Top Five Questions About Gift Cards
Gift cards are a very popular way to give a gift to someone. You don’t have to worry about size, color, or individual taste. In this case, one size fits all, as long as you pick a store or restaurant that the recipient likes.
However there are a few things you need to think about or decide on before you purchase a card. The following are some of the most asked questions concerning gift card purchasing.
What value do gift cards come in?
The answer to that question depends on where you buy the card. Some merchants set a beginning price of $25.00, with the ability to go higher than that in nearly any increment. Some businesses might have a lower minimum and some more expensive establishments might even have a higher minimum. It’s something you will need to ask before you buy. I received a $5 gift card from Starbucks at Christmas that was just the right amount for one coffee drink.
How long is the gift card valid?
This too depends on the place the card is bought. Some businesses have a one year limit, with others having a five year limit. One thing you can be sure of, there will be a limit. Quite a few of the cards will have a decreasing value starting with several months after purchase. A gift card should really be redeemed as quickly as possible after receiving it to get the full benefit of the card.
In the US there are new Federal Regulations on gift cards that will go into place on August 2010. This new law insures that the card must not expire for five years and that no fees can be assessed if the card is used within the first 12 months. If you have gift cards that were issued before August 2010, use them. There are some gift cards that may become null and void when the new regulations go into effect.
Can I get my money back if the card is lost or stolen?
The answer to that question is usually a definite NO. Gift cards are normally cash cards not registered to a specific name but to a card ID number. Anyone can use them. You need to think of a gift card as though it were cash in hand. If you lose cash, you’ve just lost it-no one pays you anything for it. The same is true with a gift card. By the same token, if you find one that still has a balance on it you might as well use it because there isn’t any way to trace it back to a specific person.
How do I check my balance?
This is fairly easy as most cards can be read by a cashier. If the card is for a specific business you would need to check with a cashier in that particular store or a branch of that business. If it is a gift card that can be used anywhere any cashier should be able to scan it and tell you the balance. Sometimes there is a number or website on the back of the card where you can call or go online to check balances.
Does all the card value have to be used at once?
That answer is a general no. But it might depend on the amount that is left on the card. If the balance left is only a few dollars, by the time you get around to using it again the few dollars may have decreased to a few cents or nothing at all because of “no-use” fees or other charges.
In most states in the United States the establishment issuing the card can make up their own rules and regulations. They can even change those rules after you’ve bought the card and not bother to tell you of those changes. They can charge an interest on the card and deduct that interest when the card is used. And as explained above, the card can have an expiration date even if that wasn’t specified when the card was purchased.
Some of these business practices will be managed by the new federal government regulations, but not all of them. If you are spending very much money-or any money- on a gift card you really need to get some written commitments concerning the card.
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