During the 2005 holiday season, consumers reportedly purchased more than $18 billion worth of gift cards. The Federal Trade Commission warns consumers that gift cards, whether purchased from a retailer or a financial institution, may come with strings attached.
In particular, consumers should know that some gift cards have expiration dates; others have fees that can lessen the cards value, including activation fees, transaction fees, monthly maintenance fees, and inactivity or non-use fees.
Tips for careful consumers:
• Read the fine print before you buy. If you do not like the terms and conditions, buy elsewhere.
• When buying a card, ask about expiration dates and fees. This information may appear on the card itself, on the accompanying sleeve or envelope, or on the issuers Web site. If you do not see it, ask for it. Make sure that whatever the salesperson tells you is in writing.
• Treat gift cards like cash. If your card is lost or stolen, report it to the issuer immediately. You may be out the entire amount on the card. Some issuers will not replace the cards, but others will replace them for a fee.
