Q. I plan to purchase gift cards for many of my Christmas gifts this year. Some cards are better than others; some having high purchase fees, expiration dates, etc. Does BBB have advice on gift cards?
A. Gift cards can be a convenient gift-giving solution for the relative or friend who is hard to please or who lives far away. Better Business Bureau advises consumers to check the fine print on gift cards and make sure security seals are intact before buying them for holiday gifts.
Consumers find gift cards an easy way to shop and love to give – and get – gift cards. But buying cards with too many fees or conditions can erode their value. You may be better off giving cash or a check instead of a gift card.
Gift card sales are expected to exceed $131 billion this year, with a third of sales occurring during the holiday season. More people see them as an attractive way to remember loved ones while avoiding the hassle of finding the right size or saving on shipping costs. According to the National Retail Federation six out of 10 consumers say they like to receive gift cards. However, more than $2 billion in gift card value goes unused every year.
The Credit Card Accountability, Responsibility and Disclosure Act, which took effect in 2010, provides some protections to consumers who receive gift cards, such as requiring that card balances remain valid for five years after issuance or after they were last loaded with money. Fees and expiration dates may still apply however, and fees can erode the value of the cards.