Bank Gift Cards vs Merchant Gift Cards

Bank Gift cards are a very popular gift both to give and receive just for the convenience factor.

But what you don’t know about gift credit cards can spoil the fun.

Pay attention to the following questions and answers about bank and merchant gift cards and it could save you a little money and or hassle.

Q. Did you know that some bank issued gift cards still carry expiration dates? What??

A. Yes you heard right, you pay real money for a piece of plastic and they have the nerve to impose an expiration date.

Plain Vanilla gift cards like American express , Discover, MasterCard and Visa sometimes have “valid thru” dates. In that case , if a gift credit card expires, the cardholder must contact the issuer to obtain an extension of the expiration date…does that sound like fun to you?

Makes giving cash look pretty good , huh?

Under the new credit card act of 2009 , gift cards cannot expire in less than 5 years.

Q. What about fees? Are there any hidden fees associated with bank gift cards?

A. Credit card companies typically charge a fee of 3 or 4 dollars for gift cards. That’s right, you pay real money along with an extra 3 or 4 dollars for a convenience of giving a shiny bank gift card.

Most bank credit card companies also charge what is called a dormancy fee for cards that are not used within a 12 month period. The dormancy fee is usually around 2.50 per month.

Q. What about Merchant Gift Cards? Do they carry any hidden fees?

A. Merchant Retailers don’t charge fees for buying a merchant gift card. They just want to profit from the sale. They know that most shoppers spend a lot more than the value of the card when they make a purchase so retailers have an interest in making their gift cards as friendly as possible.

Q. What about redeeming the gift credit card in the store and online?

A. Except in a few cases, a gift card can be redeemed easily online or in store.

Tips for using gift cards

***If you can, register the gift credit card with the issuer so that you can check balance and also have recourse if it is stolen or lost.

***Use the gift card as quickly as possible…, lots of gift cards go unused just because people simply forget they have them. The gift card giver wants you to enjoy your purchases …so get out there and spend them.
exit bank gift cards ...visit home page