Gift cards are still a popular option as the holidays draw near because of their versatility and ease of use. To prevent possible problems, both donors and recipients should read the tiny print and comprehend the rules pertaining to gift cards. Here is all you should know about common scams, gift card protections, and safety advice.
Federal Protections for Gift Card Buyers
For customers buying gift cards from stores, restaurants, or banks, the Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act provides crucial protections.
- Expiration Dates: Under federal law, gift cards cannot expire until at least five years from the activation date.
- Fee Limitations: Dormancy or inactivity fees can only be charged after a year of inactivity, and the card must clearly disclose such fees.
The state of South Carolina has statutes that offer additional protections for gift card users on top of these federal protections.
Beware of Gift Card Scams
Scammers frequently target gift cards because, once spent, they work similarly to cash and are hard to track down or retrieve. Customers need to be aware of these typical scams:
- Fake Emergencies: Scammers may pose as lawyers or officials claiming a loved one is in trouble and needs payment via gift cards.
- Overpayment Scams: Fraudsters may offer to overpay for an item you re selling, then request the difference in the form of gift cards. These checks often turn out to be fake.
- Imposter Requests: No legitimate business or government agency will ask for payment via gift cards.
It’s probably a fraud if you come across these circumstances. Contact the FTC, which monitors fraudulent activities, and your local police department to report a scam.
How to Protect Your Gift Cards
Do the following if you think you’ve been scammed:
- Notify the merchant or issuer immediately to report the incident. Some issuers may refund the remaining balance, though a fee may apply.
- Keep a record of the card number and receipt for verification.
- Report the scam to the FTC and consider filing a police report.
Tips for Buying Gift Cards Safely
- Purchase From Trusted Sources: Avoid buying gift cards from unknown websites, as they could be counterfeit or stolen.
- Inspect Before Buying: Check physical cards to ensure the codes on the back are intact and have not been scratched off.
- Read the Fine Print: Be aware of expiration dates, fees, and terms of use.
- Register Your Card: Some issuers allow you to register gift cards, offering additional protection if the card is lost or stolen.
You can make sure that your gift card purchase is a safe and considerate decision by being aware of these rules. Remember to provide the receiver these pointers so they can maximize the value of your gift as well.
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