…a gift card.
Wait a minute. What’s so bad about a gift card, you ask? Read: Gift card fees still playing Scrooge – The Red Tape Chronicles:
How much is that $50 gift card really worth? Well, it’s hard to say. The art of irritating and sneaky fees has reached new heights in this 21st century version of gift certificates. There are sign-up fees, transaction fees, dormancy fees and outright expiration dates. Poorly timed use of the cards could make the $50 gift worth more like $40, $30, $20 … or in some cases, nothing….
Gift cards have been called the gift that keeps on taking, and for good reason. In some cases, only a few months after purchase, the cards slowly begin to lose their value, through “dormancy” or non-use fees. Some cards lose their value entirely after a year or two. Companies count on a certain number of consumers who drop the cards into the sock drawer and forget about them. It’s easy money….
Two of the worst examples cited by a recent study conducted by the Montgomery County, Md., Division of Consumer Affairs include the iCARD Visa Gift Card and the Good2Go MasterCard. The iCARD comes laden with a $25 maintenance fee after six months. After that, it can cost $25 to get the balance refunded by check. Refunds cost $75 after two years. The Good2Go card costs $9.95 to purchase and $4.95 each month for maintenance.
Read the article for a few ways to avoid the bite.
Unless you live in Connecticut. It’s against state law to charge fees on gift cards and they never expire. I knew I liked this state for a reason!
Gift cards are incredibly lazy and impersonal. Frankly, I’m so busy that the best gift for me would be to avoid shopping (I’ve needed to get a new winter coat for the longest and just don’t have the time to do it).
The Simon Corp, owner/management company of malls all over the country, has been getting a lot of flack over this for years, including major lawsuits by several state Attorneys General…