CertifiChecks Inc. Closes Its Doors

CertifiChecks Inc., a gift card supplier located in Dayton, OH, has closed. 

The company sold gift certificates to chambers of commerce, companies, and individuals across the United States and has now filed for chapter 7 bankruptcy.

The company had flourished as businesses and chambers of commerce offered CertifiChecks that could be redeemed at local businesses.  Now that the company has gone under, many are wondering who will foot the bill for the unredeemed gift certificates, if indeed anyone does so.

Employees of a hospital in Illinois have some $30,000 in unredeemed certificates.  Families of The Army & Air Force Exchange Service, which the Exchange Service has agreed to reimburse as a result of the closing, currently hold certificates worth $700,000.

Many smaller companies and chambers of commerce, though, withlimited budgets will be unable to reimburse certificate holders.  CertifiChecks could not be reached for comment.  A notice on their website informs businesses not to deposit the checks as they will simply be returned.  Instead, the company instructs businesses to send the checks to CertifiChecks for a possible reimbursement.

Some certificate holders are reluctant to send away the checks for fear of giving up a form of ownership.  This closing has caused numerous problems, some which have yet to be uncovered.  Chambers of commerce are worried that when more people learn they cannot use the certificates, they will demand compensation not from CertifiChecks, but from the chamber itself.