Bought $20 prepaid Visa as a gift...hit with $7.95 Activation Fee

[gmi3804]

I went to Office Max the other day to buy my monthly $20 gift card (AMEX Gold Business offers a statement credit every month for office supplies stores), and every card in the store from the vendor I wanted had PIN coverings pulled back, no a lot, but just enough. I told the Manager and he said it happens all the time, and he took them off the rack. Beware out there, and always check the security covering over the PIN or, better yet, buy a card that's in a sealed cardboard cover if possible.

 

[Imzadi]

The packaging notes the activation fee and merchants can add their own on there. The amount purchased is more likely to have a $2.95 fee and the rest could be the merchant tagging on more.

Yes, the last time I bought one of these cards, which was years ago, the activation fee was around $3.95. Then there was also a MONTHLY fee if one wanted to keep using the card beyond the initial loading. That was another $3 or so monthly.

$7.95 just for activation is outrageous!

 

[Sidney Land]

Yes, almost bought such a card a few months ago until I checked the fine print. Store gift cards seem to be ok, but doublecheck!

 

[kdonnel]

If you have an Amex and want Amex gift cards, pay attention around Christmas for the no activation fee Amex gift card promo they run most every year.

 

[Imzadi]

Also something to note about store gift cards, the law in many states is that there are no longer expiration dates for gift cards. So, even if it states an expiration date, that may be for the states that allow one. Try using it (or enter the card number online if the store has a webpage to find the balance,) if you are in a state with no expiration date.

 

[Mackenzie Click-Mickelson]

Yes, the last time I bought one of these cards, which was years ago, the activation fee was around $3.95. Then there was also a MONTHLY fee if one wanted to keep using the card beyond the initial loading. That was another $3 or so monthly.

$7.95 just for activation is outrageous!

The monthly fee kicks in after so many months of inactiveness, I believe it's around 12 months or so without using it at all during that time period, use it 1 time and it resets the clock. Until the law changed store and restaurant gift cards either you lost the money because it expired or had to pay fees. That's why normal gift cards have the "there is no expiration date" on many of them. Visa and Mastercard gift cards I'm okay with them having inactive fees, not that I like it, but it's a lot different than getting a store gift card that had to be used up quick because it expired and you were out of luck majority of the time if your card expired.

 

[Mackenzie Click-Mickelson]

Also something to note about store gift cards, the law in many states is that there are no longer expiration dates for gift cards. So, even if it states an expiration date, that may be for the states that allow one. Try using it (or enter the card number online if the store has a webpage to find the balance,) if you are in a state with no expiration date.

Many retailers just stopped having expiration dates, it became easier for them to just do that than to try and do a state by state thing. It's been a long time since I've been given a store or restaurant gift card with an expiration date.

 

[AppleDumpling]

I don’t purchase Visa gift cards, partly for this reason.

…So yea, sending a Gift Card in the mail is a LOT safer than sending a check.

I’ve had bad luck sending gift cards in the mail. Twice they’ve disappeared and I’m out the money. Never again. In one case, the recipient never received it, and another, the birthday card it was sent with was delivered in a plastic bag with the envelope torn in half, and a note from USPS explaining that it was damaged in transit. (I suspect a postal employee stole it.) With a check, if it’s inside a greeting card, it can’t be detected through the envelope like a plastic gift card can. And if it goes missing, I can stop payment. The experience you had is terrible, but as for bills, we pay most online now.

Just bought a local restaurant gift card yesterday while out shopping as a Christmas gift and there were no added 'fees', so checking around to see what options you have can save you a few dollars.

Some of our favorite local restaurants still give out hand-written gift certificates, with no added fees and no expiration date.

I also buy gift cards for various retailers at BJ’s, where they are sold at a discounted price, below face value (sometimes as a multi-pack of 2 or 3 gift cards). I’m not a member, but would guess other warehouse clubs (Costco, Sam’s, etc.) do the same.

 

[Imzadi]

In one case, the recipient never received it, and another, the birthday card it was sent with was delivered in a plastic bag with the envelope torn in half, and a note from USPS explaining that it was damaged in transit. (I suspect a postal employee stole it.) With a check, if it’s inside a greeting card, it can’t be detected through the envelope like a plastic gift card can.

Decades ago, back in college, some guy's mom used to send him money inside cards, where the outside of the envelopes were all dolled up with colorful hugs & kisses and drawn on hearts in red markers, and even a lipstick kiss and "I love you," written on the back.

He said his mom did that on purpose to make the card inside seem like a lovely dovey card from a GF - who would not send money, rather than an obvious mom sending money. It worked for them. The card & money never went "missing" or arrived torn up.

 

[georgina]

I don’t purchase Visa gift cards, partly for this reason.

One week every month Staples sells $200 Visa gift cards with no fees. I have a credit card that rewards me 5% on office supply stores, so I buy several and use them for online purchases, at Costco, and they work as a debit card to pay off my Target Redcard, essentially doubling the 5% discount.

 

[Genie+]

It’s been over 5 years since I bought one of these but remember the fees varying back then depending on the card and location for Visa GCs. Typically was $2.95 and $4.95 options, though even back then I saw some $7.95 fees, and also $0 fee options as well. So it was worth shopping around.

We used to buy them for classmates birthdays. Nowadays I don’t have any use.

 

[Darcy03231]

We get MasterCard gift cards through our bank and there's no activation fee.

 

[HopperFan]

Sadly that has been the case for about as long as they have existed. I never give a " bank type debit" gift card (visa/mastercard/amex) because of the fees. I pick a business I know the receiver will enjoy.