With the holiday season right around the corner and the economy putting the
squeeze on budgets, many shoppers are going to be looking for the best gift
options this holiday season. For those looking to give gift cards to family and
friends, BBB is recommending that you do your research before purchasing a
gift card.
So far, in 2011, BBB has already received more than 440 complaints against
the gift card industry, a huge increase from the 33 complaints received in
2010. In some cases, consumers are disgruntled when they are given an
expired gift card with loaded cash that isn’t usable until the expiration date is
corrected. After sending the expired card in for replacement, the consumer is
left empty handed when the card fails to ever return to them.
“Consumers need to be on the lookout for gift cards that appear to be ‘open’
or out of their original package, and cards that state an expiration date that is
coming up or that has passed,” said Tina Waller, president and CEO of the
Better Business Bureau of South Alabama, Inc.. “Shoppers should be wary of
online auction sites that promise ‘full value guaranteed’ gift cards. It’s sites
like these that are prone to selling old, valueless cards that leave the gift
giver and receiver distraught.”
BBB recommends the following tips for both givers and receivers of gift cards:
Know the rules.
New federal rules that took effect in August of 2010 are designed to protect
consumers, and will restrict fees and affect gift card expiration dates. These
new rules apply to two types of cards: Retail gift cards, which can only be
redeemed at the retailers and restaurants that sell them; and bank gift cards,
which carry the logo of a payment card network like American Express, Visa,
or Mastercard and can be used wherever the brand is accepted.
Check it out.
Make sure you are buying from known and trusted sources. Always check
out a business at www.bbbsouthal.org. Avoid online auction sites, because
the cards sold there may be counterfeit or may have been obtained
fraudulently.
Read the fine print before buying.
Is there a fee to buy the card? Are there shipping and handling fees for cards
bought by phone or online? Will any fees be deducted from the card after
it is purchased?
Inspect the card before buying it.
Verify that no protective stickers have been removed, and that the codes
on the back of the card haven't been scratched off to reveal a PIN number.
Report any damaged cards to the store selling the cards.
Provide the receiver with back up.
Give the recipient the original receipt in case the card is later lost or stolen.
Also, before you buy retail gift cards, consider the financial condition of the
retailer or restaurant. A card from a business that files for bankruptcy or
goes out of business may be worthless. If the business close a store near
the recipient, it may be hard to find another location where the card can be
used. A business that files for bankruptcy may honor its gift cards, or a
competitor may accept the card. Call the business or its competitor to find
out if they are redeeming the cards, or if they will do so at a later date.
Treat the gift card like cash.
For receivers, it's important to report lost or stolen cards to the issuer
immediately. Some issuers will not replace cards that are lost or stolen,
while other issuers will, for a fee. Make sure to use gift cards as soon as
possible, because it's not unusual to lose or forget about them.
For more consumer tips you can trust, visit www.bbbsouthal.org.
Read the fine print before buying.
Is there a fee to buy the card? Are there shipping and handling fees for cards
bought by phone or online? Will any fees be deducted from the card after
it is purchased?
Inspect the card before buying it.
Verify that no protective stickers have been removed, and that the codes
on the back of the card haven't been scratched off to reveal a PIN number.
Report any damaged cards to the store selling the cards.
Provide the receiver with back up.
Give the recipient the original receipt in case the card is later lost or stolen.
Also, before you buy retail gift cards, consider the financial condition of the
retailer or restaurant. A card from a business that files for bankruptcy or
goes out of business may be worthless. If the business close a store near
the recipient, it may be hard to find another location where the card can be
used. A business that files for bankruptcy may honor its gift cards, or a
competitor may accept the card. Call the business or its competitor to find
out if they are redeeming the cards, or if they will do so at a later date.
Treat the gift card like cash.
For receivers, it's important to report lost or stolen cards to the issuer
immediately. Some issuers will not replace cards that are lost or stolen,
while other issuers will, for a fee. Make sure to use gift cards as soon as
possible, because it's not unusual to lose or forget about them.
For more consumer tips you can trust, visit www.bbbsouthal.org.
Life Insurance has plenty of benefits for you and your family in your absence. It ensures that the future of your family and near and dear ones is financially secured, as they will be able to use the proceeds from Alabama Life Insurance to pay for their mortgage, utility bills and last but not the least school tuition fees among many other things.
ReplyDelete