Florida Consumer E-Newsletter |
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Download PDF version [907K PDF]
A Message From the Commissioner...
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Dear Friends: Holiday shopping, as I’m sure most of you know, can be trying on your mental as well as your financial status. With every passing fad and gadget, each year it seems more and more daunting to try to find the perfect gift. As a result, gift cards have become increasingly popular among consumers due to their ease of use and the virtual guarantee of a happy recipient. The Federal Trade Commission reports that during the 2005 holiday season, consumers spent $18 billion on gift cards! |
Most consumers are unaware of the restrictions that some businesses place on their cards. For example, some cards can be used only at the retailer’s store locations; others can be used at any retailer and online. Some have expiration dates. Some let the user “reload” or add money to the balance on the card. And some have fees, like activation fees, transaction fees, monthly maintenance fees, inactivity or non-use fees, replacement fees for lost or stolen cards or balance inquiry fees.
Remember, we're here for you. Our Consumer Hotline, calling within Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832), will answer any consumer related questions you may have or direct you to the most resource for assistance. You can also visit us online at for additional consumer information.
Sincerely,
Commissioner
Gift cards are a “one-size fits all” gift ensuring the recipients can get exactly what they want. But before you buy a stack of gift cards from your favorite retailer or your local financial institution, realize that there may be some strings attached. The gift card may be subject to expiration dates, service fees, maintenance fees or inactivity fees. Below are some tips that should help you on your gift card purchasing journey.
TIPS FOR BUYING GIFT CARDS
Store cards sold by retailers usually are issued free of charge. But banks often charge a fee to buy their cards. Some bank gift cards come with a Personal Identification Number (PIN) that lets the user withdraw cash from an ATM. Here are some additional tips to review before you buy a gift card:
Read the fine print before you buy. Sometimes if you are a returning customer or if you purchase the card through your personal bank, they will waive the fees. If you don’t like the terms and conditions, buy your gift cards elsewhere.
When you’re buying a card, ask about expiration dates, purchase exceptions and all applicable fees. This information may appear on the card itself, on the accompanying sleeve or envelope, or on the issuer’s website. If you don’t see the information, ask for it. If the seller is reluctant to put the terms or conditions in writing — or says it isn’t necessary — shop elsewhere. If the information is separate from the gift card, give it to the recipient to help protect the value of the card. It’s also a good idea to give the recipient the original receipt to verify the card’s purchase in case it is lost or stolen.
Consider fees for the recipient. If the retailer has high fees you may want to consider buying somewhere else or maybe a generic gift card from a credit issuer such as Visa or MasterCard.
TIPS FOR USING GIFT CARDS
If you’ve received a gift card, review these tips to ensure you receive the full value that was given to you:
Read all the terms and conditions as soon as you get the card and check for an expiration date. If your card expires before you’ve had a chance to use it or exhaust its value, contact the issuer. They may extend the date, although they may charge a fee to do that. If you didn’t get the card’s terms and conditions, the original purchase receipt, or the card’s ID number, ask for them from the person who gave you the card and make sure to keep them in a safe place.
Gift cards are just like cash. If you lose them and don't have a photocopy, you've just lost money. So don't wait. Make photocopies of your cards now. You never know when you could misplace them. If you lose your card, most retailers will issue you a new one -- if you have a photocopy of the original card. But keep in mind most retailers will charge a fee to replace your lost or stolen card.
For more consumer information, or help finding the right resource for assistance, give us a call today at 1-800-HELP-FLA (435-7352) calling within Florida, 850-488-2221 outside of Florida, 1-800-FL-AYUDA (352-9832) ¡Español!, and a consumer specialist will be happy to assist you.
