Bankrate Releases Holiday Gift Card Survey

Bankrate, Inc. announced today that it has released its Second Annual Holiday Gift Card Survey. The Research completed by Bankrate.com of 20 leading retailers and the four top credit card issuers, examines the fees, expiration dates and dormancy policies associated with gift card purchases. In addition, Bankrate offers basic information on how and where to purchase the surveyed company’s cards, delivery and shipping policies and where each card can be redeemed.

“It’s important for consumers to know that when they give gift cards, rules and fees apply. The $100 gift card that was sent to your sister may we worth a lot less if it’s not used in time,” said Daniel Ray, editor in chief of Bankrate.com. “Bankrate.com’s survey highlights the fine print so that both givers and receivers truly get what they want this holiday season,” Mr. Ray added.

Key findings of the survey are:

• The offerings from the retail stores were generally more consumer friendly than those of the credit card issuers. Only four retail stores (Costco, Albertson’s, Macy’s and Bloomingdale’s) place expiration dates on their gift cards. Those expiration dates range from two to five years. All four cards backed by the major credit card issuers — American Express, Visa, MasterCard and Discover — have expiration dates, and that can arrive as quickly as six months.
• Five out of the 34 gift cards listed in our survey assess fees if you don’t activate within 12 to 24 months. These issuers expect you to use the card or you will lose a percentage of your money every month.
• You may have to order your gift card earlier this year — many of the retailers have lengthened the time between when you order a card and when it’s delivered.
• They are becoming available in more monetary units. Some companies also give you specific denomination amounts if you order by phone as opposed to the Internet.

It may seem incidental, but the fees can add up. For example, one popular gift card must be activated with in 24 months of purchase. After 24 months, there is a fee of $2 for each additional month the card is not used. At another, if you want to buy a $25 gift card, it costs almost $39 after the purchase and shipping fee are added in. If the recipient then cashes in the card, there’s another $10 fee. You paid nearly $39 and your friend ended up with $15.

To view the complete findings of Bankrate.com’s 2005 Holiday Gift Card Survey, go to http://www.bankrate.com/giftcardsurvey.