With the fast pace of today’s world, our lives are constantly busy and we find it difficult to buy a gift for a loved one. Your job or other commitments may prevent you from buying that special gift. Or maybe you are not a buyer. Having trouble finding current, high-quality ideas? So maybe a gift card is the answer.
However, one decision to make when purchasing a gift card is whether to purchase and gift a store gift card or brand logo (Visa, MasterCard Logo) gift card. With a store card, your loved one or family member can redeem the card in fewer locations and you may not have to worry about expiration dates or hidden fees. With a brand logo card, it can be redeemed at numerous retailers, but there are more likely hidden fees that will lower your balance if the card is not within the year.
While most cards do not expire, shoppers can be stuck with inactivity fees if they are not used for a certain period of time. With new laws recently passed, the law requires issuers to not impose an inactivity fee for at least 12 months of inactivity. So good advice, use your gift ASAP. A search fee is a purchase fee. At the time of a purchase or after the purchase, the issuer can withhold up to a dollar or a nominal fee on the transaction. Then several cards return the fee to the balance, but some do not. Read the terms and conditions and see if there is an implied purchase fee.
If you don’t live close to the person you’re giving the card to, you may want to look for a card that offers free shipping or an e-card option, which means you can send the gift card via email. Many department store cards offer e-card service. Be sure to familiarize yourself with the process because some e-cards allow the recipient to shop online only from the store’s website. One great feature that all cards have is that the gift card balance can be verified online on the card’s website.
Retailers trust shoppers to buy something for a few dollars less than the value of the gift and not bother to charge the rest. To keep in mind, if the purchase is greater than the amount of the balance, make up the difference with cash. Merchants make millions of dollars from people who lose, misplace, or never use their gift cards.
If you are concerned that a member of your family might lose the gift card, you may want to look for a card that has been lost or stolen. Most cards offer to replace the card or funds after a loss. Take advantage of this opportunity, but limitations may vary and fees may apply. Write down the identification number or card number that is printed on the card and keep it in a safe place. You will also need the store receipt for a refund or replacement card.
If you’re buying a gift card, be careful about fees and expiration dates. If you receive a gift card, be sure to spend it wisely and before you lose it or forget you have it.