Every year thousands of gift cards are given for the holidays. They are convenient and easy to give. In 2008 people must consider carefully the type of gift card, where it is accepted, and make a wise purchase. Many stores that sell a wide range of gift cards display them near the check out. One word of caution here... it is possible for someone to pick up a card (particularly susceptible are VISA prepaid cards), record the card number and activation phone number, and then place it back on the rack. Then the clever con artist calls the activation phone number later on to activate it. If someone has purchased that card, it could be used up before its recipient gets a chance. Solution—Make sure you buy cards that do not have the numbers visible to the general public.
Recently many stores are announcing closings. What happens if the store closes? If the store has more than one location you may be able to use the card at another location. If this was the only store then you are likely to be out of luck. Recently two emails circulated lists of stores that may be closing some or all of their locations. Although the validity of the lists could be questioned, it does draw a deeper concern. Each year the BBB sees cases in Georgia and South Carolina of businesses closing their doors after the holidays and leaving unsuspecting gift card holders high and dry.
There are additional considerations to gift cards. Both Georgia and South Carolina require gift cards to post an expiration date on the card, if there is an expiration date. If there is no expiration date, then the card can be used until the money runs out. Also the card must have on it a phone number to check the balance on the card. Some cards have transaction fees that either apply from the first use or may begin or reoccur on a monthly basis at some point.
Here are some tips regarding gift cards:
Use it promptly
Stick with major chains or prepaid consumer charge cards (ie visa)
Find out about surcharges or transaction fees
Treat the card as cash
By using the card promptly you could avoid a disappointing discovery that the store is now out of business or the balance was eaten up with “charges” that kick in the longer you hold the card. Treat it as cash because a thief only needs a card number to make an on line purchase. By staying with chains or using a prepaid consumer credit card you can also avoid stores that leave you high and dry. Be safe and have a happy holiday.