.When you buy a gift card, who really gets the gift?
By Boatman1338
@Boatman1338 (74)
United States
December 19, 2006 1:24pm CST
I am talking about the cards from American Express, Visa, MasterCard etc. Not the store or restaurant cards.
I went to purchased two twenty-five dollar Vanilla Vias cards today. I flipped one ove to read the fine print. I would be charges a fee of 3.95 to buy the card! This got me thinking, it would cost 3.95 to buy, then if it was used one time, the merchant would be charged a fee of about 1.30. If the person I was going to give it to used the card three times before the twenty five dollars was used up, then Visa would have made 8.00 on that 25.00 card! That is almost 30% profit! What a great scam!
I decided to just write checks to the lucky gift recievers, my bank doesn't charge me to write a check. And shame on the credit card companies for being such scammers
2 people like this
23 responses
@srhelmer (7029)
• Beaver Dam, Wisconsin
19 Dec 06
Most cards aren't like that, but there are some that make extra money by offering the gift cards. Personally, I would think they would be happy just with the guarantee the money is being spent at their establishment and not somewhere else.
1 person likes this
@Boatman1338 (74)
• United States
19 Dec 06
I am talking about the cards from Visa, Amex, etc. They cahrge a fee up front, then charge the merchants a processing fee. I am not sure about the store gift cards, but I don't think they charge fees on theirs.
@emeraldisle (13139)
• United States
19 Dec 06
You also need to check the small print for depreciation. Some cards if you don't use them within 30 days start to lose a percetage of it as it goes on. So that 20 dollar gift card in two months might only be worth $17. I don't know the actual amounts off hand or which ones do this, just happened to catch it on the news at one time.
1 person likes this
@Boatman1338 (74)
• United States
19 Dec 06
Thanks, i didn't even consider depreciation. I guess gift cards might not be the best gift idea of the season.
@NettieMae (185)
• United States
19 Dec 06
Wow! Thanks for the heads-up. I will definitely think twice and read the fine print before giving gift cards. I had no idea it was so lucrative for the credit card companies although I had wondered. I wonder if store gift cards are basically the same way?
@Boatman1338 (74)
• United States
19 Dec 06
I didn't look at the store gift cards, so I am not sure how they do it. I did work at store that sold certificates, they only charged the face value and the certificate never expired, but you could only use it once. If you had a fifty dollar certificate, and purchased forty five dollars in merchandise, we gave you change back. some places will not do that, they want you to spend more than the face value. If you don't use it all, you loose the difference.
Thanks for the response.
@patootie (3592)
•
20 Dec 06
Blimey .. those 'hidden' charges all seem a bit steep .. you'd have thought they'd be glad for folks to buy the gift cards .. as they'd obviously be making money when the recipient uses it ... but to charge the card purchaser as well .. that's a flippin' Scrooge attitude ... shame on them ...
1 person likes this
@Pixell (192)
• United States
20 Dec 06
I started this saying how nice it is that most of the stores give dollar for dollar having the gift card not be yet another way to rip us off, as far as hidden cost goes. However, when we give or get gift cards for Best Buy or sears,and we do every year, a card for $50.00 we is good for $50.00. No hidden fees hidden in fine print, but they get us when we do not spend the full amount , because they insist on putting the change on yet another gift card. Makeing us have to go back to that store to use it up... Brings us in for another sale. It seems it should be an option for the person with the card as to how they will take the change. If the card is for $20.00 and the change is $4.50, the store knows they do not sell anything under $10.00........ if they insist on putting the ballance on a card, then chances are that you will not come back to use the card and therefore they have just made $4.50 for nothing. Nice racketfor them too. I know I have a few cards in my drawer from stores that have under $5.00 on them. I do not have a need for anything at some of those stores. I would not have shopped there at all had it not been for the gift card. A card for Michale's arts and crafts with a ballance of a few dollars will likely be used by a person who shops there alot or it will be used because that store sells alot of stuff for under a dollar. Anyway thats my take on the gift card giving. Your post is an important one. Thak you for sharing this info. Pixell
@cindyspassions (510)
• Lampe, Missouri
20 Dec 06
I do in home parties and use gift certificates you want one for $25 you pay me $25 that gose to that GC (gift certificate) no one is charged unless they go over the $25 then they pay the difference
@ais_nedla (162)
• United States
20 Dec 06
if you buy a gift card. the one gets it is the person you are giving it to.
