With US gift card market size of $86 billion it is no wonder there is significant competition for gift card market share. The
convenience of gift cards is perfect for holiday giving. Just identify which store your favored recipient shops at and then purchase a card. Keeping in mind how much they spent on you last year, of course…
All kidding aside, with card issuers like Visa, MasterCard and American Express now actively in the mix for selling and promoting gift cards you don’t even need to know which shops your friend, relative or loved one will want to shop at to be a success. You can purchase a gift card from these major card issuers that they can use at any store where credit cards are accepted. There are, however, some traps that buyers should beware of concerning gift cards.
Gift Card Prices
With purchase price fees range from $3.95 to $6.95 but that’s not where the charges end for these type of gift cards. Cardholders are required to pay maintenance fees of $1.50 to $ 2.50 per month before the card balance becomes nil. Be sure to use up the entire value on the card because if there is a nominal amount left on it when it expires, usually in five years, it will be lost. And the Royal Bank, if that is your card holder, will generously donate unused expired card values to charity.
New kid on the block Amex Gift Card is available at merchants such as Shoppers Drug Mart stores. It’s available for the usual nominal fee and has no monthly fees or charges.
Lost Cards
A lost card will cost you between $10 and $20 to get replaced. This may seem redundant if you have a $25 gift card. Sites are available to check your balance. Just enter your card number, for a small fee, seventy five cents per inquiry, this service is not cheap.
Too Impersonal – Not Any More!
Some people think gift cards are too impersonal, that require little thought and even less effort. Giftcard.com has changed that and developed a site where you can purchase personalized gift cards. Books, apparel, electronics or online flowers gift cards can be purchased from major retail merchants. With denominations between $25 and $500 you will surely find something suitable.
Most cards offer no expiration dates and no fees. Fashion Bug’s gift card offer does have a nominal $1 per month dormancy fee for cards over 24 months old. Some cards are sent free of charge and some companies charge a nominal fee to send the card via surface mail. Barnes & Noble Gift Cards, for example, will ship gift cards for $0.95 regular mail or Expedited Air Service to be received 1-2 business days for $11.95.
If that isn’t enough, you can personalize a Visa gift card with your own photograph at giftcards.com. With denominations of $20 – $500 and you can even create prepaid cards with embossed text or you can choose one of several provided by giftcards.com. Messages such as ‘BEST WISHES’, ‘BON VOYAGE’ or even ‘FELIZ CINCO DE MAYO’ can be added to the card.
When you need gifts for employees you can purchase Vanilla Visa Gift Cards. The catch here is you have to buy 10 or more cards. With amounts of $25, $50 or $100 this prepaid card can be used online, or in any location Visa debit cards are accepted. The Vanilla cards, unlike other Visa gift cards have no additional card fees and as a personal touch a custom framed certificate, greeting card and gift certificates are all available to enhance the gift giving pleasure.
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