GREEN BAY, WI (WTAQ) – Gift cards are an easy answer for anyone looking to find a useful present around the holidays, but fewer people seem to be going that route than we’ve seen in the past.
Gift cards are falling in the ranks of popular gifts.
“Gift cards used to be the number one gift to give, but they’re not. The National Retail Federation says this year they’ve dropped in popularity behind apparel (58%), toys (33%), electronics (31%), and entertainment (28%),” says Susan Bach from the Better Business Bureau.
After about a decade, gift cards have dropped down to having just about 27% of gift buyers opting to use them as a present.
One major factor that could be playing a role is the rising frequency of gift cards being associated with scams.
“There is a lot of fraud associated with gift cards now, and people are skeptical that it’s going to the intended place,” Bach tells WTAQ News, “make sure that a scammer hasn’t gone in there and recorded any valuable information. When that happens, they could use the balance of that card before your gift recipient gets the chance to use it.”
No matter where gift cards are displayed in the store, thieves are known to remove gift cards from the display rack and record the numbers associated with that card, including the activation PIN. Before purchasing a gift card, look carefully at the packaging for any tears, wrinkles, or other indications of tampering, and see if the PIN is exposed. If anything looks suspicious, it’s probably best to take a different card and turn in the compromised card to the store’s Customer Service Desk.
Bach also points out that gift cards can lose value without the tampering of scammers.
“Gift cards should be treated like cash. If it’s lost or stolen, you’re out of luck. If that does happen to you, make sure you report it. The sooner you report it, the more likely you will be able to retain some of that money,” Bach says.
Most issuers have toll-free telephone numbers to report a lost or stolen card – find it on the card or online.
It’s also important to research how the card works. Not all retailers have the same policies, so reading up on the terms and conditions could save frustration later on.
Bach says “federal law says that gift cards can’t expire in less than five years. However, if there’s no activity for twelve months they could start applying dormancy fees.”
It’s also recommended to register a gift card if given the option. Registering makes it easier to protect the balance, allowing you to report any issues sooner and potentially end up saving money that is stored on the card.
For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002.
