Gift card purchases are likely to be very popular this holiday season. However, before you buy here are a few things that you might want to consider to avoid having problems later:
Some businesses offer a bonus or cashback when you make a significant purchase. Others like warehouse clubs may offer discounts. However, before you buy, check things out. Some of these incentives come with a catch, like limiting the time period for using a bonus card.
It is also a good idea to check out the terms and conditions for using the card. Some have a complicated activation process or require the recipient to set up an account. Others may charge dormant fees that could eventually wipe out the value of the card, and some may limit the amount that can be accessed per transaction.
When purchasing, look at the back of the card to be sure that protective stickers and in place and free from damage. Keep a copy of the receipt. This can come in handy if there are problems later.
If you are concerned that a business may close before the card can be used, you might want to stick with giving cash. If a business closes, you may not be able to get your money back.