Dec 02 2007
If you buy or receive gift cards
If you decide to offer a gift card or receive one this holiday season, make sure you know the conditions associated with the card. Gift cards are a financial bonanza for the retailers. They get to keep the money and earn interest on that money until you start using the card.
There are several types of gift cards. The store specific card and the general purpose card. As its name implies, the store card can only be used at a specific store or through the store’s website. A general-purpose gift card from Visa, MasterCard or American Express may be used almost anywhere those cards are accepted. Most likely a store specific card will have less fees than a general purpose card. Please check the following items in order to maximize your use of the card:
- Do check for the expiration date on the card. Be sure to use your card before the expiration date or you may be out of luck. If it can be renewed, you may be charged a renewal fee.
- You may be charged with a shipping and handling fee when ordering online.
- In addition to the above mentioned fees, you may have to pay a service fee for the “priviledge” of ordering the card online.
- Will there be a monthly maintenance fee? If there is, you better use the card right away.
- Can you check easily your card balance? Is there a toll free number? Make sure to keep all receipts associated with the card as a backup.
- Is the card replaced if lost or stolen? Will there be a replacement fee?
- Can you transfer the card to another person or apply the balance as payment to a credit card balance?
Most gift cards are not redeemable for cash. If you ask the credit card company to send you by check the rest of the balance, you can be sure you will be charged another fee for that. Should you want to pay for an item worth more than the remaining balance on the gift card, you will need to bring cash or a check. For an online purchase, most internet merchants do not accept two forms of payment for just one purchase. Be sure to check where you can shop with the gift card. Some cards can only be used in-store and not online or vice versa.
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