Plastic Perfection: Giving with Gift Cards

Gift Cards, Defined

Most Popular Gift Cards

• Charitable Gift Cards: Give the gift of philanthropy with an online charitable contribution gift card. The recipient chooses an organization, and then donates the value of their gift card to its cause.

• Combination Gift Cards: Gift cards that offer incentives along with monetary value give more bang for the electronic buck. These are often sold in special offers from retail or financial companies and generally have limits on where they can be redeemed.

• Experiential Gift Cards: State and National Parks, like Yosemite National Park in California, have begun selling gift cards online for those who prefer the gift of adventure. These cards can be used to pay for entrance, lodging and other park fees.

• Prepaid or Stored-Value Gift Cards: Similar to the Visa Gift Card, these are cards with a prepaid monetary value that can be used anywhere credit cards are accepted. They are typically purchased from major financial or credit card companies.

• Retail Gift Cards: These are sold by retailers in stores or online to be used with their merchandise. Such cards can be used for casual gifts or in celebration of holidays. For example, Borders, a retail bookstore, created African American gift cards in commemoration of Black History Month in 2008.

Using Gift Cards

Some things to consider when purchasing and using gift cards:

• Fees and Penalties: Retail-issued gift cards don't charge any additional costs. Prepaid cards, however, almost always charge an initial fee. This can range from $2 to $12, depending on the issuer. Both types of cards will likely have an expiration date, at which point the value of the card is either lost or diminished.

• Personalization: Some gift cards can be personalized to make them unique. Images, embossing and even photographs can be incorporated into the card design. However, most retail-issued cards generally feature one standard design.

• Protection: Online registration is a feature that most all gift cards offer today. This enables the cardholder to check the balance on gift cards, replace lost or stolen cards and activate security features, as available.

Gift with Care: Abuses and Scams

Some of the most common sources of gift card fraud are online auction websites. Here, individuals can sell used or counterfeit gift cards, overstate the value of gift cards or sell stolen gift cards for cash. Gift cards bought from kiosks in general stores are also subject to fraud. Serial numbers or other information can be copied from cards that are not completely packaged.

In order to protect yourself from these and other gift card abuses, keep in mind the following:

• Always ask the retail staff to activate the card in front of you.
• Always carefully examine the gift card for evidence of damage or tampering.
• Always keep your proof of purchase and any related documentation.
• Avoid buying gift cards from public displays and kiosks.
• Avoid gift cards that have identification numbers printed where they can be easily seen.
• Check the balance on the gift card before you begin to spend.
• Don't buy gift cards from online sites.
• Never give your social security number, date of birth or any other personal information.
• Only buy gift cards in retail stores or from legitimate online retailers.
• Register your gift card with the issuer whenever available.