New scam by credit card companies

[Tman]

My daughter received several VISA debit gift cards for Christmas. I was looking at the back of the packaging the card came in. This $25 gift card has a $3.95 purchase transaction fee, a $2.00 per month maintenance fee, and a $5.95 lost/stolen card fee. What kind of scam will they think of next?

[tobee43]

tman...yes, we learned about them last year or so...

what got us going was a "rebate" offer and we get this visa gift card....with the same crap on it...what rebate is that?????

i thought all this banking scamming was suppose to be stopped by congress...right!!!!

can't wait to see what they will be doing to us next!

[despritfreya]

This is why "cash is king". It would have made a lot more sense for those giving the gift to have simply sent a check for the amount of the gift. With the exception of some gift cards, I always send checks.

Des.

[tobee43]

This is why "cash is king". It would have made a lot more sense for those giving the gift to have simply sent a check for the amount of the gift. With the exception of some gift cards, I always send checks.

Des.

exactly.....i so agree. we don't give "gift" card even from stores anymore with all the restrictions even the retailers have applied to their gift cards.

cash is most certainly the way to go nowadays. (or checks for long distance giving).

[ryan]

This $25 gift card has a $3.95 purchase transaction fee, a $2.00 per month maintenance fee, and a $5.95 lost/stolen card fee. What kind of scam will they think of next?

That has to be the WORST card I have ever heard of!!! Total ripoff.

[clevelandmom]

What a RIP OFF! They should print a disclaimer on the back of those cards that say, "purchase of this product may cause loss of appetite, nausea, vomitting, irritability, loss of hair, loss of sleep, extreme stupidity and constipation." LOL!

[helpme2010]

I understand many offer the $5 or so activation fee (which usually goes to the buyer). The ones I have received have no fees until after I believe 12 months. Under normal usage, I wouldn't incur any fees, but you have to read these things carefully.

It is sad, but the poorest of people get the most screwed in so many types of financial situations.

[bcohen]

I am assuming this is the "The Ideal Gift" card issued by MetaBank, and sold at many retailers? If so, the $3.95 purchase transaction fee is the amount over and above the $25 face value paid by the gift giver at the time the card is purchased. It is not deducted from your balance when you receive the card as a gift. The $2.00 per month maintenence fee is after 24 months, according to the card I have in front of me. Most rational people would spend a gift card ASAP, so I don't see this as being a problem either.

Of course I agree that cash is king, but I don't think these Visa gift cards are that bad of a deal, though obviously on a lower face-value such as $25 or $50, the purchase fee is comparatively large. On a $100 or $200 card, it's not that big of a deal.

In any case, I'd much rather receive a Visa or Amex gift card that I can use anywhere than a gift card that's only good at one store, which I may not even shop at, or may not need anything from right now.

[helpme2010]

I asked for purely gift cards this year, including Visa. The worst gift cards or gifts are from places I never want to do business with. I have received a gift that didn't fit from places that were 50 miles away and stuff I never liked, so guess what, future re-gift. Visa gift cards are really useful, but cash is definitely much better.

[keepsmiling]

It drives me crazy that gift cards can "expire"... in some states that is illegal UNLESS it's a bank card; don't even get me started on how the banks can make up whatever rules suit them and change them whenever the mood strikes. It should be like cash IMHO... they've had the use of your $$$ without having to give you anything yet...

Someone gave me a couple of cards a few years ago for a store that I would NEVER go to and if I did, I'd probably have to add cash to it just to get SOMETHING... I wound up giving it back to them, rude perhaps but it was just a stupid gift being for a single store in a town I would never get to, that closed early, that we would have to take a day off of work to get to...

Since we are on the topic, there are a bunch of sites that have sprung up for the purpose of selling/swapping gift cards. A quick search for "gift card swap site" will get you there. Also, I have sold a few on ebay.

[WhatMoney]

All gift cards issued after August 22, 2010 must follow the regulations below. I don't see how the card described by the OP could exist without violating this new law:

For immediate release

The Federal Reserve Board on Tuesday announced final rules to restrict the fees and expiration dates that may apply to gift cards. The rules protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated.

The final rules prohibit dormancy, inactivity, and service fees on gift cards unless:

(1) the consumer has not used the certificate or card for at least one year;

(2) no more than one such fee is charged per month; and

(3) the consumer is given clear and conspicuous disclosures about the fees.

Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded.

The Board's rules generally cover retail gift cards, which can be used to buy goods or services at a single merchant or affiliated group of merchants, and network-branded gift cards, which are redeemable at any merchant that accepts the card brand.

The final rules are issued under Regulation E to implement the gift card provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009.

The notice that will be published in the Federal Register is attached. The final rules are effective August 22, 2010.

http://www.federalreserve.gov/newsev.../20100323a.htm

[helpmeout]

My daughter received several VISA debit gift cards for Christmas. I was looking at the back of the packaging the card came in. This $25 gift card has a $3.95 purchase transaction fee, a $2.00 per month maintenance fee, and a $5.95 lost/stolen card fee. What kind of scam will they think of next?

That's illegal. Maybe not the lost/stolen fee, but everything else is. The company I work for sells gift cards and due to Federal Law, we cannot charge the consumer any fees. We pay it all. She should call them and let them know that she knows what her rights are, they will probably remove that feature from her gift card.

[tobee43]

money orders....(we used to do american express money orders)....postal money orders...even walmart has them.....

i have heard some of the "money" card are good and don't charge all these little rip off charges, but i don't know the name of any of them.

the ONLY gift cards we purchased this season were at the grocery stores for FOOD.

[platter]

@tobee43, that makes sense - buying a gift card for food!! Can't go wrong on that since everyone has to eat!

[Fallonedward]

Des, I'm in Finance and "Cash is King"

My son wanted a Visa gift card for Christmas so he could order a few things on-line and I told him I would give him cash and we could use my debit card much cheaper

This is why "cash is king". It would have made a lot more sense for those giving the gift to have simply sent a check for the amount of the gift. With the exception of some gift cards, I always send checks.

Des.