The holiday season is around the corner, meaning shoppers are more than likely about to stock up on gift cards to give their family and friends.

But a recent study commissioned by the Consumer Federation of America found that many consumers still don't understand the rules of bank or cash gift cards issued by companies such as American Express, Visa and Mastercard.

Just 33 percent of those surveyed knew there was a charge to purchase these cards and only 54 percent knew that some of the gift cards charge a monthly fee after 6 to 12 months. Cash and bank gift cards usually cost $4 to $7 to purchase and have monthly fees as high as $4.95 as early as six months after purchase.

As a result of the study, the Consumer Federation of America and the National Association of Consumer Agency Administrators have created a new brochure on gift cards they'll give out at retailers such as CVS and Walgreens. American Express will also give out copies.

You can also access the brochure at www.consumerfed.org. Find Maryland rules at the attorney general's office website.

A new federal law goes into affect in Aug. 2010 that will prohibit fees from being charged on gift cards that have been used in the past 12 months. Until then, use caution when purchasing gift cards.

(photo courtesy of AP)

Posted by Andrea Walker at 8:59 AM | Permalink | Comments (1)
Categories: Gift cards, Holiday shopping, Shopping
        

I got a gift certificate to a downtown Baltimore spa for my birthday back in March. The procrastinator that I am, I never got around to using it, and it’s set to expire in September.

I was getting anxious trying to figure out when I would have time to go until someone pointed out to me that legally it can’t expire that soon.

The General Assembly passed a law in 2006 that said gift certificates and gift cards bought for a specific store couldn’t expire until four years after the date it was bought. National gift cards, such as ones issued from Visa and Mastercard, can expire sooner. But the expiration must be clear on the card or certificate.

I called the Maryland Attorney General’s Office to make sure and spokeswoman Shanetta Paskel confirmed the law to me.

“They would not be able to expire in a year,” Pascal said. “If some company is doing that or some specific restaurant is doing that, then that is illegal in Maryland.”

After talking to Paskel, I thought about several gift certificates I bought from Restaurant.com. I bought them last October and the certificates said they expire a year after purchase. I still have about four left and was wondering when I’d use them all. Paskel said if they’re for a specific restaurant they can’t expire in a year.

 I called Restaurant.com to ask them about the expiration dates and am still waiting word. A spokeswoman is looking into it. I’ll let you know what they say.

In the meantime, this is just a friendly reminder to consumers to remember your rights when it comes to gift cards and gift certificates. Many businesses obviously don't know the rules. Stand up for your four years.

Posted by Andrea Walker at 5:55 PM | Permalink | Comments (0)
Categories: Consumer protection, Gift cards
        

What are your plans for the day after Christmas?

Dec. 26 may be a Friday but it may not get retailers into the Black, despite desperately slashed prices.

Still, some people will definitely be out with an infusion of Christmas cash and gift cards. 

I'm curious --- did anyone put off big purchases or even postpone gift exchanges in the hopes of taking advantage of post-Christmas discounts? It's a good strategy any year, but if you had the time and/or flexible gift recipients, it seemed especially wise.

Posted by Liz Kay at 7:30 AM | Permalink | Comments (2)
Categories: Cheap/Frugal, Gift cards, Holiday shopping, Shopping
        

It's good advice: use a gift card soon, because you never know what may happen.

However, there's been an e-mail circulating the Interwebs warning people not to buy gift cards from about 30 retailers, stating that those businesses are in danger of collapse.

That info's a bit misleading, according to a North Carolina TV station's investigation of the gift card e-mail highlighted by Tightwad Tod over at Consumer Reports. 

Some of the stores have in fact ...

Continue reading "Gift cards: a gift to avoid? " »

Posted by Liz Kay at 10:59 AM | Permalink | Comments (0)
Categories: Gift cards, Holiday shopping
        

The thing consumers want to take away from yesterday's news that Boscov's filed for bankruptcy is that while the Reading, Pa.-based department store will close ten underperforming stores immediately, your current gift cards, product warranties and bridal registries will be honored.

Boscov's blames the downturn in the economy and drop in consumer spending for its ailments, causing it to close three Maryland stores just a couple years after opening here. 

The stores affected are in White Marsh Mall, Marley Station Mall and Owings Mills Mall. As our story says, the company's other Maryland stores - in Westminster, Frederick and Salisbury - will remain open. Boscov's also has stores in Pennsylvania, Delaware, Virginia, New York and New Jersey. 

Continue reading "Gift cards, product warranties and bridal registries OK at Boscov's" »

Posted by Dan Thanh Dang at 4:15 PM | Permalink | Comments (0)
Categories: Economy, Gift cards, Shopping
        

OK. I had a whole diatribe written for you about one more reason why you should hate gift cards, but my butterfingers clicked the wrong button and lost the entire (and rather lengthy) post (filled with links). ARghH!

Here's the gist of what I was going to say: The Sharper Image, that seller of electronic can-you-believe-they-make-something-to-do-that-people-will-think-of-everything doodads filed for bankruptcy protection last month. While they come up with a reorganization plan and try to pay off debt to a long line of creditors, the company will suspend gift card redemption.

Here's what the Sharper Image had to say on its Web site:

The company intends to continue to conduct business as usual while it devotes renewed efforts to resolve its operational and liquidity problems and develops a reorganization plan.

However, The Sharper Image is suspending the acceptance of Gift Cards, Reward Cards, Gift Certificates or Merchandise Certificates as a form of payment.

We appreciate your understanding that according to Bankruptcy law, store employees, managers and the Company do not have the authority to override this directive.

The Company is urgently working with the Bankruptcy Court to quickly come to a solution for this issue. Please check back with us in mid-March for further updates.

Continue reading "Gift Cards: Another reason to hate them" »

Posted by Dan Thanh Dang at 6:21 PM | Permalink | Comments (5)
Categories: Complaints, Consumer protection, Gift cards
        

You know what I just realized about all the Christmas presents I received just this past year? I didn't get a single gift card.

It didn't even occur to me to think about it until I read this interesting report from WSL Strategic Retail’s How America Shops®...Everyday Pulse on gift card popularity passing its peak.

I used to pick them up for my nieces and nephews because it was so easy, but then it just started feeling impersonal. Instead of being able to point to a well-worn, beloved stack of Dr. Seuss books I got them, I'd sit there wondering what they bought with the cards I gave them. It made me feel like a very neglectful aunt so I stopped being lazy and started looking for real presents again.

Apparently, I'm not the only one who fell out of love with gift cards. According to WSL, the percent of holiday shoppers who gave gift cards has dropped significantly year on year from the 60 percent in 2003 level to 44 percent in 2007.

Here are WSL's top five reasons:

Continue reading "Gift Cards: The gift we love to hate" »

Posted by Dan Thanh Dang at 10:55 AM | Permalink | Comments (1)
Categories: Gift cards, Shopping
        

Do you hate gift cards? Do you love giving them, but not receiving them? Did you misplace a bunch of gift cards you received as presents? Are you a vegetarian who got a gift card to a steakhouse chain?

Whether you love them or hate them, gift cards will make up $26.3 billion in sales for the 2007 holiday season, according to the National Retail Federation.

Those of you in the hate group might despise gift cards a little less thanks to a new, free service that helps users "purchase and register their gift cards, track their balances, swap cards of equal value and even earn interest," according to this L.A. Times story.

Leverage Inc., a California-based firm, allows users to register cards on the Web site and then track their cards on-line, the story says. Users are notified when gift card balances change and if a card goes missing, a backup mechanism can retrieve lost card numbers.

Continue reading "A new way to love gift cards again?" »

Posted by Dan Thanh Dang at 7:55 AM | Permalink | Comments (0)
Categories: Gift cards
        

If you're gearing up for the big holiday shopping push, read this first!

Financial guru and my partner-in-crime Eileen Ambrose says:

Gift cards are a thoughtful present for those who are difficult to buy for. Or, they’re the lazy giver’s way to avoid the mall crowd at holidays. I include myself in this latter category.

Either way, recipients often don’t redeem them. Cards go missing or expire. One estimate puts the loss of unredeemed cards last year at nearly $8 billion. That’s free money for retailers.

Just as maddening, even if you redeem cards, you might find that the value isn’t what it used to be because of hidden fees.

Consumer Reports today kicks off a campaign warning about gift card pitfalls. A couple of years ago....

Continue reading "The not-so-perfect gift?" »

Posted by Dan Thanh Dang at 10:47 AM | Permalink | Comments (2)
Categories: Gift cards