Be wary of gift cards/certificates

[msdznyduck]

I was listening to the radio the past few days, and it seems that gift cards/certificates at quite a few stores will either expire or start losing value after a few months. Make sure when you purchase them you ask.......or when you receive them, you use them within a couple of weeks.
It doesn't seem right, because you have already paid for them. You should be able to use them for something you want, or on sale, instead of rushing out to buy something before they lose value.

 

[cinmell]

I've heard a lot of warnings when buying gift certificates which is why I've decided to buy American Express Gift Checks this year in place of store/mall gift certs.

 

[CEDmom]

Some stores do try to charge a non-activity fee when the card hasn't been used for months. If you complain most stores will give you back that money. Whenever I give a gift card I also give a gift receipt for the card in case there's any problem with it. Most stores give this receipt w/o asking.

 

[CamColt]

I usually buy a lot of Simon Mall Gift Certificates(Burlington Mall is our local Simon Mall), but this year I refuse. Theres no way Im giving a gift that people wont get the full value of it. Instead Im giving gift cards to individual stores that dont lose value.

 

[Cindy B]

Originally posted by msdznyduck
I was listening to the radio the past few days, and it seems that gift cards/certificates at quite a few stores will either expire or start losing value after a few months. Make sure when you purchase them you ask.......or when you receive them, you use them within a couple of weeks.

Not exactly true.. I bought my nephews Best buy gift cards, and it states that if isn't used within 24 months (2 years!) they will charge a small fee like .25 cents a month...

Honestly with 2 years, I am sure I won't be rushing out!

Don't listen to that hype.. they are making it sound more dramatic.

 

[The Mystery Machine]

I don't know about any of the extra charges but I do want to say make sure you check how many stores take their own "mall" certificate. Many stores at our local mall here don't take the mall certificate.

 

[Lorix2]

I think I read somewhere that in NH at least, gift certificates of any type $100.00 and less cannot expire legally.

 

[momof2inPA]

I heard a radio show the other day where a financial lady said gift certificates or cards never expire in Pennsylvania. If the store will not honor it, they and the customer must fill out paperwork and send it to a state governmental office so the customer can receive cash.

 

[Cindy B]

Originally posted by Lorix2
I think I read somewhere that in NH at least, gift certificates of any type $100.00 and less cannot expire legally.

See, we are talking about two different things.. expiring or charging an "inactive fee".


Expiring is a different issue altgother than an inactive fee.

 

[WDWHound]

Originally posted by Cindy B
Not exactly true.. I bought my nephews Best buy gift cards, and it states that if isn't used within 24 months (2 years!) they will charge a small fee like .25 cents a month...

Honestly with 2 years, I am sure I won't be rushing out!

Don't listen to that hype.. they are making it sound more dramatic.

Inactivity fees can range from something small, like 25 cents, up to 10 percent of the value of the card. The delay period before the fees kick in can be a little as 3 months. Some cards are good deals, some cards are not. You must check the details each time you purchase a card to be sure.

 

[phorsenuf]

Copied this from a web site....

Don't toss old gift certificates because they can still be used

Many people get gift certificates for Christmas, put them in a drawer and forget them, but that doesn't mean they still can't be used.

A little publicized New Hampshire law makes it is illegal for businesses to place expiration dates on any gift certificate that was purchased for less than $100. The only exception is for gift certificates that were donated, according to New Hampshire Senior Assistant Attorney General Kristin Spath.

"We have been really trying to get the word out to both consumers and businesses," said Spath, chief of the state's Consumer Protection Bureau.

If gift certificates over $100 remain unclaimed after five years, businesses must turn that money over to the state's Division of Abandoned Property.

"I am willing to bet there are very few businesses or companies that are even aware of that law," Spath said.

The law applies to any type of business that offers goods or services for sale, and New Hampshire makes no distinction between "gift cards" and gift certificates, Spath said. Even chain stores that may issue gift certificates from out of state must comply with New Hampshire's law, she said.

Spath said some companies try to get around the law by imposing periodic charges on gift certificates that remain unused for a certain amount of time. Spath said her office opposes this practice, but New Hampshire's law does not specifically address it.

New Hampshire's law was enacted in 1997. Other states with similar laws include Massachusetts, Rhode Island, California and Hawaii. In most other states, gift certificates typically expire in six months to two years.

Not all businesses have complied with the law. In California, expiration dates on gift certificates have sparked a flurry of class-action lawsuits. A lot of money is at stake, with the rise of prepaid debit cards turning gift certificates into increasingly popular items.

The Associated Press reports that shoppers nationwide are expected to spend somewhere between $20 billion and $30 billion on gift certificates this year. By some industry estimates, 10 percent to 15 percent of gift certificates sold nationwide aren't redeemed -- pure profit for the retailers.

Spath said New Hampshire businesses that violate the gift certificate law can be charged with a misdemeanor criminal offense. They also can be liable for the value of the gift certificate or a fine of up to $1,000, she said.