Read the Fine Print Before Giving Gift Cards
Every family has at least one. Those people who are so incredibly finnicky (or so incredibly elusive about what they want and need) that you are praying not to get their name in the family gift exchange name draw. Enter the gift card. Traditionalists claim they are impersonal and the number of adults who do not spend gift cards within a year of receipt increased from 19 to 27 percent this year, according to Consumer Reports. Nevertheless, gift cards are more popular now than ever before in our busy society and major credit card companies have jumped on the band wagon.
USA Today featured a terrific article about holiday gift cards, encouraging creativity in giving. Some of the non-traditional ideas tossed out include gift cards to a massage, a golf game or even admission to a national park. These are ideal for people who just don’t like retail shopping, the most popular form of gift card.
Gift cards from Visa, American Express and MasterCard are versatile and can be spent on online bill pay, gas station pumps, grocery stores or practically anywhere else. They are, however, laden with fees that can eat up the available cash. There is a purchase fee ranging anywhere from $2 to $10, USA Today reports. Shipping and handling can also apply. There is also a nominal monthly non-use fee if the card still has a balance after a year or so. There is also typically a fee of $5 to $10 to reactivate the card’s balance if it has expired. The articles points out that some states legally prohibit expiration dates on gift cards: California, Florida, Maryland, Massachusetts and Nevada.
Consumer Reports recommends reading the fine print before buying gift cards, and trying to find cards with no expiration date, shipping charges or fees. Gift card recipients should also read the card’s fine print to understand the terms and conditions. This, along with strategic placement of the card in a visible place, will help ensure the card’s value does not go to waste.
