be played on your theatre if suddenly many of them turn up that are obviously bogus. There was an indepth discussion of the means and methods in a previous thread here; it would pay to find it and read it BEFORE you commit to any design.

[This message has been edited by jimor (edited June 22, 2005).]

Leeler and Jimor bring up good points.

We use a plastic "credit card" style gift card. It has no information on it, other than its serial number. All information, including names, addresses & purchase levels are stored on the database at our offices. Were someone to counterfeit the card, they wouldn't have anything to work with, other than the current status of the account, and they wouldn't know that from looking at the card. We can block or move any "money" from one card to another, so it would be easy to deal with any lost or stolen cards.

As leeler says, the sale hasn't been made until the card is redeemed. When the gift card is purchased, the buyer is basically just moving money from his wallet to yours, without actually getting anything in return (a purchase). When he does buy something, you're moving that "money" from your wallet to the boxoffice til.

The film percentage is owing the studio for whatever performance the ticket is printed.

<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by rodeojack:
We use a plastic "credit card" style gift card. It has no information on it, other than its serial number. All information, including names, addresses & purchase levels are stored on the database at our offices.<HR></BLOCKQUOTE>

I apologize, I didn't archive before I asked the question on Concession Stand.

Have gone on your website, love your layout and music as well as the "Rechargeable Gift Cards". Will you share suppliers, the who and how's of what you do. Certainly appears to be the way to go for us.

Thank you!

Sure.

We use the RTS ticketing system. It allows for mag cards to be used at any sales terminal. We have all terminals set up with credit card wedges, so the gift cards can also be used/sold/recharged anywhere. The cards can also be used for points/rewards programs.
www.rts-solutions.com


We get our mag cards throuth Plastic Printers. They have a wide selection of designs that you can adapt for your own use... or you can design your own. Pricing for each card depends on number of colors and number of cards purchased.
www.plasticprinters.com

Think of it this way, money is never put "in the card." It's put in an account on the Point of Sale (POS) system. The card is the key that unlocks that account.

So the mag stripe doesn't contain the customer's name or the dollar amount or anything else but the information that identifies it to the POS system as one of your cards and that identifies the account/card serial number.

Also, the POS system should give you the necessary journal entry information to enable you or your accountant to apply the dollars properly. Just remember, the money isn't yours until the customer uses the card to make a purchase. Until then, you're holding his money for him.

[This message has been edited by Alan_G (edited August 21, 2006).]

Also be aware. Many states have laws on gift cards / certificates that are never redeemed. Abandoned funds are not yours to keep. And must be turned over to the state unclaimed property division. Each state has their own rules. So it is best to check with your states Unclaimed Property Division.