What are the advantages of gift credit cards?
August 27, 2008 – 7:47 pm
If you are like me when it comes to shopping for my loved ones for holidays or birthdays, I take the easy way out and get them a gift card. My way of thinking is like that of many it is that why should I buy them something they may not like then they have to go exchange it for something they want. If I get them a gift card they can get what they want to start with. A gift card is the number one gift to receive for women and the number three gift to receive for men.
Are we really giving our loved ones a well thought out gift or giving them a gift that can be a real nightmare. Many gift cards have expiration dates or other hidden fees that could make its use very complicated. There are tho main kinds of gift cards on the market: retailer issued and bank issued. Let’s study them.
A retailer issued card is a gift card issued by a particular store to be used in that store. These cards most often do not have any expiration date or fees for not using the card because they know that they will get the money when the card is used. This may even bring a new customer into the store to shop. So the retailer benefits and they see no need to attach fees or expiration dates.
A bank issued gift credit card is a card that bears a credit card logo, such as visa or master card. These cards are more likely to have an expiration date and fees if you do not use your card in a certain amount of time. Americans have lost millions of dollars by buying these kinds of gift cards because many times they do not get used before they expire.
As a giver you should do your homework before you purchase a gift card. As a rule gift credit cards could be purchased for the amount between $25 and $500. Also, you will need to pay for shipping. For security reasons, gift credit cards greater then $100 have to be shipped to the gift purchaser.
Gift credit cards are secure gifts. They are safer then cash because they can be replaced if lost or stolen. Plus, they provide the protection and security features you’ve come to expect from Visa or Mastercard.
If you receive a gift card, you better use it soon, because it can expire. The two main reasons that a person don’t use gift cards is because they don’t have time to shop or they don’t know what to buy. You need to know, that gift credit card can be used for online purchases as well. Just keep in mind that it will take time to deliver Christmas present.
A gift card is a great gift to give or to receive. Be careful that you are not a victim of loosing your money by doing your research on the cards that you are interested in, and the person you are giving it to.