| I enjoy giving gift cards, especially to those hard to | | | | fee is small, not usually more than $1.50 or $2. This is |
| shop for people on my list. I, like nearly everyone else, | | | | similar to a dormancy fee, but the difference with a |
| have at least one person on my shopping list that I | | | | balance fee is that even if the card was used within |
| either don't know what to buy or I can't find what I | | | | the first 6 months (or whatever time frame is |
| think they would like. When that happens I consider | | | | specified) a fee will be assessed each month for still |
| their likes and then purchase a gift card I think they will | | | | having a balance on it. This is to encourage people to |
| enjoy using. | | | | use their gift cards in a reasonable amount of time and |
| For example, I give my restaurant loving friends gift | | | | not leave them sitting on a shelf somewhere collecting |
| cards to their favorite restaurants; gas station gift | | | | dust. |
| cards to my teenage nieces and nephews who drive; | | | | If you purchase a gift card that has a balance or |
| shopping mall gift cards to my daughter; and massage | | | | dormancy fee, try to purchase it as close to the time |
| gift certificates to my sister-in-law because I know she | | | | you are going to be giving it away as possible. |
| loves getting massages. | | | | Also be aware that the gift card could have an |
| Although gift cards are great and I buy them | | | | expiration date. Most of the gift cards from large |
| frequently, there are a few things to be aware of. The | | | | companies don't have an expiration date or allow a |
| main thing is to make sure the recipient knows the gift | | | | lengthy amount of time before the card expires, such |
| card is like carrying cash and needs to be | | | | as five years. Shorter time periods to use gift cards |
| safeguarded in the same way cash is. For the most | | | | and gift certificates, usually not less than 12 months but |
| part, lost or stolen gift cards cannot be replaced. | | | | occasionally as little as 6 months, are more likely to be |
| Another thing to be aware of is hidden fees, well not | | | | found with smaller companies and independent |
| really hidden fees, but fees detailed in very small print - | | | | business owners. |
| that size "one" font that's nearly impossible to read! | | | | I think it's perfectly fine to give gift cards and gift |
| One charge that will be apparent right away is a | | | | certificates with an expiration date. Just make sure the |
| possible upfront processing fee to defray the cost of | | | | recipient is aware of the expiration date. An expiration |
| producing and distributing the gift cards. Most | | | | date shouldn't cause you to not buy a gift card. After |
| companies try to avoid charging an upfront fee. But | | | | all, you don't want people to hang on to the gift card |
| some, like my local mall charges a small fee to | | | | and not use it. |
| purchase a gift card. It's nominal, $1.50 per card. | | | | And, remember that although gift cards may carry |
| Some companies and stores charge a non-use or | | | | some fees, the majority of them will never be a |
| dormancy fee on their gift cards. If a card is not used | | | | problem if the card is used within six months, which |
| for a specified period of time, a small amount is | | | | most gift cards are. So feel free to give gift cards |
| deducted from the value of the card every month. For | | | | whenever you think it is an appropriate gift. |
| example, $1 or $2 may be deducted from the balance | | | | One interesting note: even though some gift cards |
| of a gift card every month if that gift card is not used | | | | have started adding fees to their gift cards such as |
| within six months of purchase. | | | | dormancy fees, balance fees, or maintenance fees, |
| Another type of charge some gift cards have is a | | | | some states are starting to pass legislation banning |
| balance fee. If a gift card has a balance on it after a | | | | those fees as well as banning expiration dates. This is |
| certain amount of time, typically six months after | | | | good news for consumers. |
| purchase, a small fee is deducted each month. The | | | | |