Gift Cards: Easy Gift or Easy Rip-Off?
If you’re like many consumers, you’ve either been given or have given gift cards out as presents to your family and friends. But sometimes gift cards aren’t worth what they’re supposed to be. Did you know that an estimated $5 billion on gift cards goes 
unspent due to fees and, in turn, reverts back to the company who issued the card?
Get the most out of your gift cards and avoid potential problems by understanding how gift cards work and what fees may be keeping you from enjoying the full value of the card. Colorado is looking into a proposed law that will halt fees that would drain the card’s balance.
The proposed law would get rid of fees associated with:
- Not using the card
- Using the card
- Checking the balance
- Activating the card for use
In addition, the law would also allow consumers to request cash back when a card’s balance drops below $5.
How to protect yourself:
- Buy from sources you know and trust. Gift cards purchased from online auction sites may be counterfeit or illegally obtained.
- Read the fine print before you buy – if you’re uneasy about the terms, don’t buy it.
- Inspect the card before you buy to ensure that none of the protective stickers have been removed and that the pin number is covered and not already scratched off.
- Give the recipient the original receipt to verify the card’s purchase in case it gets lost or stolen.
- Consider the financial condition of the business and whether it has filed for bankruptcy. If the business closes, the recipient might end up with a card that’s not worth its original value.
- Treat the card like cash. If you lose it, report it to the issuer immediately.
- Use the card as soon as you can to ensure that you get the full value.
If you have a complaint regarding gift cards, contact the company that issued the card. If you’re not able to get help or get your issues resolved, you can file a complaint with Federal Trade Commission, Colorado’s Attorney General or the Comptroller of the Currency’s Customer Assistance Group.
- For cards issued by retailers, contact the Federal Trade Commission at ftc.gov or call toll-free: (877) FTC-HELP.
- You can also file complaints with Colorado’s Attorney General by phone at (800) 222-4444 or e-mail at attorney.general@state.co.us
- For cards issued by national banks, contact the Comptroller of the Currency’s Customer Assistance Group at (800) 613-6743 or e-mail the group at customer.assistance@occ.treas.gov.
.gif)