Once in a while I come up with an idea that’s truly golden, and it just happened again.  This is great.  An idea that could potentially save consumers billions of dollars while at the same time eliminating clutter from their countertops, pockets, and purses.  It will simplify and enhance the gift-giving experience by offering a far wider range of choices to the recipient (always a good thing) and reward the giver with the knowledge they have contributed to improving the conditions of people throughout the world while reducing the national debt.  And it could turn a tidy profit for someone willing and able to make it happen.  The idea is the ‘Universal Gift Card’.

To understand the potential here, just look at the current state-of-affairs in the gift card industry.  It’s bewildering to realize that the instant a gift card is purchased the seller is given a totally interest-free loan of unknown duration and can expect that over time they will have to pay back only part of it, in a currency of their choosing.  How much they have to pay back is affected by several factors:  some cards expire,  some are lost,  most of them end up in the garbage can with unredeemed value,  and then there are the fees.  But if I can make a crude estimate (exact figures are not easily obtained), close to 20% of these partially secured, no-interest loans are simply wiped from the books.  Given this situation, all we need for a bonanza is an alternative card which has the same  ‘I’m a Thoughtful Gift’ credibility as the old ones and which is usable anywhere  for anything.  Tapping into this potential will take time because the entrenched interests – large retailers and credit card companies – will resist accepting the ‘Universal Gift Card’ (for obvious reasons), but as it’s logic and beauty become more apparent the new card should soon be carried and honored by all.

The basic business model is simple.  Money from the purchase of a ‘Universal Gift Card’ is given directly to the U.S. Treasury (minus 5% for operating expenses) with an understanding that when the card is presented to them they will pay the bearer 80% of it’s initial cost in cash.  The Treasury keeps 10% with the stipulation that one-third will fund small-business no-interest loans to aid low income workers in developing countries around the world.  Backed by this promise it should be no problem to find lots of people selling goods and services who would be willing to accept the ‘Universal Gift Card’ as payment since they will get to keep 5% of the card face-value for themselves in addition to any profit already included in their prices.  The total 20% devaluation exactly equals the estimated devaluation already happening, but it will now be offset by an immediate reduction of the national debt (6.67%), valuable international community development (3.33%), increased revenue for smaller local retailers and service providers (5%),  and a system that is simpler and less cluttered (5%).    The final piece of the formula is the creation of a Health Care system to supplement Medicare using the interest earned while the 80% is held by the government prior to reimbursement (effectively functioning like a short term zero-interest T-Bill).  All these numbers are approximate and some of the benefits might be offset by increased operating expenses, but there is a lot to work with here. Of course, as I mentioned before, there will be initial resistance from large retailers and credit card companies who offer their own gift cards and so the available marketplace will be somewhat limited.  But if you also take into account the joy of giving and receiving a gift as thoughtful as the UGC then there is every reason to believe the resistance will steadily erode until everything on Earth is accessible.  Imagine the possibilities!

The success of this idea depends primarily on the widespread acceptance of the ‘Universal Gift Card’ as a thoughtful and meaningful gift that has all the attributes of current gift cards.  Looking at the situation logically, I see every reason to think that with a little marketing magic this is easily achievable.  The new cards will be used only once (like a coupon) and those accepting them will pay any change to the user in cash, thus making the overall transaction simpler and tidier.  There will be no need to record data on the new cards so they can be made lighter and more flexible, and increasing their size slightly should cut down the loss rate dramatically.  The colorful and visually stimulating UGC will be every bit as attractive as any of the competing gift cards now available.  Printed in several denominations, the new cards will be convenient for the giver as well as for the user.  And at those times when the expression of love is essential, artistic envelopes will be available in just the right size.  Combine all this with the huge amount of social benefit created and it seems to me ‘Universal Gift Cards’ will not only be accepted but also honored and greatly appreciated by all who receive and use them.

It will be possible for those with a UGC to immediately convert their gift into cash either by making a minimal purchase and getting change or by going directly to the bank and cashing it in (change may be in the form of smaller denomination UGCs).  At first glance this may seem a bit tacky and unappreciative of the thought behind the giving, but there will be little incentive to ‘cash in’ and I have to believe most people are sensitive enough of the givers feelings to hold onto their card until they find something they want more than money.  Looked at from the other side, the ‘Universal Gift Card’ becomes even more precious because it constantly reminds the recipient to appreciate the meaningfulness of everything around them.   Those who want immediate cash are welcome to it but they can have even more if they really open themselves to the possibilities, knowing what’s in their wallet.

This can’t miss.  Billions of dollars are spend on gift cards every year and the amount is increasing steadily.  Millions of small businesses with wonderful products and services now have minimal access to the current ‘gift-card’ market.  The National Debt needs to be lowered.  Old people need better health care.  Emerging entrepreneurs around the world can use a little more financial support.  The ‘Universal Gift Card’ is an idea whose time has come!