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Shopping for gifts can be a real dilemma. Gift cards may be the answer: one size
fits all, and the recipients can get exactly what they want from a retailer or restaurant.
Different Types of Gift Cards
- Retail Gift Cards are sold by retailers and restaurants, and can be used
only with those merchants.
- Bank Gift Cards carry the logo of a payment card network like American Express,
Discover, MasterCard or Visa, and can be used wherever the brand is accepted.
New Rules for Gift Cards Effective Starting August 22, 2010
- Money on a gift card cannot expire for at least five years from the date the card
was purchased, or from the last date any additional money was loaded onto the card.
If the expiration date listed on the card is earlier than these dates, the money
can be transferred to a replacement card at no cost.
- Inactivity fees can be charged only after a card has not been used for at least
one year, and you can be charged only once per month. But you may be charged a fee
to buy the card or to replace a lost or stolen card.
- The expiration date of a card must be clearly disclosed on the card, and fees must
be clearly disclosed on the card or its packaging.
Tips for Buying Gift Cards
- Buy from sources you know and trust. Avoid buying gift cards from online auction
sites, because the cards may be counterfeit or may have been obtained fraudulently.
- Read the fine print before you buy. Is there a fee to buy the card? If you buy a
card by phone or online, are there shipping and handling fees? If you don't like
the terms and conditions, buy elsewhere.
- See whether any fees will be deducted from the card after you purchase it.
- Inspect the card before you buy it. Verify that none of the protective stickers
have been removed. Make sure that the codes on the back of the card have not been
scratched off to reveal a PIN number. Report any damaged cards to the store selling
the cards.
- Give the recipient your original receipt so they can verify the card's purchase
in case it is lost or stolen.
- Consider the financial condition of the retailer or restaurant.
- If you buy a card from a company that files for bankruptcy or goes out of business,
the card may be worth less than you had anticipated.
- If the business closes a store near the recipient, it may be hard to find another
location where the card can be used.
- A company that files for bankruptcy may honor its gift cards, or a competitor may
accept the card. Call the company or its competitor to find out. Even if the company
is not redeeming gift cards now, check back with them periodically; they may start
redeeming cards at a later date
Tips for Using Gift Cards
- When you get the card, read the card and any terms and conditions. Check for an
expiration date or fees.
- If it appears that the value of your card has expired, or that fees have been deducted,
contact the company that issued the card. They may still honor the card or reverse
the fees.
- Ask the person giving you the card for the card's terms and conditions, the original
purchase receipt, or the card's ID number; keep this information in a safe place.
- Use your card as soon as you can. It is not unusual to misplace gift cards or forget
you have them; using them early will help you get the full value.
- Treat your card like cash. If your card is lost or stolen, report it to the issuer
immediately. You may not recover any of the value that was on the card. Some issuers
will not replace cards that are lost or stolen, but other issuers will, for a fee.
You may need to show proof of purchase and the ID number on the card. Most issuers
have toll-free telephone numbers you can call to report a lost or stolen card.
Problems and Complaints
If you have a problem with a gift card, contact the company that issued the card.
If you can't resolve the problem at that level, you may want to file a complaint
with the appropriate authorities:
- For cards issued by retailers - contact the Federal Trade Commission or call
toll-free: 1-877-FTC-HELP. Or you may file a complaint with your state Attorney
General (for a list of state offices, visit naag.org).
- For cards issued by national banks - contact the Comptroller of the Currency's
(OCC) Customer Assistance Group by calling 800-613-6743 or sending an e-mail to:
customer.assistance@occ.treas.gov. The OCC charters, regulates, and supervises national
banks.
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