A record 196.7 million Americans shopped in stores and online during the 2022 five-day holiday shopping period from Thanksgiving Day through Cyber Monday, according to the annual survey released by the National Retail Federation and Prosper Insights & Analytics. The total number of shoppers grew by nearly 17 million from 2021 and is the highest figure since NRF first started tracking this data in 2017.
Consumers spent an average of $325.44 on holiday-related purchases over the course of the weekend, up from $301.27 in 2021. While shoppers indicated that the top gifts they purchased during the shopping period were clothing and accessories (50% of shoppers) and toys (30%), gift cards ranked third with 27% of shoppers indicating they purchased gift cards during the holiday shopping event. That’s no surprise, as gift cards are a popular and easy holiday gift that can be purchased in-store and in most cases online as well. Recipients love them too.
As convenient and popular as gift cards can be, your BBB reminds consumers and businesses that gift cards can carry risks too. Whether you’re buying a gift card online or grabbing one off the shelf at a store, shop carefully to make sure you and your gift recipients will have a joyous holiday experience.
Physical gift cards
Buying a physical gift card? Here’s some tips from your BBB to keep your purchase safe and intact:
Look for package tampering. No matter where gift cards are displayed in the store, thieves are known to remove gift cards from the display rack and record the numbers associated with that card, including the activation PIN. They can monitor and quickly use the funds once they see a card is activated.
Before purchasing a gift card, look carefully at the packaging for any tears, wrinkles, or other indications of tampering, and see if the PIN is exposed. If anything looks suspicious, it’s probably best to take a different card and turn in the compromised card to the store’s Customer Service Desk.
Research how to use the card. Not all retailers have the same policies when issuing a gift card. Check the fine print to see if there are fees associated with the card. Some typical fees could include transaction fees or inactivity fees. In some cases, an organization may charge a service fee to issue the card or a replacement card. Buying cards with too many fees or conditions can erode a card’s value over time, but there are some protections in place.
Under the Credit Card Accountability, Responsibility and Disclosure Act a gift card cannot expire until at least five years from the date it was activated. The law also places general limitations on fees. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. Some states have separate laws that provide added protection in certain circumstances.
Don’t delay in using the money. In addition to fees that a business may charge on an inactive card, the longer a card sits around the more likely a cybercriminal is to steal the balance.
Virtual gift cards
Before purchasing a gift card online, BBB recommends the following tips:
Know who you are buying from. Little-known websites advertise gift cards for popular retailers at steep discounts. These websites might be using these offers to steal payment card numbers or other personal information.
Also, be cautious about buying gift cards from online auctions because it is virtually impossible to tell whether the cards have any value remaining, whether they’ve been tampered with or if they’ve expired. Instead, go directly to the merchant and purchase a card from them.
Check the terms and conditions on a gift card. If you are giving a card to someone who wants to shop instore, make sure it can be used that way and not just online, and vice versa.
Consider the financial condition of the retailer. If you think the store may be on shaky footing, you may want to pass on buying a card. If a store closes, a gift card will likely have no longer have value for its recipient, even if the store files bankruptcy.
Whether buying in store on online, make sure you hold onto a copy of your purchase receipt and gift card receipts that include a gift card’s registration information. That will be very helpful in obtaining assistance should you or a gift recipient run into issues when using the gift card.
Receiving gift cards
If you’ve received a gift card, here’s some tips to keep in mind:
Shop only on secure sites. BBB encourages consumers to be sure that the websites where you buy gift cards are secure. A secure website will use “https://” in the website address of the pages where a shopper enters payment information.
Know who you are using to verify your gift card’s balance. Be sure you visit the merchant’s official website to check a balance on a gift card they offer. Be extremely wary of generic gift card sites. According to BBB.org/ScamTracker reports, some websites that claim to check your gift card balance are really a way to steal money off your card. These sites ask for your card’s ID number and PIN or security code. Then, scammers use the information to drain the money off your card.
Register your gift card. If the retailer allows the option to register the gift card, take full advantage. This makes it easier to protect the balance, that way you can report it sooner and potentially end up saving the money that is stored on the card. Change the PIN on the card.
Treat it like cash. If the card is lost or stolen, report it to the issuer immediately. Most issuers have toll-free telephone numbers to report a lost or stolen card — find it on the card or online.
If you believe you’ve been the victim of a gift card scam, report the situation to your local police department and immediately report the scam to the merchant or company that issued the card and ask if they can refund your money. Look for the issuers phone number on your card, or if the card has been lost, you can look it up online, but be sure you are collecting the contact information for the correct source and not a sound-a-like company.
BBB offers more holiday tips at bbb.org/holiday.
Michele Mason is president of the Better Business Bureau in Chattanooga.