If you believe you’ve been the victim of a gift card scam, report the situation to your local police department. Someone may contact you to purchase the item you are selling and tell you they will send a check for more than the purchase price and ask you to give them the difference in the form of a gift card, but once you try to deposit/cash the check, you’ll find out it is fake.įor more information on identifying and avoiding scams, visit: It’s also a good rule of thumb to never make a payment over the phone or by wiring money unless you can confirm that the request for payment is legitimate.Īlso, be on the lookout for gift card scams if you are selling items. Remember, no business or government agency will ask you to make payments with gift cards, so if you are contacted in this manner, it is most likely a scam. These are all red flags to a scam, and once you purchase the gift cards, the scammers will tell you to provide them with the code numbers and PINs that are usually located on the back of cards so that the scammer can redeem them. They contact you by phone or email, and ask you to purchase gift cards in specific amounts to pay them. Unlike credit cards, there typically isn’t any recourse for consumers when a gift card is stolen or used without authorization, so it is very hard to reverse the purchases or get a refund in these situations.Īnother common scam is someone who poses as an attorney for a family member and claims that the family member is in trouble with the law and needs assistance. Scammers often use gift cards as a way to defraud people of their money because they’re just like cash – any misuse is hard to trace. Gift Cards and Gift Certificates Statutes and LegislationįTC Has Gift Card Tips for Holiday Buying National Conference of State Legislatures (NCSL) To learn more about the laws protecting consumers who purchase gift cards, visit: In addition, some states have separate laws that provide added protection in certain circumstances. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. The law also places general limitations on fees. Under the law, a gift card cannot expire until at least five years from the date it was activated. Bank gift cards, which carry the logo of a payment card network (e.g., Visa, MasterCard), are also subject to Credit CARD Act protections and can be used wherever the brand is accepted. These cards can only be redeemed at the stores and restaurants that sell them. The Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act provides several protections for consumers who purchase certain types of gift cards, including store and restaurant (also known as merchant) gift cards. While they seem simple, it is important that both the giver and the recipient read the details for each card to avoid any misunderstandings, and there might be additional policies set by the merchant or bank issuing the card. Gift cards can be a convenient present for the holidays and special occasions.
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