Consumer Services

Giving With Plastic

The National Retail Federation predicts gift cards will once again be the most requested gift this holiday season among 54.9 percent of consumers polled. However, there are both pros and cons to purchasing a gift card.

On the up side, they are easier to buy and ship than traditional gifts. Some say it helps them stick to their budget. Others are keen on the fact that recipients won't have to return unwanted merchandise. Some of the negatives associated with giving plastic are that it may seem impersonal, or it may be easier to disguise how much you spend on someone if you manage to find an item on sale. Expiration dates or added fees tagged on to gift cards are additional concerns.

If you decide to go the gift card route this season, here are some pointers to help steer you in the right direction.

• Know the difference between gift card policies from retails and banks. Under Florida law, store-issued gift cards do not expire and do not have any fees that would reduce the value of the gift card. On the other hand, gift cards issued by banks, malls, and credit card companies are more likely to add expiration dates and tack on activation, maintenance, inactivity and transaction fees. Some bank-issued gift cards even charge a fee for simply checking the balance.

• Buy from reputable sources. Avoid buying gift cards from online auction sites as these cards may be stolen or counterfeit or may have been obtained fraudulently.

• Read the fine print before you buy. While Florida law prohibits expiration dates or fees that would reduce the value of the gift card, the card may be subject to other terms and conditions not prohibited by law.

• Give the recipient the original receipt. Some retailers are able to reissue a lost gift card if consumers have kept the original purchase receipt. Many retailers also allow gift card recipients to register their card through the store's website, which enables them to check their balance online and receive a new card if they lose or misplace the original one.

• Ask about purchase exceptions. Make yourself aware of any terms of use that may vary regarding purchasing via a store's website versus the physical store location.

• Treat gift cards like cash. If a card is lost or stolen, report it to the issuer immediately. Most issuers have toll-free numbers to report lost or stolen cards.

If you are torn between giving a gift card or an actual present, there is a middle ground. You can personalize a gift card by packaging it with other small items that you know a person would like, such as combining movie tickets with popcorn and candy or enclosing a pair of earrings with a gift card for a clothing retailer.

If you are the recipient of a gift card and encounter a problem while using it, first report the issue to the retailer or financial institution that supplied the card. Because not all matters can be resolved at that level, consumers may also file a complaint with the appropriate authorities.

For cards issued by retailers, consumers may contact the Federal Trade Commission at http://www.ftc.gov or call toll-free: 1-877-FTC-HELP.

For cards issued by national banks, consumers may contact the Comptroller of the Currency (OCC) Customer Assistance Group by calling 1-800-613-6743 or sending an e-mail to: customer.assistance@occ.treas.gov. The OCC charters, regulates and supervises national banks, some of which issue gift cards.

Complaints may also be reported to the Miami-Dade County Consumer Services Department Mediation Center by calling 305-375-3677 or visiting www.miamidade.gov/csd.

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