Gift Card Hidden Fees

From CBS Money Watch

You might think that new gift card rules have made the holiday shopping season safe for those wanting to give plastic rather than presents, but you’d be wrong. New rules limit hidden fees on “gift” cards, but if you call your plastic a “prepaid” card, none of the new rules apply.

More than 30 reloadable debit cards geared to teens are being launched in the first week of December, just in time for the holiday rush, according to the New York Times. These teen-oriented cards, like the just-cancelled Kardashian Kard, can charge outrageous fees with impunity.

How high are the fees? The Kardashian Kard broke all previous records, charging a minimum of $99 for one-year’s use. But other cards have a plethora of hidden fees that can eat up the value of the plastic in no time.

Look guys, they have these things called checks, money orders and cash. If you give those, people can choose what they want to buy.

Some cards are regulated by the government. Some for all intents and purposes are not.

You have to read the contract.

In most cases, for most things, it doesn’t matter what the contract says, when you upgrade software and host of other things, you sign or nothing.

This is not one of those.

You have to read the contract.

Annual fees of 99 dollars on a gift card is ridiculous and if you didn’t read the print, you’ll be paying that if you buy the wrong card at the wrong place.

Have some good holidays! Don’t get stolen from! The crooks and scum are hunting you like so many rabbits.

James Pilant