freegiftcard.info

5 Tips To Know About Your Gift Card Limits
By Lois Center-Shabazz

I gave a retail gift card to my nephew last year. My well kept 19- year old nephew usually feels he is being financially starved no matter how much money he is given. So the worry of the gift card expiring or incurring large fees was not my concern, he rushed to the store to use it the next day. What is my concern is that many people who buy and receive gift cards, be it, retail cards or bank cards, do not understand the limitations posed by these cards. This is evident from the ever-increasing complaints to consumer bureaus.

Most people don’t understand that when you purchase a gift card they are not necessarily equal to the cash paid for them over time. This is especially true of bank or mall gift cards. Mall gift cards are bank gift cards sold by a shopping mall complex.

To understand gift cards you should understand the following:

1. There Are Different Types
As mentioned before there are two types; the retail (store gift card) and the bank gift card (also mall gift card). There are marked differences between the two. Retail cards are the least expensive as far as fees are concerned, bank cards offer the highest potential for decreasing value over time due to the fact that many have excessive fees.

2. How They Are Used
Retail cards can be used at the store you purchased them at, and sometimes a sister store. Bank cards can be used anywhere bank cards are accepted and sometimes at ATM machines.

3. How They Make Their Money
Retail stores make their money from the purchase you make with your gift card. With bank cards its a whole different story. The bank cards make their money from the extensive fees charged for purchasing, owning, and using the card.

4. Fees Charged Can Be Hefty
Some retail gift cards charge a monthly non-use fee and will not replace lost or stolen cards, and may expire. Most bank cards charge a processing fee, a replacement card fee, an ATM fee, a telephone inquiry balance fee, a monthly maintenance fee, an expiration fee and some charge a fee to re-load the card.

5. You Can Counter The Fees
Before you buy a retail or bank card, read the fine print on the gift card, card jacket, or website. Understand the fine print and the cost associated with your particular card. Each card has a different set of rules.

Summary
Fees are usually charged with gift cards, much more so with bank cards than with retail cards. If you are given a gift card, use it right away. If you if you plan to give a gift card and you don’t think it will be used right away, give cash. Cash is still the least expensive, universally accepted gift.

Lois Center-Shabazz is the author of the three time award winning book, “Let’s Get Financial Savvy!” and the editor of the critically acclaimed website, www.MsFinancialSavvy.com