Frequently Asked Questions

Closed-loop gift cards can only be used at specific retailers or businesses that issued them. Examples include Amazon, Starbucks, or Target gift cards that can only be redeemed with those specific merchants.

Open-loop gift cards carry a payment network logo (like Visa, Mastercard, American Express) and can be used at any merchant that accepts that payment network. They function more like prepaid debit cards and can be used virtually anywhere that accepts that card network.

The main difference is that closed-loop cards have limited acceptance but typically don't charge fees, while open-loop cards offer wider acceptance but may include activation fees or other charges.

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

• Store-specific gift cards (closed-loop) often have no expiration date at all, though this varies by retailer.
• Bank-issued gift cards (open-loop) like Visa or Mastercard gift cards typically expire after 5 years, as indicated on the card.

It's always best to check the terms and conditions of your specific gift card for expiration policies. Some states have laws that provide additional consumer protections beyond federal law.

Fees can vary widely depending on the type of gift card:

• Closed-loop retail gift cards typically don't have fees.
• Open-loop gift cards (like Visa/Mastercard) may have several types of fees:
• Activation or purchase fees (typically $2.95-$6.95)
• Inactivity or dormancy fees (if the card isn't used for a certain period, usually 12 months)
• Replacement fees for lost or stolen cards
• Foreign transaction fees if used internationally

By federal law, inactivity fees can only be charged after a card has been inactive for at least 12 months. Any fees must be clearly disclosed before purchase.

There are several ways to check your gift card balance:

1. Online: Most retailers and gift card issuers provide balance lookup tools on their websites. Look for a "Gift Card Balance" or "Check Balance" section.
2. Phone: Call the customer service number printed on the back of the card.
3. In-store: Visit the retailer and ask a cashier to check the balance for you.
4. Mobile App: Many retailers have apps that allow you to register your gift card and check the balance.

For bank-issued gift cards (Visa, Mastercard, etc.), you'll typically need to visit a specific website printed on the card or call the phone number on the back of the card.

To check your balance, you'll usually need the card number and sometimes a PIN or security code found on the back of the card.

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

• Retailer Gift Cards (Closed-Loop): These can typically be used on the retailer's website by entering the card number and PIN (if applicable) during checkout, similar to using a credit card.
• Bank-Issued Gift Cards (Open-Loop): These work like regular credit cards for online purchases. You'll need to enter the card number, expiration date, and CVV code at checkout.

Important tips for online use:

• For online purchases, you typically need to register your billing address for bank-issued gift cards.
• Some retailers allow you to add gift cards to your account for easier checkout.
• If making a purchase larger than your gift card balance, have a second payment method ready for a "split payment."

If your gift card is lost or stolen, take these steps immediately:

1. Contact the retailer or issuer: Call the customer service number for the gift card issuer as soon as possible.
2. Provide proof of purchase: Have your receipt, the gift card number (if you have it), or the purchase information ready.
3. Request a replacement: Many issuers can freeze the remaining balance and issue a replacement card if you can provide adequate proof of purchase.

Important to know:

• Replacement policies vary widely between retailers and issuers.
• Some may charge a replacement fee.
• Without proof of purchase or the card number, recovery may be difficult or impossible.
• Bank-issued gift cards often offer better protection than store gift cards if they've been registered.

Prevention tip: Always keep your gift card receipt and take a photo of the front and back of the card, including the card number and security code, as soon as you receive it.

An e-gift card (or digital gift card) is an electronic version of a traditional gift card that exists entirely online. Here's how they work:

• Delivery: E-gift cards are delivered via email, text message, or through an app, usually within minutes of purchase.
• Format: They contain a unique card number, PIN (if applicable), and often a barcode or QR code that can be scanned at checkout.
• Redemption: They can be redeemed online by entering the card number during checkout, or in-store by showing the digital card on your mobile device to be scanned.
• Storage: E-gift cards can be stored in digital wallets (Apple Wallet, Google Pay), retailer apps, or specialized gift card management apps.

Advantages of e-gift cards:

• Immediate delivery, perfect for last-minute gifts
• No physical card to lose or damage
• Easy to track and manage through email or apps
• Environmentally friendly alternative to plastic cards

Most major retailers now offer e-gift cards in addition to physical gift cards, with identical terms and redemption options.

Yes, many physical gift cards can be transferred to digital wallets, but compatibility varies by retailer and card issuer. Here's how it typically works:

1. Retailer Apps: Many retailers allow you to enter your physical gift card information into their mobile apps, effectively digitizing your card.
2. Digital Wallets: Services like Apple Wallet, Google Pay, and Samsung Pay support adding certain gift cards. Look for "Add to Wallet" options when checking your gift card balance online.
3. Third-Party Apps: Apps like Stocard, Gyft, or Gift Card Wallet allow you to store and manage multiple gift cards in one place.

How to add cards to a digital wallet:

• You'll typically need the card number and PIN
• Some retailers require you to create an account first
• Some cards may need to be scanned using your phone's camera

Note: Not all retailers support digital wallet integration. Major chains are more likely to offer this feature than smaller businesses. Bank-issued gift cards (Visa/Mastercard) generally cannot be added to digital wallets unless specified by the issuer.

To protect your gift cards from fraud, follow these security practices:

1. Buy from reputable sources: Purchase gift cards directly from the retailer or authorized sellers. Avoid buying from classified ads, auction sites, or unauthorized resellers.
2. Inspect physical cards: Before purchasing, check that the packaging is intact, the PIN is not exposed, and the card shows no signs of tampering.
3. Keep your receipt: Store your receipt separately from the card. It's crucial for verification if there's a problem.
4. Register when possible: Some gift cards allow registration with the issuer, providing additional protection.
5. Document card information: Take photos of the card front, back, card number, and security code, then store these securely.
6. Use strong passwords: If your gift card is stored in an online account, use a strong, unique password and enable two-factor authentication if available.

Warning signs of gift card fraud:

• Scratched PIN areas on cards in retail displays
• Cards with exposed or missing PINs
• Unusually discounted gift cards
• Requests to pay bills, taxes, or fees using gift cards (always a scam)

If you suspect fraud, immediately contact the retailer or card issuer and report the issue.

Be aware of these common gift card scams:

1. Payment Scams: Scammers pretending to be government agencies, utilities, tech support, or relatives in emergency situations demanding gift cards as payment. Remember: No legitimate organization requires gift cards as payment.
2. Card Draining Scams: Fraudsters record card numbers and PINs from in-store displays, then check online repeatedly until the cards are activated, after which they quickly drain the funds.
3. Fake Gift Card Resellers: Websites or individuals offering heavily discounted gift cards that turn out to be stolen, fraudulent, or already depleted.
4. Fake Gift Card Generators: Apps or websites claiming to generate working gift card codes, which are either scams to collect your personal information or promote fraud.
5. Email Phishing: Emails claiming to offer free gift cards or gift card balance checks that link to fake websites designed to steal your personal information or install malware.

Red flags that indicate a scam:

• Anyone asking you to pay bills, taxes, or fees with gift cards
• Urgent requests requiring immediate action
• Offers that seem too good to be true (e.g., gift cards at 50%+ discounts)
• Requests to share gift card PINs or numbers over phone, text, or email
• Unsolicited communications about gift card prizes or rewards

If you've been scammed, report it to the FTC at ReportFraud.ftc.gov, contact the gift card issuer immediately, and file a police report for significant losses.

Several laws protect gift card users in the United States:

1. Credit CARD Act of 2009 (Federal): This provides significant protections including:
• Gift cards cannot expire for at least 5 years from the date of purchase or last load
• Inactivity fees cannot be charged unless the card has been inactive for at least 12 months
• Fee disclosures must be clearly stated before purchase
• Limits on the number and types of fees that can be charged
2. State Laws: Many states have enacted their own gift card laws that may provide additional protections beyond federal law. For example:
• Some states prohibit expiration dates entirely (California, Maine, etc.)
• Some states ban post-purchase fees completely (Colorado, Connecticut, etc.)
• Some states have specific rules about redeeming small balances for cash (California allows redemption if balance is under $10)
3. Escheat Laws (Unclaimed Property): In many states, unused gift card balances may be considered "unclaimed property" after a certain period, requiring businesses to report and surrender these funds to the state.

Important notes:

• These protections generally apply to retail gift cards and bank-issued gift cards.
• There are some exceptions, such as promotional cards received for free, rewards cards, phone cards, and certain reloadable prepaid cards.
• State laws vary significantly, so check your specific state's regulations for additional protections.

If you believe your rights have been violated, contact your state's consumer protection office or the Consumer Financial Protection Bureau (CFPB).

Yes, you can legally sell or exchange unwanted gift cards in most cases, though there are some important considerations:

Options for selling or exchanging gift cards:

1. Gift Card Exchange Websites/Apps: Platforms like CardCash, Raise, and GiftCardGranny allow you to sell your gift cards for cash, but typically at a discount (usually 60-90% of the card's value).
2. In-person Exchange Kiosks: Some retailers offer gift card exchange kiosks where you can trade in unwanted cards for cash or store credit.
3. Person-to-Person Sales: You can sell cards directly to friends, family, or through marketplaces, though this carries more risk for both parties.
4. Retailer Trade-in Programs: Some retailers allow you to trade gift cards from other stores for their own store credit, though usually at a reduced value.

Important legal and practical considerations:

• Check the gift card's terms and conditions, as some explicitly prohibit resale.
• Be aware that some states have restrictions on gift card resale.
• Use reputable exchange services with buyer/seller protection.
• Keep records of the original purchase if possible.
• Be cautious of potential scams when selling privately.

Note: While reselling gift cards is generally legal, using gift cards as part of money laundering schemes or purchasing them with fraudulent payment methods is illegal. Always engage in legitimate transactions with reputable services or individuals.