Personal Growth Blog for Philip Tirone - Credit Scoring Expert and Champion for the Underdog » Gift Cards and Gift Certificates

Do Gift Cards Expire?

admin — Fri, 22 Jan 2010 01:20:37 +0000

If you are still carrying around gift cards you received this Christmas, you may be wondering, Do gift cards expire? It varies from state to state, but in many states, they can and will eventually expire. For that and other reasons, it is best to use quickly.

Unfortunately, as much as $5 billion in gift card balances will go unspent this year, potentially resulting in a windfall to the merchants who sell the cards. Although the rules vary, depending on where you live and what type of card you have, the safest course is to use the balance of the gift card or gift certificate within a year from its issuance.

Now is a particularly good time to take advantage. Many retailers have slashed prices in the wake of a Christmas season, and a struggling economy might mean even more motivation to move inventory. If you don’t enjoy shopping, check to see if you can use your gift card online.

If you really cannot see yourself using that your card, within a year, check out resale sites like plasticjungle.com, giftcardrescue.com, or swapagift.com. Plasticjungle.com, for example, allows you to sell your cards with a minimum value of $25 for up to 85 percent of the balance, exchange them for credits at other websites, like Amazon.com, or donate them to charity.

So do not forget about that gift card eating a hole in your wallet. Take advantage of sales, shop online, or exchange it for cash because yes, gift cards do expire in some states.

Gift Cards with No Fees – What’s Really Needed

admin — Mon, 21 Dec 2009 18:40:46 +0000

The Federal Reserve is continuing to hone in on unfair practices with plastic money, but in my opinion they are not going far enough – we need Gift Cards with no fees. After passing the Credit CARD Act earlier this year, it has now proposed rules that would “restrict the fees and expiration dates that may apply to gift cards,” said a press release last week. Under the pending rules, gift card terms and conditions would be required to be stated clearly.

According to the Federal Reserve’s website:

The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded.

Gift cards are basically cash that a person pays to a business, in advance. In fact, Consumer Reports states that one out of four gift cards will go unused, at a cost of $8 Billion Dollars!

If you are going to make real change in this world, do what is right and fair. Gift cards with no fees is the right move.

Give me your thoughts below!