Anyone else reconsidering paying DCL with gift cards?

[AgentMama]

We have quite a bit of money tied up in Disney gift cards right now and aren't certain when we will re-book to use the funds. In the past, it has seemed like a worthwhile risk to save a couple of dollars here and there through gift card savings. But now, it seems like an interest free loan to Disney with no clear path as to when it will be safe for us to re-book. We'll carefully consider if/when we decide to pay trips with gift cards again. Anyone else feeling this way?

 

[cruisehopeful]

Yes. While I haven't booked with gift cards, I use gift cards for my on board charges and my many visits to Disneyland. Now, I am wishing I could use the money on the gift cards for something else.

 

[Ben E N]

Not to be negative about it, but I'm sure Disney figured this sort if thing out when they allowed places like Target to sell their giftcards for 5% less. 95% in the hand is better than 100% in the bush.
Could you try reselling them on a giftcard selling site if you need the cash soon? If not, you can just hang on to them and use them in the future. Consider it a prepaid unnamed vacation that you can look forward to.

 

[T & R]

I do not know if this is true or not but I thought Disney Cruise Line is a different company than Disney the theme parks. So if DCL files for bankruptcy protection after this crisis is over, then they do not have to return my cruise money (I am fully pre-paid for our cruise in October). So all that money I paid out to DCL using gift cards is just gone. Is that how it works? Is this a realistic possibility? Sorry in advance if this has already been discussed somewhere else.

 

[MomOTwins]

This cruise was the first one we had used gift cards on. I did consolidate and save them based on what people have said here, but yeah, I don't think I'll do that again.

 

[mom4fun]

Has anyone got money put back on their gift cards yet, even just for incidentals?

 

[Marc D]

We have quite a bit of money tied up in Disney gift cards right now and aren't certain when we will re-book to use the funds. In the past, it has seemed like a worthwhile risk to save a couple of dollars here and there through gift card savings. But now, it seems like an interest free loan to Disney with no clear path as to when it will be safe for us to re-book. We'll carefully consider if/when we decide to pay trips with gift cards again. Anyone else feeling this way?

Gifts cards are always an interest-free loan. There is no economic reason for the clients to use them unless they offer a discount. If they do, it’s because they prefer to have your money in their pocket ASAP, with the random possibility that you will not get the service in the end. That system can only function in an economy where trust in general and in the specific company you are fronting the money to is present. The same is true of any deposit made to obtain goods at a later date.

The current situation is extraordinary to say the least. Trust and stability will come back eventually. People will restart to take calculated monetary risk to pay less in the end.

 

[cvjw]

I have always been too scared to pay for cruises with gift cards just in case we had to cancel. This current situation just reinforces my belief.

I will still utilize discounted Disney gift cards for dvc dues and incidentals on dcl and dvc trips. I will just purchase the gift cards right before our dues need paying and right before our trips.

 

[FigmentSpark]

I do not know if this is true or not but I thought Disney Cruise Line is a different company than Disney the theme parks. So if DCL files for bankruptcy protection after this crisis is over, then they do not have to return my cruise money (I am fully pre-paid for our cruise in October). So all that money I paid out to DCL using gift cards is just gone. Is that how it works? Is this a realistic possibility? Sorry in advance if this has already been discussed somewhere else.

If you used your credit card and this happens, you would file a chargeback with your issuer who would then get your money back, either from the remains of the company as a creditor or from their acquirer (bank DCL uses to accept credit). If you used a gift card, I don't know what your recourse would be.

 

[sethschroeder]

You possibly can sell those gift cards for a majority of the money. Since Disney allows people to move around GC funds themselves online there is less risk compared to a traditional gift card.

I am thinking 8% off the price? Since you can get Target cards for 5% off anytime?

In my situation we would use them eventually anyways so its not the end of the world if we had gift cards.

 

[CaLuCa]

I put our Mediterranean for 6 people on GC, all carefully combined. I was feeling so smug with myself from having scored the BJ's deal of 8%, plus our card cash back. DH was pushing for a cash refund until I reminded him it all goes back on the GC. Granted, we are FL residents and can use it to get APs, which we let go of this year to justify the cruise. But I'd much rather go on a cruise. I still plan on going on one, as early as it is deemed safe. I'm not one of those crazy huge crowds of people you see on the beach either. We've been at home since the 13th. Definitely social isolating, no playdates, just DH going to work. But I'm really holding out hope some sort of life will return late summer/fall. Only time will tell.

 

[SL6827]

I do not know if this is true or not but I thought Disney Cruise Line is a different company than Disney the theme parks. So if DCL files for bankruptcy protection after this crisis is over, then they do not have to return my cruise money (I am fully pre-paid for our cruise in October). So all that money I paid out to DCL using gift cards is just gone. Is that how it works? Is this a realistic possibility? Sorry in advance if this has already been discussed somewhere else.

Could this really happen? Could the two grand I have on a cruise for 2021 be lost if they file for bankruptcy?

If so, couldn't the same happen with funds that were put on a cruise with a credit cards too?

 

[HuskyGal]

Yes, I did use discounted Disney gift cards to pay for our now rebooked cruise. It’s part of the reason I’m not canceling it for the refund. That and my family loves disney cruises. Not a huge deal since we are Disney obsessed and will surely go on some kind of Disney vacation again. But it makes me pause enough to say, no, I won’t do that again.

 

[Quellman]

I do not know if this is true or not but I thought Disney Cruise Line is a different company than Disney the theme parks. So if DCL files for bankruptcy protection after this crisis is over, then they do not have to return my cruise money (I am fully pre-paid for our cruise in October). So all that money I paid out to DCL using gift cards is just gone. Is that how it works? Is this a realistic possibility? Sorry in advance if this has already been discussed somewhere else.

Could this really happen? Could the two grand I have on a cruise for 2021 be lost if they file for bankruptcy?

If so, couldn't the same happen with funds that were put on a cruise with a credit cards too?

It wouldn't matter if you paid with gift cards, cash, credit card. Your payment in advance for a service not yet received means Disney owes you a debt in the amount paid subject to any agreed upon rates (for example you cancel after the PIF window).

If a company goes out of business due to bankruptcy, generally customers are the last to collect. Other businesses would collect first (any unpaid port fees, fuel charges, food suppliers, etc).

If a company is restructuing their debt, it depends on how the resettlement of debt is done.

I think by the time that Disney files for bankruptcy there will be much much more to have worried about.

 

[LAX]

It wouldn't matter if you paid with gift cards, cash, credit card. Your payment in advance for a service not yet received means Disney owes you a debt in the amount paid subject to any agreed upon rates (for example you cancel after the PIF window).

If a company goes out of business due to bankruptcy, generally customers are the last to collect. Other businesses would collect first (any unpaid port fees, fuel charges, food suppliers, etc).

If a company is restructuing their debt, it depends on how the resettlement of debt is done.

I think by the time that Disney files for bankruptcy there will be much much more to have worried about.

Are we talking/worrying about Disney the corporate behemoth going bankrupt (seeking bankruptcy protection) or DCL? I am not familiar with corporate structuring of Disney and its divisions nor bankruptcy laws, but can DCL by itself files for bankruptcy while the parent company remains in business? This makes a difference to some people as getting refunds even to Disney GCs can still be used at other Disney entities (as long as other Disney divisions are still in business) while cruise credits are obviously tied to DCL. If Disney the parent company files for bankruptcy, then there are definitely much more serious issues to worry about.

LAX

 

[Rob1872]

I'm also in the position of having about $10,000 locked up in Disney gift cards if I take a refund on the cruise and cancel the WDW stay before the cruise. The BJs discount no longer seems like such a great deal. Oh well. Eventually the gift cards will get used.

 

[SL6827]

Right, if the parent company was to go under completely then ya I guess I would be out the two grand. But true, I imagine if it got to that point that would be a least of my concerns. I don't see that happening right now, but I am concerned about maybe the DCL part of it. I will just keep an eye on things and if I come to the point where I think I need to cancel in order to get access to my funds I will do so.

 

[spiders]

I have never understood the gift card buying. It seems it takes an awful amount of time to then trade real money for fake money. Considering that many credit cards offer 2-3% in rewards, the extra 2-3% is really not worth the hassle but that's me.

 

[Rob1872]

I have never understood the gift card buying. It seems it takes an awful amount of time to then trade real money for fake money. Considering that many credit cards offer 2-3% in rewards, the extra 2-3% is really not worth the hassle but that's me.

For a family of 4 on a 7 night Eastern, I was saving about $500 extra buying discounted gift cards over just using a rewards card. That was worth it (until the world decided to end).

 

[LAX]

I have never understood the gift card buying. It seems it takes an awful amount of time to then trade real money for fake money. Considering that many credit cards offer 2-3% in rewards, the extra 2-3% is really not worth the hassle but that's me.

While 2-3% discount is definitely not worth the hassles (and potential risks as some of us now face), some CC promos can increase potential savings to 10% or more, especially if one can manage to stack discounts. It varies from person to person how much of a discount is worthwhile.

LAX