Gift Cards: Christmas Friend or Foe?
posted 11:07 pm Tue December 25, 2007 -
88% of shoppers this Christmas season said they planned to give at least two or more gift cards. The state of Maryland is one of a handful of states that bans expiration dates for gift cards, but the law doesn't apply to pre-paid bank cards. In Virginia and D.C., there are no expiration protections except a law in Virginia that gift cards must clearly print the expiration date. Some stores, like Target, responded to customer's complaints by selling gift cards that never expire.
Another rule to look out for: does your card lose value? Bankrate.com warns many gift cards from the major credit card companies losing values one year after issue and some go down to a zero balance in as few as 24 months.As for using the card online, some stores like Best Buy have already started their on-line sales.
The most important rule, use the card sooner than later. Best Buy reported last year they made $43 million off selling gift cards recipients never redeemed.
If the card expires, most issuers will let owners reinstate the value for a fee, says Ben Woolsey, vice president of marketing for CreditCards.com. Those fees typically range from $5 to $15.
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