Florida Consumer E-Newsletter
December 2009
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
The holiday season is well under way and consumers are scurrying to both the malls and the internet to find just the right gifts for family and friends. As they have been in recent years, gift cards are again expected to be the most requested item of 2009. Their versatility allows the recipient to pick out their own item, which virtually ensures that the gift will be appreciated.
Consumers will have a variety of options this year, as gift cards will be sold by most major retailers. Cards from department stores, book stores, and restaurants are expected to be the most popular, but cards issued by financial institutions are quickly becoming a large segment of the gift card industry. These “bank gift cards”, as they are sometimes called, typically offer more flexibility with regard to where they may be used. But, it is important for consumers to note that laws passed by the Florida Legislature in 2007 prohibiting expiration dates and post-sale fees don’t apply to this type of gift card.
This issue of the Florida Consumer E-Newsletter is dedicated to providing you information on buying, giving and using gift cards. Happy Holidays, and remember… consumer education is the best defense against fraud and deception!
Sincerely,
The importance of understanding the difference between certain types of gift cards should never be understated. For the most part, there are two types. Retail gift cards, or “closed-loop” cards, are sold by retailers and restaurants, and can typically be used only with those merchants. While these may have certain purchasing exclusions as defined in their individual terms and conditions, by Florida law they shall not have an expiration date or any post-sale charge or fee. However, bank gift cards, or “open-loop” cards, are exempt from this law. These cards will carry the logo of a payment card network like American Express, VISA or MasterCard, and their major advantage is that they are able to be used at any location accepting cards from that network.
When Purchasing and Giving Gift Cards:
- Buy from sources you know and trust. Avoid buying gift cards from online auction sites, because the cards may be counterfeit or may have been obtained fraudulently.
- Read the terms and conditions, including the fine print, before you buy.
- Ask about expiration dates and fees when you’re buying a card. 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 it, ask. If the information is separate from the gift card, give it to the recipient with the card to help protect the value of the card.
- Inspect the card before you buy it. Verify that none of the protective stickers have been removed, and make sure that the codes on the back of the card haven’t been scratched off to reveal a PIN number. Report tampered cards to the store selling the cards. Immediately after purchasing the card in a retail store, ask the sales clerk to scan the card to make sure the balance is correct.
- Give the recipient the original receipt to verify the card’s purchase in case it is lost or stolen.
When Receiving and Using Gift Cards:
- Read the terms and conditions when you get the card, and check for an expiration date or any fees.
- 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.
- Treat gift cards like cash. If you lose them and don’t have any documentation, you’ve just lost money! Make photocopies and set up a family gift card file to retain the original receipts, subsequent receipts, any expiration/fee commencement dates, any inserts with terms and conditions, and toll-free customer service numbers.
- Use your card as soon as you can, and register the cards of retailers that require it for replacement. But keep in mind, most retailers will charge a fee to replace your lost or stolen card.
The Florida Department of Agriculture and Consumer Services is here for you - for more information, visit our website at www.800helpfla.com, or call our Consumer Assistance Center. They will answer almost any question you may have or direct you to the best resource for assistance. If you are calling within Florida simply dial 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221, or en Español 1-800-FL-AYUDA (352-9832).
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Florida Department of Agriculture and Consumer Services
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.
Federal Trade Commission
Shopping for gifts can be a real dilemma. Just what do you get your finicky Aunt Mary, your co-worker, or your child’s babysitter? Gift cards may be the answer: one size fits all, and the recipients can get exactly what they want from a retailer or restaurant.
