Gift Cards And Their Hidden Perils…And Benefits
Gift cards are incredibly convenient for everyone involved, whether you’re the giver or the receiver. Sure, the benefits to the giver are readily apparent; Holiday shopping is a nightmare, and there are few things more tempting than to grab the first cute gift card off of the racks between the magazines and the candy bars at the first available checkout counter. Slip it into an equally cute greeting card and… Done! The nightmare of shopping and choosing that perfect gift amidst throngs of other shoppers searching for that perfect gift as well is over for another year.
Gift cards are just as beneficial for the recipient for a number of reasons, HLN points out in a recent article. Most obviously is the fact that the receiver knows exactly how much the giver thinks of them in terms of what the gift was worth, because it’s spelled out for them on the receipt in dollars and cents. The buyer should bear this in mind, whether choosing a card offered by restaurants, department stores, specialized outlet chains, or credit card companies like Mastercard, American Express, or Visa. The recipient can go to his or her favorite store, or even to their favorite shopping website, and pick out whatever gift most appeals to them. Gift cards are famously popular with 62 percent of shoppers preferring them, specifically because cards reduce the likelihood of having to stand in the shopping returns lines after the holidays.
Both the gifter and the receiver should be wary, however. AJC reports criminals have now figured out that they can steal funds off of unpurchased gift cards, which will then affect the consumer down the road. Some ways in which this is achieved is to scratch off the silver bar on the backs of the gift cards to reveal the hidden security codes, as swell as peering behind the protective sleeve to copy the card’s assigned number. Once the card is loaded with funds at the time of purchase, the thieves then download and drain the funds before the receiver of the gift card can use it. Adding insult to injury, neither the stores nor the card issuers will take responsibility, forcing the recipient of the card to bear the burden. Experts recommend buying cards that are stored behind the register, where only store employees have access to the cards, prior to the moment of purchase.
Other pitfalls facing those opting for gift cards this holiday season are purchase fees and dormancy fees. It is important to read the the fine print with gift cards, as is the case with any purchase or financial investment, since not all cards are subject to these fees. Common with bank cards in particular are purchase fees – usually no more than $5.00 – which are charged at the time of purchase and sometimes when the card is reloaded with additional funds. Dormancy fees are often charged after a period of inactivity, usually after 13 months, and though fees may vary, they tend to average at $2.50 per month for inactive users.
Although gift cards are especially convenient in busy lifestyles, it is advised to select cards based on their features and to use the cards soon after they have been purchased to avoid additional fees and loss or theft.
A funnier take on gift cards arose with this story about Cards Against Humanity.
