Tips on Giving Gift Cards

Gift cards are a popular and easy gift option for holidays, birthdays, graduations, and other special occasions. They offer flexibility for the recipient and convenience for the giver. In fact, Americans spend billions of dollars on gift cards each year, making them one of the most widely used forms of gifting.

But before you grab a gift card off the rack, it’s important to know that this simple gift can come with some unexpected downsides. From hidden fees to fraud risks, here’s what to consider to ensure your thoughtful gesture doesn’t cause unintended hassles for your recipient.

1. Read the Fine Print
Gift cards may come with terms and conditions that impact their usefulness:

• Expiration dates: While many gift cards can’t expire for at least five years from the date of issue, check to be sure.
• Fees: Some cards, especially bank-issued ones (like Visa or Mastercard gift cards), may charge inactivity or service fees after a certain period.
• Balance requirements: Some cards require the user to know the exact remaining balance to avoid a declined transaction.

Tip: Include the purchase receipt or card terms with the gift, so the recipient has everything they need.

2. Check for Accessibility
Before buying a store-specific gift card, check the following:

• Make sure the store has locations or online access in the recipient’s area.
• If the card is for a restaurant or regional chain, verify its availability near them.
• For digital cards, ensure the recipient is comfortable with online ordering or tech-savvy enough to use it.

Example: A gift card to a regional coffee chain may be useless to someone across the country.

3. Watch for Tampering and Fraud
Gift card scams are on the rise. Take these precautions:

• Inspect the card before purchase. If the packaging is damaged or the PIN is exposed, choose another card.
• Buy from a trusted retailer, preferably in person or directly from the store’s website.
• Keep your receipt in case the card is lost, stolen, or doesn’t activate correctly.

Some scammers record card numbers from store displays and wait for them to be activated before draining the funds.

4. Avoid Buying Gift Cards from Third-Party Resellers
Be cautious with gift cards sold through online marketplaces or auction sites:

• Counterfeit or already-used cards are a common scam.
• If you’re going digital, buy only from reputable vendors or the brand itself.

Bonus tip: Many retailers offer digital gift cards with the ability to personalize and schedule delivery, which can be great for last-minute gifts.

5. Make It Easy to Use
If you’re giving a gift card, consider the following:

• Opt for ones with long expiration windows and no fees
• Provide clear instructions or help the recipient activate it if needed
• If giving to someone who may not be tech-savvy, consider a card from a well-known national brand with easy redemption options

Final Thoughts
Gift cards can be a thoughtful, flexible, and convenient option when used wisely. By being mindful of the details and choosing the right card, you can ensure your gift is both easy to use and genuinely appreciated.

For help building smart spending habits, preventing fraud, or giving meaningful financial gifts, speak with a Money Coach. Schedule a session with a Money Coach today.