advertisement
Looking for something on the site? Search for it here! Also see Clark's Greatest Hits

Nov 14, 2008 -- The dangers of gift cards this holiday season

There are so many warnings about how dangerous it can be to buy gift cards this Christmas. Under current law, if a restaurant or retailer goes bust, it falls to the bankruptcy court judge to determine the rights of gift card holders. But most judges have been unanimous in wiping out gift card holders.

Now Clark has learned that various consumer groups are petitioning the FTC to issue guidelines that would require retailers and restaurants to escrow gift card money. This would protect consumers and safeguard them from getting burned in the event a business goes bust.

There is one kind of gift card that Clark likes -- the kind where you get more than you pay for. For example, some restaurants might offer $125 worth of food if you buy a $100 gift card. Yet even Clark has gotten burned on this type of gift card once.

The real solution? Use the penny-pincher's no-gift-card certificate!

UPDATE: Consumers' Union has a list of the key features of many state gift card laws.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

Avg. rating: N/A

What others are saying

  • Walmart Visa Debit Crad : Show INVALID
    I personally bought 2 Walmart Visa Giftcards today. Both of them are showing up as invalid on the website. i call the number on the back and was transferred to loss management. I have to fax in a copy front and back of card, the placard, my name, phone number and support ticket # to get a response.

    I went to the store and the asst. manager (manager will not be on duty till monday) was unhelpful. He even suggested that I was switching out giftcards, this after he opened the second package himself at my request and verified that the card inside the package was invalid.

    Please be careful with walmart visa giftcards, smells like a scam to me.
  • Working today
    Okay, I tried checking my account again today online and it said zero; I called in and entered my card number but this time, instead of being told about techincal difficulties, I was told that my balance was zero. I was given an option to listen to past transactions. There were none, but I also had the option to press another number to dispute a charge. I got through to a real person at last!! I explained the situation to her and gave her some info, and now the balance online shows to be correct. However, I have not yet tried to use it, so only time will tell...
  • Having same problem as Sharon
    Sharon - I am having the exact same problem. In 2008 I bought a Visa Gift Card from Walgreen's and it worked great, so I did the same thing this year. I activated it and attempted to use it online but it will not work. I get the same message about technical difficulties. I don't know what to do next.
  • Walmart Visa Gift Card
    I purchased 2 Visa gift cards as Christmas gifts. Neither card works. The phone number on the back of the card has an automated message "experiencing technical difficulties." Walmart said to go to Visa, Visa said to go to GE Money, GE Money is impossible to get through to. How do I get my money back?
  • Walmart VISA gift cards
    Walmart clerk did not advise purchaser of activation number on the receipt. Fortunately he found the receipt and provided us with the numbers that don't work. Thanks Nita for the headsup on the deactivation.
    I hate Walmart and the rip-off capitalism it stands for!
  • Walmart Visa Gift Cards
    I received a Wal-Mart gift card for Christmas for $100. When I went to Wal-Mart to use the card it was invalid. I had to call the person that gave me the gift card and get an authorization number off the receipt and call a 1 800 number and give personal information to set up the visa card and activate it. While on the phone with the associate to activate the card I was asked if I would like to purchase a second card. Of course, the answer was no. After inquiring, I was notified after I use all the funds off the card I would have to call back and cancel the visa card in my name if I would not like to continue to have a visa card. I will definitely ask for the discontinuation to be put in writing and emailed to me. I would not recommend a Wal-Mart Visa card as a gift to anyone.
  • Walmart gift cards
    I am very unhappy with Walmart gift cards. We received $150 in Walmart Visa gift cards. We went to use them less than six months later and found they had "expired". In reading the material included with the card it mentions that fees would not be taken until after 13 months on unused balances. When I took them back to Walmart they directed me to the customer service number located on the back of the card. When I called the number it is a completely automated system, unless you want to pay an additional fee to talk to someone. Also the "expired" cards can be replaced for a $5.00 fee. So in order to use our gift we will have to lose $10 with the 2 cards we received plus any additional amounts if I talk to a live person. Seems like poor business practices to slide an "expiration date" on an otherwise valid card just to make additional money. Bad Walmart!
  • Circuit City
    I purchased a $300.00 camera from Circuity city and want to return it. Only problem is they mail refund check for any amount over $100.00. Do you think I will ever see my $300 if I return the camera?
  • Lowest Common Denominator
    This is yet again one of many ridiculous advices to cater to the lowest common denominator. Common sense tells you not to buy a gift card from a company that is falling on hard times. Think now is a good time to buy one from Circuit City? I don't think that concern applies for retailers that are financially stable. Wal-mart, and other reputable firms are safe and good gift card candidates. And if it's the retailer you're worried about - there's always the option to get a vanilla visa or AMEX gift card that's literally accepted EVERYWHERE.

    Meanwhile, I'll watch out for Clarks helpful tip on not to touch a hot iron..
  • LOVE bookstore gift cards
    FoxTale Book Shoppe in Woodstock has great gift cards that come with a free coffee mug. This gives people time to pick out something THEY like.
  • WalMart Gift Cards
    I can validate the Walmart Gift Card scam. The cashiers know how to keep your money. After you buy the gift card, examine your receipt very carefully AND go to the service desk and ask for a balance check on each gift card. It is a hassle, but less embarrassing that being accused of stealing blank gift cards.
  • gift cards
    I have purchased and received many gift cards and have never had a problem.
  • Gift Cards
    Just as with any 'gift' always ask for a gift receipt to give with it...
  • WalMart fails to honor gift cards
    My son,who graduated in June, loves WalMart. We told several family and friends that a WalMart gift card would be great for Caleb. I am disgusted to report that 3 of the 5 gift cards he got from WalMart DIDN'T WORK at all. I know my neighbor bought him a $40 gift card. I emailed Walmart about this issue. Never even got a response. At this season I want other people to be warned. DO NOT BUY WALMART GIFT CARDS. THEY DO NOT WORK AND THE Company doesn't work.
send to a friend  view as printer-friendly  RSS feeds
advertisement
advertisement
THIS WEEK'S POLL
advertisement