Gift Cards are popular with those who are not sure what someone would like to receive as a gift. They are easy to purchase, send and use. However, many people may not be aware that gift cards often have fees that can reduce their value. Knowing how to avoid gift card fees ensures you or the one you have gifted will receive the full value of that gift.

Fees for gift cards are becoming an increasing problem. So many people have objected to their cards losing value that the Attorney Generals in three states have filed lawsuits against some card companies.http://www.cbsnews.com/video/watch/?id=660468n Massachusettes Attorney General Thomas Reilly has said of gift cards, "It is the gift that keeps on taking and taking and taking until its gone." Knowing how to avoid gift card fees puts you ahead of the game and ensures that you won't be left with a worthless gift card.

Gift Card Fees come in several forms. There are fees for using the card, and fees for not using the card. Some cards do not have any fees, or even expiration dates, but some lose value over time and can eventually become worthless, even if you don't use them. Others can assess a fee just for checking the balance. Therefore, it is important to know just what the terms and conditions are for the card you are giving or have received.

Bank issued gift cards can typically carry any of the fees listed above, and frequently more than one of them. Bank gift cards are those which carry a major credit card company logo on the front of the card.

Retailers do not usually charge a fee to the purchaser of the gift card, as they receive the full benefit of the purchase price. However, those purchased at banks frequently have a fee at the time of purchase that can vary from $2 - $10, and they could have other fees that will apply for the card recipient.http://www.consumerreports.org/cro/money/shopping/shopping-tips/gift-card-pitfalls-12-07/overview/gift-card-pitfalls-ov.htm

Some bank issued cards have a hidden fee that kicks in each time the balance is checked on the card.http://www.forbes.com/2008/11/26/gift-cards-shopping-forbeslife-cx_jp_1128lifestyle.html Renewal fees, replacement fees are both possibilities if you have a bank gift card.http://www.cbsnews.com/video/watch/?id=660468n

Some gift cards, such as Visa gift cards, charge a monthly administrative fee. In the case of the Visa gift card, it is $2.50 per month which starts six months after activation. If left unused, cards with this type of fee will be worthless after a period of time, even if they never expire. Gift cards other than the Visa card can also carry a monthly fee.

The remaining types of fees can be on any type of card. Some are less likely to have any types of fees, such as many merchant gift cards.

The expiration dates themselves can also be seen as a fee, as the card instantly loses any value left as of the expiration date if not used completely.

Each gift card that is issued has a set of terms and conditions. However, these are not always readily available. Some can be found where the card is purchased, some on the card itself, and some in the packaging the card is in. The only place that you can be sure to get all of the information is at the issuer's website. Read both the FAQ page and the terms and conditions page.

...if you are the purchaser - make sure you are getting the best card for your money. By buying a retail merchant gift card, you can avoid the purchasing fee banks charge, most of the additional fees, and in many cases, even get a card that does not expire. In any case, make sure the recipient is aware of any fees that will apply.

...if you are the recipient - find out what fees are associated with the card you have before attempting to check the balance or use the card. If you find there are fees that will take away the value of the card significantly before you are able to use it, you have the option to exchange the card through a card swap service. At the very least you will be aware of any expiration dates or how long you have until fees begin to chip away at the value of the card.

Then follow these easy steps when using the card:
1. Make sure you exchange or use the card before the card loses value.
2. Avoid checking the balance if there is a fee for that... just keep a running total of what is on the card.
3. If there is a fee for each use, use the card for bigger purchases instead of many small ones.

By learning the types of fees and which kinds of cards typically have them, you can avoid those cards altogether.

-Types of Fees

• Fee at time of purchase
• Fee for checking balance
• Monthly Fee
• Renewal Fee
• Replacement Fee
• Fees for each use
• Expiration

Byron Pitts of CBS News Boston reports on the different types of fees to watch for with gift cards. He brings to light one woman's experience, and what some states are doing about this growing trend.
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