A Revamp On Gift Card Fees
We’ve all seen those gift cards that people can buy for others. Some mirror regular credit cards, while others are for specific retailers.
The problem with those cards is that they all come with fees of all sorts, and one never knows exactly what those fees are, and that’s just plain wrong. Some people end up paying big fees because they didn’t use all of the card in time, and find out that the card has burned itself up, even though there might not have been an expiration date on the card.
Thank goodness once again for the Federal Reserve. Although it won’t go into effect until August, they’ve taken on this issue about fees, which will at least balance the landscape a little bit and let consumers know what’s going on.
What’s coming? One, all gift cards are going to have to spell out what fees are and times for those fees so we know what they are. Two, inactivity fees will not be allowed to be charged until there’s been a year of inactivity, and even then, there will be a cap on how much those fees can be.
Of course, it’s still probably best to use those gift cards as soon as you can, but now you have a bit more protection; that’s a good thing.
Mitch Reply:
March 24th, 2010 at 5:28 PM
Well Tim, as someone who consistently forgets I’ve been given gift certificates until just before they expire (it’s like my mind suddenly kicks in), I think it’s a bit harsh. However, the main thing is that you never know what the fees or anything else is going to be, including with phone cards; I wonder if that’s included in this deal. Just let me know what the fees are and then if I miss the dates it’s really my fault, and no harm’s done.