Gift credit cards...Biggest scam ever?

You don't need a credit rating to have a card. You only need it to get credit. Amazon accepts debit cards. The only difference is you put money in the bank before you buy, rather than after. For many years I had only a debit card, not a credit card. The problem came in trying to rent a car. Never had any trouble locally, but in Hawai'i the car rental company refused me because I had a debit card AND no credit history. Now I have a credit card I use as though it was a debit card, by paying off my balances in full before any payment is due.

It's true that plastic has benefits: it costs money to handle cash. And it costs money to print bills and mint coins.

But gift cards are a scam that it would seem no person with half a brain should fall for.

 

The thing about gift cards is that it's meant to be spent on material things, whether you want it or not. For the most parts, gifts are things that you usually receive that the giver pays at a price that the recipient probably would not pay for. Maybe the giver doesn't want to give straight cash for the fear that the recipient might just bank it in a CD(which is what I do) in which case, it's not really a gift. It's not an unnecessary splurge. It's just a transfer of wealth which defeats the (at least from a Christmas point of view) whole point of giving.

 

Have to admit, I like getting restaurant gift cards for my Mom. She is 95 and trying to downsize what she owns, so giving her a food type gift (to a place I know she really likes going) seems to be best way to handle Christmas and birthdays when we are very far apart. I have also gotten grocery store gift cards for my grown children when I know money is tight for them. These cards do NOT expire and don't have any fees associated with them. (I also found Costco gift cards good for areas that have Costco gas stations!) One has to make sure the recipient has access to the restaurant, grocery store or retail store (and will use it) before getting one however! Also, my daughter being a teacher, we have gotten her gift cards for Office Max and Costco so she can get supplies for her classroom. Hawaii isn't providing much in the way of supplies these days...

I don't think I want to be giving out VISA or AMERICAN EXPRESS gift cards just because I know how the fees and expirations can bite on these.

 

Beware that this no-expiration policy may be specific to Washington State, where it is mandated by law.