Frequently Asked
Questions

A gift card is a prepaid stored-value money card, usually issued by a retailer or bank, that can be used as an alternative to cash for purchases within a particular store, a group of stores, or a specific location. Gift cards can come in physical plastic card form or as digital e-gift cards with codes that can be used for online purchases or added to digital wallets. They are designed to be purchased by one person and given to another as a gift, although many people also buy them for personal use.

There are two main categories of gift cards:

1. Closed-loop (or Store-specific) Gift Cards: These can only be used at specific retailers or restaurant chains that issued the card. Examples include Amazon gift cards, Starbucks gift cards, or Target gift cards.

2. Open-loop (or Network-branded) Gift Cards: These carry the logo of a payment network (such as Visa, Mastercard, American Express) and can be used anywhere that accepts that payment network. These typically have activation fees and sometimes have maintenance fees.

Additionally, gift cards come in physical (plastic) and digital (e-gift card) formats. Digital gift cards are delivered electronically via email, text, or app and can be used online or displayed on a mobile device for in-store purchases.

In the United States, the Credit CARD Act of 2009 provides that gift cards cannot expire until at least five years from the date they were activated. However, policies can vary:

Store-specific gift cards: Many major retailers have eliminated expiration dates entirely on their gift cards.

Bank-issued gift cards: These typically do have expiration dates (usually at least 5 years from issue) and the expiration date should be clearly disclosed.

International gift cards: Expiration policies vary by country. Some countries have regulations similar to the US, while others may allow shorter expiration periods.

Always check the terms and conditions for any gift card you purchase or receive to understand its specific expiration policy.

Fees on gift cards depend on the type:

Store-specific gift cards: Most retail gift cards do not charge purchase fees or maintenance fees. However, some may charge fees for checking balances by phone or replacing lost cards.

Bank-issued gift cards (like Visa or Mastercard gift cards): These typically charge:

• Purchase/activation fees (typically $2.95 to $6.95)
• Inactivity fees after 12 consecutive months of non-use
• Replacement fees for lost or stolen cards
• Balance inquiry fees (in some cases)

Under U.S. federal law, maintenance fees cannot be charged until a card has been inactive for at least 12 months. All fees must be clearly disclosed before purchase.

What happens when a gift card is lost or stolen depends on several factors:

Registered cards: If you've registered the gift card (where that option is available), you may be able to report it lost or stolen and have the remaining balance transferred to a new card, though a replacement fee may apply.

Unregistered cards: For unregistered gift cards, policies vary by retailer or issuer. Many treat unregistered gift cards like cash – if lost or stolen, the value may not be replaceable.

Proof of purchase: Having the original purchase receipt can help in getting a replacement from some retailers, even for unregistered cards.

Digital gift cards: These are generally more secure since they're tied to your email or account and can often be accessed again if lost.

If your gift card is lost or stolen, contact the retailer or card issuer immediately to report it and ask about their specific replacement policies.

To verify a gift card's legitimacy:

• Purchase source: Buy directly from the official retailer or authorized resellers.
• Physical inspection: Check for signs of tampering like scratched PIN areas, unusual packaging, or activation barcode alterations.
• Card verification: Most legitimate gift cards have a toll-free number or website where you can verify the card is authentic and check its balance.
• Digital verification: For digital gift cards, verify the sender's email address is the official retailer domain and not a spoofed address.
• Packaging: Legitimate cards typically come with terms and conditions, clear branding, and professional packaging.

If a gift card deal seems too good to be true (heavily discounted), it often is. Avoid purchasing gift cards from unofficial sources like online classified ads or from strangers.

Common gift card scams include:

1. Tampered physical cards: Scammers record card numbers in stores, wait for activation, then drain the balance.
2. Payment scams: Fraudsters impersonating officials or companies demand payment via gift cards.
3. Fake giveaways: Scam emails or social posts offering free gift cards to steal personal information.
4. Discount resale scams: Selling already-drained or fake gift cards at steep discounts.
5. Gift card verification scams: Asking you to "verify" a gift card by reading the number and PIN.

To protect yourself:

• Only buy from official retailers or authorized resellers
• Inspect physical cards for tampering
• Never give gift card numbers to unsolicited callers
• Understand that no legitimate government agency or company accepts gift cards as payment for taxes, fines, or services
• Be suspicious of heavily discounted gift cards from unknown sellers
• Check balances immediately after receiving cards
• Keep receipts until the card is fully used

For secure gift card storage:

Physical gift cards:

• Keep cards in a secure, designated location like a wallet section or card organizer
• Take photos of the front and back (including card number and PIN) as backup
• Keep original receipts with purchase information
• Register the card with the retailer if that option is available
• Treat gift cards like cash - don't leave them visible in public

Digital gift cards:

• Save e-gift card emails in a specific email folder
• Screenshot or save digital card information in a secure password manager or notes app
• Add digital gift cards to your digital wallet when possible
• Use retailer apps that support gift card storage
• Avoid storing gift card numbers in unsecured text files or notes

Regardless of type, always use strong, unique passwords for any accounts where gift cards are stored and enable two-factor authentication when available.

There are several ways to check a gift card balance:

1. Online: Visit the retailer's official website and look for a "Gift Card Balance" or "Check Balance" section. You'll typically need to enter the card number and PIN or security code.
2. Mobile app: Many retailers have apps that allow you to check gift card balances after adding the card to your account.
3. Phone: Call the customer service number printed on the back of the gift card to check the balance through an automated system or with a representative.
4. In-store: Visit the retailer and ask a cashier or customer service desk to check the balance for you.
5. Receipt: Some retailers print the remaining balance on your receipt after a purchase.

For online or phone balance checks, you'll need the gift card number and often a PIN or security code found on the back of the card or in the email for digital gift cards.

Always use the official retailer website or phone number for checking balances to avoid phishing scams.

Yes, most gift cards can be used for online purchases, but the process varies by type:

Store-specific gift cards:

• Can be used on that retailer's website during checkout
• Usually requires entering the gift card number and PIN/security code
• Some retailers allow adding gift cards to your online account for easier use

Open-loop gift cards (Visa, Mastercard, etc.):

• Can be used on most websites that accept that payment network
• Must be used like a credit card during checkout
• May require registering your zip code for address verification

Digital e-gift cards:

• Designed specifically for online use
• Can be redeemed by entering the code during checkout
• Some can be added to digital wallets or retailer accounts

Important tips for online use:

• Make sure you have the full card balance before making a purchase
• Some online retailers don't accept split payments (multiple payment methods)
• Keep the gift card information until your order is successfully delivered

For small remaining gift card balances, you have several options:

1. Combine with another payment method: Most retailers allow you to use a gift card for part of a purchase and pay the remainder with another payment method.
2. Purchase something small: Find an inexpensive item that matches your remaining balance.
3. Add to your account: Some retailers allow you to add gift card balances to your online account for future use (especially useful for services like Amazon, Starbucks, etc.).
4. Sell or trade: Some gift card exchange sites accept cards with small balances, though you'll get less than face value.
5. Cash out: In some states, retailers are required to give cash back for gift cards below a certain amount (typically $5-$10). Check your state's laws.
6. Donate: Some charities accept gift cards with small balances as donations.
7. Combine balances: Some retailers allow you to combine multiple gift cards into one.

Always check the specific retailer's policy on handling small balances, as they vary significantly.

Whether a gift card can be reloaded depends on the specific card and retailer:

Reloadable gift cards: Many major retailers offer reloadable gift cards, including:

• Starbucks
• Amazon
• Target
• Walmart
• Many grocery store chains
• Most coffee shop chains
• Many fast food restaurants

Non-reloadable gift cards: Many traditional gift cards, especially one-time promotional cards or those from smaller retailers, cannot be reloaded.

How to reload (where available):

• In-store at the retailer's location
• Through the retailer's website or app
• By phone in some cases
• At certain third-party locations that offer gift card services

To determine if your specific gift card is reloadable, check the terms and conditions, the retailer's website, or contact their customer service directly.

The safest places to purchase gift cards include:

1. Directly from the retailer: The retailer's physical stores or official website offer the highest security and legitimacy.
2. Authorized retailers: Major grocery stores, pharmacies, and big-box stores that sell gift cards from an attended register or customer service counter.
3. Bank websites: For general-purpose gift cards (Visa, Mastercard, etc.), purchasing directly from the issuing bank's website.
4. Reputable online retailers: Major online marketplaces like Amazon, when the gift cards are sold directly by the marketplace (not third-party sellers).
5. Established gift card marketplaces: If buying discounted cards, use only well-established gift card exchange platforms with buyer protections.

Places to avoid or use with caution:

• Online classified ads or auction sites from unknown sellers
• Social media offers from unknown accounts
• Heavily discounted cards from unfamiliar websites
• Street vendors or unauthorized resellers
• Email offers from unfamiliar sources

When buying in physical stores, always check that packaging is intact and security features haven't been tampered with. Keep your receipt until the card has been fully used.

When purchasing physical gift cards, check for these security features and warning signs:

Security features to verify:

• Intact packaging without tears, cuts, or evidence of resealing
• PIN number or security code that's covered by an unscratched secure layer
• Activation barcode that doesn't show signs of tampering or covering
• Card should match the retailer's current design (colors, logo, layout)
• Quality printing without smudges or alterations
• Proper weight and material (not flimsy or poorly constructed)

Red flags to watch for:

• Exposed or scratched PIN area
• Signs that packaging has been opened and resealed
• Barcode or magnetic strip that appears altered or damaged
• Cards accessible on open displays rather than behind counters
• Missing terms and conditions
• Inconsistent branding or outdated retailer logos

Best practices:

• Choose cards from behind the counter or in sealed packaging
• Watch the activation process at checkout
• Keep the purchase receipt separate from the gift card
• Verify the balance immediately after purchase
• Register the card if that option is available

Buying discounted gift cards can be safe if you take the right precautions:

Safer sources for discounted gift cards:

• Established gift card marketplaces with buyer protections and guarantees
• Promotional sales directly from retailers or authorized sellers
• Warehouse clubs like Costco or Sam's Club that offer gift cards at slight discounts
• Credit card reward programs that offer discounted gift cards

Risk factors to consider:

• Extremely deep discounts (over 20-25%) often indicate potential fraud
• Individual sellers on classified sites pose higher risks
• New or unknown gift card exchange websites may lack proper verification
• Cards with no verification guarantee or balance protection

Safety tips:

• Research the marketplace or seller's reputation before purchasing
• Look for marketplaces that offer balance verification and buyer guarantees
• Check for buyer protections if the card turns out to be invalid
• Verify the balance immediately upon receipt
• Use the gift card quickly after purchase
• Pay with methods that offer purchase protection (credit cards)
• Be extremely cautious of person-to-person exchanges

Remember that legitimate discounts on gift cards typically range from 2-15% off face value. Anything significantly higher should raise concerns about legitimacy.