Receiving GIFT CARDS!

Although it may not feel like cash in hand, you probably might enjoy once on a while getting a gift card sent to you even as a holiday present. Gift cards/certificates and cash are the top two gifts consumers want to receive the seasons according to the Deloitte annual holiday survey.

Prepaid cards continue to grow in popularity, sometimes a person is low on cash but they have a lot of credit on a gift card, it can be an alternative to a checking account and sometimes getting a gift card makes shopping with that particular retailer easier or enables you to receive a discount or more sales, I prefer VISA or MC or AMEX gift cards instead of a store specific brand but that is OK too - I got one for Starbucks and Target, its all good but just make sure the amount is what was promised and you might have to go and activate the card.

Its a fun alternative for unusual cash gifting but keep in mind these points:

Prepaid cards: You may have more protection here than with retail gift cards. American Express cards carry its Fraud Protection Guarantee; Visa cards are covered by Visa's Zero Liability policy; and cards carrying the MasterCard logo are covered by MasterCard's Zero Liability Protection.

These programs generally mean that cardholders aren't responsible for fraudulent purchases as long as the loss or theft is reported promptly.

However, there are some exceptions; for example, Visa purchases made with a PIN and not processed on the Visa network. Consumer Action pointed out in its survey of prepaid cards that there are gaps in this protection, so read the fine print.

To be on the safe side, always register a gift card or prepaid card right away and keep a receipt, if you have one, in case your card is lost or stolen or you run into a problem with the card.

Fees for Gift Cards: The CARD Act prohibits inactivity or service fees in the first year, and after the first year there can only be one fee assessed per month. A general purpose gift card (such as one carrying the Visa, American Express or MasterCard logo) may charge a fee when you purchase the card.

Prepaid Cards: Most of these cards charge a monthly fee, and may charge other service fees. For example, there may be a fee to reload money, withdraw funds at an ATM or even to receive a paper statement.

Expiration Dates

Gift Cards: Cannot expire in less than five years, per the CARD Act. However, if fees are charged after the first year, they can erode the balance.

Prepaid Cards: The Federal Reserve reports that the average prepaid card is active for six months or less. If you let a prepaid card sit on the shelf, the value can drop -- sometimes fairly quickly -- due to monthly fees.

http://www.giftcards.com/