KANSAS CITY, Mo. - Gift cards are a convenient gift, but some customers say they're paying a price for that convenience. Their gift cards are not working.
If you want a gift card for a specific store, you don't necessarily have to buy it at that store. Businesses like Walgreens offer a variety of cards for restaurants, electronic stores, and movie theaters.
John Todd received a $25 AMC gift card as a gift. Instead of using the card right away, he waited for a blockbuster that caught his attention.
When it came time to cash in the card at the big screen, AMC said his card wouldn't work. Todd took the gift card back to Walgreens, but they wouldn't honor it without a receipt.
So he got frustrated and called for action.
"Instead of taking money out of my pocket and kind of feeling jolted. Here I got this $25 dollar credit, gift card and I can't even use it," Todd said.
Walgreens tells call for action the card was never activated at the register, so they offered Todd a new activated gift card. Now John can see his movie of choice.
The easiest way to avoid this hassle is to give the receipt with the gift card. That proof of purchase will save you the same headache.
Make sure you also buy a gift card without fees. Some prepaid cards charge activation fees, and monthly service fees instantly. Most cards these days do charge a service fee, but it's typically after a year. Just read the fine print before picking up the card at the store.
Just in time for the holidays, American Express dropped its monthly $2 fee that it used to charge if money was left on the card after a year. This even applies to cards already purchased. It became effective Sept. 30. The card still costs a few bucks to buy since it's not a store specific card and can be used anywhere. You need to weigh if that convenience is worth the price.
It's expected there will be more changes because the Credit Card Act of 2009 also impacts gift cards. The disclosure of dormancy fees must clearly and "conspicuously" stated. The amount of the fee must be stated, how often the fee will be assessed, and that it will start when there is not activity on the account. Also, the seller of the card will have to tell the purchaser about the charges before it's bought.
The rule also bans expirations dates on gift cards and certificates within five years of the issue date. The expiration date must be clear and obvious.
