Tis the Season: Tips For Buying and Using Gift Cards

By Linda Bock

Gifts cards are just so easy to give, people like getting them, and they are a snap to wrap.

But are gift cards the best option?

According to Consumer Reports.org , new regulations over the last few years have made gift cards safer than ever, “But giving a gift card comes with so many drawbacks that we don’t recommend it.”

However, with Christmas just days away, it becomes even more tempting to buy gift cards.

Holiday spending on plastic and digital gift cards will hit a new record, with the average person projected to spend $174 on gifts cards, up from about $163 last year, according to a national survey by the National Retail Federation.

Before you buy gift cards, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know about the different types of gift cards and tips for buying and using them.

• 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.

Tips for buying gift cards

When you shop for a gift card, the FTC recommends that you:

• 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 haven’t 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

If you have a gift card, be smart about how you use it:

• 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’s 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.

Jamaica Plain Patch wants to know if you like to give and receive gift cards. Please leave your comments in the section below.