Consumer Services

Gift Cards - To Give or Not to Give?!

Before you purchase or if you receive a gift card this holiday season, there are some things you should consider.  Different gift cards have different terms and conditions.  Below are some of the most important conditions of which you should be aware:

Fees – Make sure you know whether fees apply to the gift card. Some gift cards may not have fees, but others do charge various types and amounts of fees. Often times these fees are deducted directly from the value of the card.  The types of fees that are most prevalent include:

• Purchase Fees that are charged when you buy a gift card. These are in addition to the money that you pay in exchange for the value of the card.
   
• Monthly Fees or other regular charges such as service fees, administrative fees, or maintenance fees that are deducted from the gift card balance.
   
• Inactivity Fees that apply if you do not use the card within a certain period of time. For example, a monthly fee is deducted from the gift card balance if the card’s value has not been used up within six months from the date of purchase.
   
• Transaction Fees for using the card. These fees may apply to all transactions, certain types of transactions, or for a high number of transactions.
   
• Miscellaneous Fees for balance inquiries, replacing a lost or stolen card, or other services related to the card.

Expiration Dates – It is important for you to determine whether there is an expiration date for the gift card and what that expiration date is. If a card expires, you may not be able to use it and the card provider will keep the unused balance on the card. If there is an expiration date, you should consider finding out whether you can request for the card to be reissued with a new expiration date and what the fee is for reissuing the card.

Lost or Stolen Cards – It is prudent to find out the policies for lost or stolen cards. Can you get a replacement?  Would there be a fee for doing so? If someone else uses the card after it is lost or stolen, would that money be credited to the replacement card? Keep the receipt for the gift card purchase, and write down the card number. These may be needed if you or the person receiving the card needs a replacement.

Where You Can Use the Card – Certain gift cards can only be used at the store where it was purchased or at related stores. Other gift cards, like those connected to the VISA or MasterCard systems, can be used at many locations around the world. Some gift cards can even be used to get cash at an ATM.

Problems and Complaints – If your gift card is lost, not working properly, or you have some other problem using it, is there a convenient way to quickly resolve the issue?

Always check to see if the gift card or its packaging includes information or provides a toll-free number or website for information about fees, expiration dates, lost/stolen cards, places of use, and problems/complaints. If you are the purchaser of a gift card, provide that information to the recipient of the gift card.