The Dark Side of Gift Cards, Coupons, and Prepaid Cards: What They Don’t Want You to Know

Wazzup Pilipinas!?

We've all been there: You pull out a gift card, perhaps one from a distant birthday, and head to a store eager to make your purchase, only to be met with an unfriendly or dismissive attitude. The cashier may give you a few excuses as to why you can't redeem your gift card, why it doesn't work with certain items, or even why it's "only good for clearance items." It feels like a scheme designed to frustrate you—one that leaves you feeling helpless and disillusioned with the very concept of prepaid cards, gift cards, and coupons. Unfortunately, this is not an isolated incident.

While many businesses honor gift cards and prepaid cards, treating customers with the respect they deserve, there are far too many others that subtly—or not so subtly—use their gift card systems in ways that don't always have the customer’s best interests at heart. The business model itself, while convenient and often lucrative, can feel more like a manipulation rather than a thoughtful gesture.

The Genius Business Model Behind Gift Cards

To understand why this happens, let's take a step back and look at how gift cards and prepaid cards function as a business model. When a company sells a gift card, they receive payment upfront—essentially, the customer has already paid for goods or services, but the company hasn’t delivered them yet. It's an interest-free, collateral-free loan that can only be spent within the company's ecosystem. In a way, it’s like a store-issued currency, with no expiration date (often) and no way to convert it back to cash.

Think about that: When you buy a gift card, you're essentially giving the company an interest-free loan that they don’t have to repay unless you redeem it. This setup allows retailers to operate without the burden of regulations or the complexities associated with banks and public companies. There's no need to worry about stock issuance, reserves, or strict oversight, which makes this industry a trillion-dollar giant, ripe for manipulation.

The Breakage Phenomenon

The truly insidious side of this model, however, comes in the form of breakage. Breakage refers to the percentage of gift cards or prepaid cards that are sold but never redeemed. That’s right—many people purchase gift cards, only to forget about them, misplace them, or never get around to using them. And the company keeps the money without ever having to deliver the goods. For example, in 2021, Starbucks reported $155 million in non-taxable profit from unused gift and loyalty cards alone. Think about that number for a moment—$155 million just sitting there, in customer funds that will never be claimed.

This unclaimed money, while not always maliciously manipulated, can be a tempting revenue stream for less scrupulous businesses. By constantly changing terms and conditions, increasing friction in the redemption process, or offering a subpar customer experience, some companies make it intentionally difficult for customers to redeem their gift cards. In this way, they rely on breakage to increase their profits.

Real-Life Experiences: The Frustrations of Prepaid Cards

We've all encountered the frustrations that come with trying to redeem a gift card or prepaid card, especially when systems suddenly change or become more restrictive. Take, for instance, a personal experience with a prepaid card I had been using regularly for nearly 10 years. One day, without any notice, the system was updated, and my prepaid card was no longer accepted. Despite a significant balance left on it, the establishment informed me they could only accept another form of payment.

What followed was a complicated process that included long waits, phone calls, and tedious forms, all designed to migrate my funds to a new platform. It was a huge inconvenience, especially considering how long I had been a loyal customer. And this isn’t just a rare occurrence. Similar issues are popping up with frequent flyer miles, where customers face endless loops of error messages, hoping they’ll give up in frustration.

So, What Can We Do About It?

The gift card and prepaid card industry is a massive and lucrative sector, but it’s also one that heavily relies on customer loyalty—and often, that loyalty isn’t reciprocated. Here’s what consumers and businesses alike can do to address the darker side of the industry:

For Consumers:

Use Prepaid Cards Quickly: Don’t let money sit on prepaid cards. If you’ve been given a gift card or purchase one yourself, use it as soon as possible. If it’s not being used, it could become a forgotten liability.

Avoid Storing Money on Prepaid Cards: Don’t leave a balance on a prepaid card that you may never use. If a store doesn’t offer value that exceeds what you’d get with cash, it’s not worth storing money in their system.

Consider Credit Cards with Rewards: Rather than using gift cards or prepaid cards that offer little to no return, opt for credit cards that provide rewards or cash back—just make sure to pay them off in full each month to avoid high interest rates.

For Businesses:

Treat Prepaid Customers Like VIPs: Gift cards should be treated as good as cash. Customers who invest in these cards should feel like they are getting a high-value experience and should be able to redeem them with ease.

Prevent Breakage: To minimize unclaimed gift cards or rewards, businesses should introduce more transparent terms and make the redemption process easier, not more difficult. Ensure the customer experience remains at the forefront.

Escrow for Prepaid Funds: When prepaid cards hit a certain threshold, companies should be required to hold those funds in escrow until they are used. This would prevent companies from treating prepaid funds as their own money and ensure customers get the value they paid for.

Conclusion

Gift cards, coupons, and prepaid cards have become ubiquitous in the modern marketplace, but behind the convenience lies a darker side. While they can be useful and offer value to consumers, there are elements of the business model that exploit customers in subtle but impactful ways. The sheer scale of unclaimed gift cards, the changes to redemption processes, and the general treatment of prepaid customers as liabilities rather than assets can create a frustrating experience for many.

As consumers, we can take steps to protect ourselves by using prepaid cards promptly and seeking out options that provide more tangible rewards. At the same time, businesses should recognize the power of loyalty and provide a fair, transparent system that truly rewards their customers for the money they’ve invested. Only then can the gift card industry fulfill its promise of convenience and value for all.

The ₱33-Billion Senate Building Controversy: A Towering Symbol of Misplaced Priorities

Wazzup Pilipinas!?

The construction of the new Senate building in Taguig City, envisioned as a beacon of Philippine progress, has become a stark emblem of extravagance and misplaced priorities. With costs initially pegged at ₱8.9 billion, the project has ballooned to an eye-watering ₱33 billion, including land acquisition and furnishings. This escalation, alongside an additional ₱4.2 billion in the 2025 national budget, has ignited public fury, particularly as the nation battles deep-seated socio-economic challenges.

A History of Excess and Escalation

Originally championed by previous Senate leadership, the project has been controversial from the outset. Senate President Francis Escudero recently suspended construction to reassess its necessity and costs. He described the expenditure as “shocking and in bad taste,” ordering a comprehensive review to explore cost-cutting measures and ensure transparency.

The project’s financial trajectory—more than tripling from initial estimates—has raised red flags about inefficiencies and potential mismanagement in handling large-scale infrastructure endeavors.

Public Outrage: Voices from the Ground

Filipinos, grappling with economic hardships, have taken to social media and public forums to express their frustrations:

“Mas maganda pa ang Pasig City Hall, which cost less than ₱10 billion,” one commenter pointed out, criticizing the Senate building’s exorbitant price tag.

“Imagine how many hospitals or schools this money could have built,” lamented another, highlighting the stark contrast between national priorities and the government’s focus on institutional grandeur.

Others openly questioned the necessity of an opulent building for just 24 senators, given the country’s pressing needs in healthcare, education, and housing.

These sentiments underscore a growing disillusionment with government spending, with many seeing the Senate building as a symbol of excess amid widespread poverty.

Missed Opportunities: The Cost of Misaligned Priorities

The ₱33 billion allocated to the Senate building represents a significant missed opportunity to address the nation’s critical needs:

Healthcare: A world-class hospital could have been built to serve underprivileged communities.

Education: Thousands of classrooms or even entire schools could have been constructed, ensuring better access to quality education.

Affordable Housing: Repurposing the old Senate building into residential units could have alleviated the housing crisis for urban poor families.

Such potential uses underscore the stark disconnect between governmental priorities and the urgent needs of its citizens.

Accountability and Transparency: A Wake-Up Call

Senator Alan Peter Cayetano, chair of the Senate Committee on Government Corporations, has called for a detailed breakdown of the project's expenses, demanding transparency and accountability.

"Every peso spent must be justified," Cayetano emphasized, adding that the project serves as a wake-up call for all government agencies to practice fiscal prudence and responsibility.

As public scrutiny intensifies, there is growing demand for an investigation into the project’s financial management to identify inefficiencies and potential corruption.

Unicameralism: A Renewed Debate

This controversy has reignited discussions on the relevance of a bicameral legislature. Many critics argue for a unicameral parliament, suggesting it could streamline legislative processes, reduce redundancy, and save billions in public funds.

Countries like New Zealand and Denmark operate effectively with a single legislative chamber, leading many to question the necessity of maintaining a costly Senate for only 24 members.

Lessons from the Pasig City Hall

The stark contrast between the Senate building’s budget and other government projects has become a key talking point. For instance, the Pasig City Hall, which reportedly cost less than ₱10 billion, is cited as a model for cost-effective public infrastructure. Critics argue that such projects exemplify how careful planning and efficient execution can deliver high-quality results without excessive spending.

Conclusion: A Monument to Misplaced Priorities

As the Philippines contends with poverty, an underfunded healthcare system, and crumbling educational infrastructure, the ₱33-billion Senate building stands as a glaring contradiction to the nation’s urgent needs. While physically imposing, it risks becoming a lasting monument to government excess and misaligned priorities.

The suspension of construction offers a critical opportunity to recalibrate and redirect resources toward initiatives that truly benefit the Filipino people. Moving forward, citizens must demand greater accountability, transparency, and a shift in focus from extravagance to essential services.

The question remains: Will this building symbolize a turning point in fiscal responsibility or be forever etched in history as a testament to wasteful spending in a time of need? The answer lies in the hands of the nation’s leaders and its people.

Rosmar Tan: Fame, Fortune, and the Burden of Responsibility

Wazzup Pilipinas!?

Rosmar Tan, a Filipino vlogger and entrepreneur, has carved out a significant space in the online and business world. As the founder of Rosmar International and a social media personality with millions of followers, she represents the modern-day influencer success story. However, with great fame comes scrutiny, and Rosmar's journey has not been without controversy.

From Humble Beginnings to Multi-Millionaire CEO

Born Rosemarie Peñamora Tan on February 12, 1994, in Lucena, Philippines, Rosmar displayed entrepreneurial spirit early on. A graduate of Far Eastern University with a degree in medical technology, she ventured into business at 19, starting with a pet care line inspired by her bulldog's skin condition. That small business grew into Rosmar International, a thriving skincare brand that cemented her status as a self-made millionaire.

With additional ventures in the restaurant industry, pet care, and real estate, Rosmar's portfolio reflects her relentless drive and ingenuity. Her social media platforms, especially TikTok, have further propelled her influence, with over 20 million followers and billions of views.

The Highs and Lows of Influence

While Rosmar's success is undeniable, her online presence has also been marred by controversies that reveal the challenges of being a high-profile influencer.

Persona Non Grata in Palawan

In June 2024, Rosmar and fellow vlogger Rendon Labador were declared persona non grata in Palawan following a public confrontation with a local government employee in Coron. The incident, which stemmed from a critical social media post about them, drew backlash for what many saw as an abuse of their influence. Critics argued that the duo used their platforms to humiliate rather than address issues constructively.

Insensitive Social Media Post During Typhoon Kristine

In October 2024, Rosmar faced another wave of criticism for a tone-deaf social media post during Typhoon Kristine. While Bicol residents struggled with the storm's devastation, she shared a message reflecting on her comfortable life, unintentionally drawing a stark and insensitive contrast. The backlash led her to delete the post and issue an apology, but the incident left a lasting impression on her critics and followers alike.

The Emergency Room Incident

More recently, Rosmar's decision to visit the emergency room for a routine ultrasound sparked another online debate. She posted photos of herself on an ER bed, sharing her excitement at hearing her baby’s heartbeat for the first time. However, medical professionals and netizens criticized her for occupying an ER bed meant for urgent cases. A doctor commented on her post, emphasizing the need to reserve emergency services for critical situations. The comment sparked discussions on healthcare ethics and the responsibility of public figures to model proper behavior.

The Double-Edged Sword of Social Media

Rosmar’s controversies highlight the power and peril of social media. Platforms like TikTok and Facebook amplify influencers’ voices, but they also magnify their missteps. As a public figure, Rosmar's actions are scrutinized, and her every post has the potential to inspire or offend. This duality underscores the importance of sensitivity and accountability in her role.

The Responsibility of Being an Influencer

The backlash Rosmar has faced isn't just about her actions; it reflects broader societal frustrations. From healthcare mismanagement to the perception of privilege, her controversies touch on deeper issues. As someone with significant reach, Rosmar has the unique opportunity—and obligation—to address these concerns thoughtfully.

Moving Forward

Despite her missteps, Rosmar remains an influential figure. Her entrepreneurial achievements serve as an inspiration, proving that hard work and determination can lead to success. However, her journey also serves as a cautionary tale about the responsibilities that come with influence.

As Rosmar continues to navigate her career and public life, the hope is that she learns from her controversies and uses her platform for greater good. By balancing personal expression with public accountability, she can reshape her narrative and continue to thrive in the ever-evolving world of social media and business.

Conclusion

Rosmar Tan's story is one of ambition, resilience, and lessons learned. While she has faced criticism for her actions, she also has the power to transform these experiences into meaningful change. As she moves forward, the world will watch to see how this entrepreneur and influencer continues to evolve—and whether she can rise above her controversies to leave a lasting, positive impact.