The popularity of gift cards continues to grow. They seem to be the perfect choice around the holidays for those who are hard to buy for, for those whose presents must be mailed and for those on your “small gift” list, like mail deliverers, or business associates. Additionally, surveys indicate that most say they like to receive gift cards, so it’s an easy way to make a friend happy.
Still, there are things to watch for when buying or receiving a gift card.
Giving gift cards
Scammers have discovered ways to insert themselves into your gift card transactions. Take precautions when buying gift cards, especially when the cards are on display racks at retailers.
Carefully examine the card and its packaging for evidence of tampering. Crooks sometimes record a card’s PIN and put it back on the shelf. Once the card is purchased, they will use it online before the person you are giving it to has had their chance. Look for cards in thick plastic casing. Examine the packaging for tampering, and look at the back of the card to be sure that the PIN number hasn’t been exposed and that no protective stickers have been removed.
Save the receipt when you purchase the card and give it to the recipient. That way if the card is stolen a replacement might be issued by the store. When possible, register the gift card with the store’s website. This give protection should the card be misused, and it protects the card’s value if stolen.
Look up the Better Business Bureau profile at bbb.org, when purchasing a card from retailers that are not well known. Also use caution when buying from online auction sites. Scammers sometimes overstate the value of the cards being sold so the buyers aren’t getting what they paid for.
Reputable companies will not ask for personal information when you purchase a gift card. If they ask, consider it a red flag and don’t tell them anything that’s none of their business. ID theft is always a threat.
Think about whether the card’s recipient will be able to use the gift card easily. Do they have a store nearby or can they use it for online purchases? Also remember to consider the viability of the business itself. Is there any chance it will be going out of business? The card could be useless in the case of a business bankruptcy or closing. Check the FTC website at ftc.gov for tips in such situations.
Receiving gift cards
Here’s what to remember when you are given a card:
▪ · Carefully read the card’s conditions and check the expiration date. If it looks like the card has expired or that fees have been deducted, contact the company. They may still honor the card or reverse the fees.
▪ Ask the giver for the receipt and keep in a safe place.
▪ Use it quickly. Stashing it away can mean forgetting about it until it value is diminished. Millions of dollars are lost every year by gift cards not being redeemed.
Denise Groene is director of the Better Business Bureau of Kansas. The BBB can be contacted at 800-856-2417 or bbbinc.org.