While we all know that rebates are simply worked into the overall equation of making a sale, when I buy something that has a rebate it feels like "found money". It is exciting because by the time you actually receive your rebate 4-6 weeks after submitting it (or longer) you've usually already paid for whatever you bought and it feels like an unexpected gift.

I remember in the old days, you'd submit a rebate form and then receive a check in the mail. As good and as close to cold hard cash as it gets. Nowadays, though rebates are a complex business unto themselves and actually ever seeing a check or cash in hand is unlikely.

Before the holidays my cell phone died and I had to get a new one ASAP. So I went over to my local AT&T store (since that is my cell phone service provider) and checked out the selections. Nothing is every priced as-is anymore, everything comes with a rebate and a service contract. Nevertheless I chose a new phone and submitted my rebate form to get $50 back. Well, yesterday I finally received my rebate in the form of an AT&T Rebate Visa Card. What a pain in the butt. By the time I figure out where I can actually use it and then attempt to use the full amount in no more than 1 or two places, this sudden windfall of money is no longer as exciting as it once was. And the myriad of rules I need to follow to actually get my money quite frankly annoys me. Apparently I'm not alone. Pocketables has a whole article called "Trouble using AT&T Tilt rebate (Visa debit card)" and shares:

Those involved in the original lawsuit, which was filed in June 2006, had mentioned that the card carried lots of restrictions, expired in 4 months, and required jumping through hoops to actually use, but with no explanation of what these restrictions and hoops were, I assumed that I wouldn't run into any problems. I mean, how hard could it be to use a Visa card?

Quite hard, actually.

Although the card bears the Visa logo and can therefore be used "anywhere Visa is accepted":

* It cannot be used to obtain cash at a bank or ATM.
* Merchants must run the card as a credit, not a debit, transaction.
* When purchasing goods that exceed the available balance on the card, the difference must be paid using an alternate method first. Then the merchant must process the card for the exact amount available on the card. For example, AT&T suggests that customers tell merchants, "Process this card for $22.41."
* It cannot be used to pay for gasoline at the pump; it must be taken inside the station.
* Restaurants may add 20% to the total authorization placed on the card to account for tip.

This is not inspiring to me. I do so much shopping online, yet I don't even want to try and leap that hurdle. So rather than fully being able to spend it my way, I'll have to stick to some major store in person and try and spend it all at once.

It simply seems like a dishonest way to do business and advertise. Little known to me, I'm not the only one who had this thought. Apparently AT&T remains in legal waters regarding this practice according to the Consumer Watchdog:

A lawsuit charging that Cingular (now AT&T) engages in false and misleading advertising when offering "rebates" on cell phones may proceed, a federal court has ruled.

The suit, brought under California's consumer protection laws, states that the cell phone company promised to pay rebates to people who bought cell phones, and advertised discounted prices that reflected the promised rebate. But instead of getting a rebate check, purchasers received a "VISA Reward card" that can only be used under numerous restrictions and for a limited period of time. By the time consumers found out they were not getting a rebate check, it was too late to cancel Cingular's wireless service without paying an Early Termination Fee of $175.

Sometimes saving money just seems more painful than fun. Another potential pitfall of rebates is not even sending it in the first place. Deep in the archives of Queercents, I found these great tips so you "Don't Blow the Rebate":

1. Pick a "Rebate Boss" Designate a single person in your household to do the rebates. Choose the person who is most likely to succeed of course ;) In our house, that’s LaLa. She fills out the forms, makes the requisite copies, sends the rebates, and keeps a tickler file. It just helps us to have the responsibility lie with one of us specifically.

2. Just Do It Don’t put off filling out the forms or making copies, do it immediately. If there is something you need that will take more time, get everything else ready to go. I used to procrastinate and then the rebate would get lost in the clutter and poof. LaLa gets everything together as soon as possible: makes the copies, gathers all the pieces, including the envelope while she’s motivated by the idea of the rebate money.

3. Keep Track and Follow Up Once our rebates are sent out, we put them in a folder and wait for the money. Every month or so we check the folder (and/or online if possible). We’ve never had to follow up on a rebate that didn’t show up, but the Travel Gnome has (successfully so).

So whether you choose to play the rebate game or not, it is definitely a case of buyer beware.

Paula Gregorowicz, owner of The Paula G. Company, works with women who are ready to create their lives and businesses the way the want rather than how they were told they "should". She is the author of the 12 part eCourse "How to Be Comfortable in Your Own Skin" which you can download for free at her blog http://www.coaching4lesbians.com.

To get the latest word on personal finances from an LGBT perspective and Paula's practical coach approach to the topic check out Queercents http://www.queercents.com.

Are you a small or solo business owner who wants to be comfortable in their own skin online via a website that is a true reflection of who you are and what your business is about? Paula's signature down to earth and "plain English" approach to website design and consulting can help. Visit http://www.paulagwebdesign.com to download the free successful website planner.