'Gift Cards' May Come Loaded With Fees

November 29, 2004 09:41 AM

'Gift Cards' May Come Loaded With Fees

Excerpt: A study by Consumer Reports Money Adviser found that the cards issued by banks charged up-front fees to the giver of $3.95 to $11.95, and then charged monthly fees of $1.25 to $4.95, typically kicking in after six months to a year. Retailers, on the other hand, have generally given consumers better terms on gift cards this year, partly in response to local legislation in many areas limiting fees and expiration dates. Only 30% of retailers in the survey now charge monthly fees for unused cards, down from 50% last year, and none of them charge up-front fees.

If you're handing out gift cards this holiday season, be careful not to give a sackful of fees to the card issuer at the same time.

Gift cards have taken off as holiday shoppers apparently are running short of time and ideas. This year they even replaced clothing as the No. 1 gift choice, according to consulting firm Deloitte & Touche. But some of these cards charge fees for buying the card, fees for having the card replaced, fees for paying out unused balances and monthly fees if you don't use the card quickly enough.

A study by Consumer Reports Money Adviser found that the cards issued by banks charged up-front fees to the giver of $3.95 to $11.95, and then charged monthly fees of $1.25 to $4.95, typically kicking in after six months to a year. Retailers, on the other hand, have generally given consumers better terms on gift cards this year, partly in response to local legislation in many areas limiting fees and expiration dates. Only 30% of retailers in the survey now charge monthly fees for unused cards, down from 50% last year, and none of them charge up-front fees.

READ FULL STORY ...

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Read all 22 posts in the same category of Banking:

Going Online To Balance Family Budget - Feb 17, 2005
Banks Speed Process For Opening Online Accounts - Feb 04, 2005
Online Banks Are Boosting Yields - Jan 15, 2005
Online Banks Are Boosting Yields - Jan 15, 2005
Momentum Is Gaining for Cellphones as Credit Cards - Jan 10, 2005
Rebels With A Cause, And A Business Plan - Jan 01, 2005
Banks Boost Customer Incentives, But Rates on Savings Remain Low - Dec 27, 2004
Online Bill Paying: How To Get Started - Dec 27, 2004
Banks Test ID Device for Online Security - Dec 24, 2004
Paper Checks Going Bye-Bye? - Dec 08, 2004
Check It Out: Incentives to Pay Bills Online - Dec 07, 2004
Where To Keep Your Rainy Day Fund - Nov 29, 2004
What's Your Bill-Paying Personality? - Nov 28, 2004
Debit Cards Lack Protections Of Credit Cards - Nov 28, 2004
A New Era In Banking Begins - Nov 25, 2004
Automatic Debit Scams - Nov 22, 2004
Bank Accounts Fail To Follow Fed's Lead - Nov 12, 2004
ChexSystems Puts Him In Penalty Box - Nov 09, 2004
"Check 21" Starting in Late October - Nov 03, 2004
Gift Cards 04 - Nov 03, 2004
Save Electronic Checks for Your Taxes - Nov 01, 2004

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