Gift Cards - Don't Fall Into The Traps

Gift cards can be INCREDIBLE gifts to give (and receive).  However, there can be some pitfalls with purchasing these types of cards to retailers.  Congress is currently working on implementing legislation which will protect consumers.  However, until that happens, there are some things you need to keep in mind when shopping.

Check the fine print for dormancy fees.  Some cards will charge $0.50 or $1.00 every month after "x" months lapse and the card has not yet been used.  You certainly don't want your $50.00 gift card to be only $48.00 simply because your receiver couldn't get to the store to make a purchase right away.

Be sure the card doesn't expire.  Some cards can actually expire -- like gift certificates.  Check the fine print on the gift card to be sure it won't lapse before it can be used.

Purchase your cards from a reliable retailer.  You can find gift cards for just about any store anywhere you shop.  These are completely safe to buy.  I would stay clear from online auction sites as they could be either stolen or fraudulent (or even both).

The FTC recommends that you check the card to be sure none of the protective stickers are missing.  If they are, you shouldn't purchase it and should report it to the store manager right away.

If you are ordering on-line or over the phone, watch for fees. Some stores assess a small fee just for you to buy the card.

Give the recipient the receipt to prove that it was purchased.  So, you may want to have the cashier ring up the card separate from any other purchases, but it could prove invaluable.

Lastley, you might even consider a Visa or Mastercard Gift cards as they can be used anywhere Visa is accepted and you do not run the risk of your store going bankrupt and your gift card becoming nothing more than bulk in your wallet. 

Follow these few tips and your gift card purchases will be smooth and seamless.  Now, for that fruitcake Aunt Maggie sends you -- sorry, but I can't help you there!