Gift cards can be an easy and popular way to give and receive presents, but be wary of hidden fees or restrictions that may apply.
Criminals love gift cards because they can be used in numerous scams. Be wary of fraudulent gift card salesman and make sure that any payments happen instantly via platforms such as GC Buying to decrease waiting time.
Fees for inactivity
Gift cards may seem like an easy and quick way to purchase products, but they may actually cost more than you realize. Some cards charge fees for inactivity while others require activation before use; moreover, criminals may tamper with them and steal funds hidden inside. Therefore, it’s essential that consumers read all fine print before making purchasing decisions with gift cards.
2019 has brought good news with law reforms changing gift card fees. According to these reforms, gift card fees must now be clearly displayed on their packaging as well as explained so consumers are aware of any hidden or inactivity fees prior to purchasing one.
Gift card holders should also take precautions against scams when handling gift cards. Never provide personal data to strangers or untrustworthy websites and be wary of unsolicited mail that appears like holiday promotions and contests and requests gift card codes as this could be fraudulent activity; if someone needs money, they would likely offer alternative payment solutions instead of insisting upon gift cards as payment methods.
When selling gift cards, select a platform with transparent rates that do not contain hidden charges or third-party payments – these may incur high conversion fees and cause you to incur unnecessary conversion fees. When selling overseas, be sure to choose a platform operating within your country or using its currency as this will ensure smooth transaction processes.
Fees for activation
Gift cards are an easy and thoughtful way to give gifts, but they often contain hidden fees that diminish their value. There are ways you can navigate around these hidden costs and maximize the potential of your card: For instance, selecting a platform offering long-term offers rather than time-limited ones or purchasing it from stores with lower activation fees are effective strategies.
The amount of an activation fee depends on both its initial value and card issuer; higher-value cards generally have larger activation fees than lower-value ones, although this fee may also depend on where it was purchased from. To minimize fees as quickly as possible.
Fraudsters can gain access to gift cards by altering them, which could cost the cardholder money. Criminals used botnets online in the past to guess the PIN code and gain entry, however this technique has become harder for fraudsters to employ.
Some retailers still charge activation fees for gift cards despite federal laws prohibiting them, according to research from the National Retail Federation (NRF). Furthermore, certain retailers also impose credit card and processing fees that can total close to 10 per cent of its balance on each card purchased from them.
Fees for reloading
Reloading a gift card varies from business to business; some require you to visit either their physical store or website, while others offer automatic reload options that transfer funds directly from one of your payment accounts into your card at regular intervals. Check back of card for available reload options or call business directly if unsure; also be ready with credit or checking account number ready when the reload site requests it.
Fraudsters often target companies that issue gift cards, stealing card numbers and activation codes by hacking company computers or infecting employee devices with malware. Furthermore, phishing attacks against employees may also be employed to gather passwords and login details that enable fraudsters to use these gift cards to make purchases or transfer money directly into their own accounts.
Credit card rewards programs offer significant savings if you use gift cards for everyday purchases, but be wary of hidden fees when buying gift cards. Some credit card issuers treat gift cards as cash advances and charge an interest-bearing cash advance fee on them; furthermore, some cards contain an upper limit for cash advance fees; therefore it is wise to read all fine print before making any decisions regarding purchases of this nature.
Fees for shipping
Gift cards can make great presents for holiday shoppers, but they may also come with hidden fees that make them unattractive. People often forget to use or redeem their gift cards at all – leading consumers to lose $8 billion worth every year due to fraudsters taking advantage of gift cards’ popularity to steal money.
Fraudsters may use stolen payment card numbers to purchase large quantities of gift cards and sell them for cash during the holiday season. Such fraudulent transactions are easily concealed as customers returning goods may request that their refunds be added as gift cards instead of credits back onto merchant accounts, creating double charges and chargeback fees as a result. In addition, fraudsters could potentially use gift cards themselves for fraudulent purchases that they would otherwise never make themselves.
Criminals can use computer software to guess the PIN code on a gift card, making it easier for criminals to crack it. Consumers should carefully inspect cards for signs of tampering as well as read any fine print that might contain expiration dates or restrictions that need to be considered before purchasing one.
Be wary when purchasing gift cards online: make sure to compare the rates from different sellers before settling on one. Some platforms advertise high rates but provide lower payouts when it comes time to sell the card back; to avoid this scenario, use a reliable gift card exchange, such as GC Buying which provides both reliable rates and low fees.