Tips for Buying and Using Gift Cards
Tips for Buying & Using Gift Cards
Gift cards have exploded in popularity as the alternative to Christmas shopping. While grabbing gift cards is an easy way to shop, selecting the right card requires a little research to make sure it holds the value intended, instead of purchase and maintenance fees eroding away the value.
"Gift cards are everywhere, but they are not the same. Read the fine print before you purchase. We found Visa gift cards at grocery stores that come with a $4.95 monthly maintenance fee after 12 months. That can quickly wipe out the value of the gift card," says Bill Hardekopf, CEO of LowCards.com. "It's no surprise that issuers are making these easily available for impulse purchases because these fees just add to their revenue. To protect the value of the card, make sure that you include the terms and conditions with it."
"Ideally, the recipient will use the card within the first 6 months, but a Consumer Reports survey shows that 19% of those who received gift cards in 2005 have not redeemed them. This is a good time to look in your wallet to make sure you don't have a forgotten or unused gift card that is about to expire or to receive an annual fee," says Hardekopf. "If the card has expired, contact the issuer. They may extend the expiration date for a fee."
Mall gift cards also seem like a great gift idea, but they carry their own fees. There is typically a $2 processing fee, and a $2 monthly maintenance fee after 12 months. The best deal for gift cards is to purchase them directly from the retailer. Most retailer gift cards do not charge service fees and their gift cards do not expire. Many provide online account access to check your balance. However, retailer ecards are only accepted for online purchases.
Keep in mind that many issuers and retailers treat gift cards like cash; if you lose it, they will not offer you cash or a refund. To protect yourself, record the card number and PIN from the card. Some retailers may still let you use this for online purchases, or they may offer you a replacement card (American Express charges $5.95 for a replacement card).
Websites, such as Cardavenue.com, provide a gift card marketplace for buying, selling, and trading gift cards from a wide variety of retailers. eBay has a long list of gift cards for bidding, but there are multiple eBay fees charged to the seller. "These sites are a good way to get cash for a gift card you may not use, or trade for one that you will use," says Hardekopf.
LowCards.com ( http://www.lowcards.com ) is an independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over six years.
Gift cards have exploded in popularity as the alternative to Christmas shopping. While grabbing gift cards is an easy way to shop, selecting the right card requires a little research to make sure it holds the value intended, instead of purchase and maintenance fees eroding away the value.
"Gift cards are everywhere, but they are not the same. Read the fine print before you purchase. We found Visa gift cards at grocery stores that come with a $4.95 monthly maintenance fee after 12 months. That can quickly wipe out the value of the gift card," says Bill Hardekopf, CEO of LowCards.com. "It's no surprise that issuers are making these easily available for impulse purchases because these fees just add to their revenue. To protect the value of the card, make sure that you include the terms and conditions with it."
"Ideally, the recipient will use the card within the first 6 months, but a Consumer Reports survey shows that 19% of those who received gift cards in 2005 have not redeemed them. This is a good time to look in your wallet to make sure you don't have a forgotten or unused gift card that is about to expire or to receive an annual fee," says Hardekopf. "If the card has expired, contact the issuer. They may extend the expiration date for a fee."
Mall gift cards also seem like a great gift idea, but they carry their own fees. There is typically a $2 processing fee, and a $2 monthly maintenance fee after 12 months. The best deal for gift cards is to purchase them directly from the retailer. Most retailer gift cards do not charge service fees and their gift cards do not expire. Many provide online account access to check your balance. However, retailer ecards are only accepted for online purchases.
Keep in mind that many issuers and retailers treat gift cards like cash; if you lose it, they will not offer you cash or a refund. To protect yourself, record the card number and PIN from the card. Some retailers may still let you use this for online purchases, or they may offer you a replacement card (American Express charges $5.95 for a replacement card).
Websites, such as Cardavenue.com, provide a gift card marketplace for buying, selling, and trading gift cards from a wide variety of retailers. eBay has a long list of gift cards for bidding, but there are multiple eBay fees charged to the seller. "These sites are a good way to get cash for a gift card you may not use, or trade for one that you will use," says Hardekopf.
LowCards.com ( http://www.lowcards.com ) is an independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over six years.
Links to this post:
Create a Link
<< Home