Bank gift cards are still scams!

[old&slow]

I guess I prolly came to the table late on this one.
While I assumed that these cards do not expire they do take back the money( theft imo) on a monthly process fee.

I recently went to use a card that had been given me a few months back. A small gift of $25 from a family member.
It a Visa MyTreat. Went to use it last nite and it wouldn't work.
Logged into the mybalance website to find that they been taking a $2 fee per month. The card is down to $15.
So the family member basically flushed away $10 for nothing.

It really angers me that these multi-billion dollar banks have to squeeze the regular folks in this way. It just burns me to the core. Why do they have to be so damned greedy! I hope the whole system collapses around them! And they throw themselves off rooftops!

[ExtraSlow]

I thought that was illegal in Canada now?

[FraserB]

Some do and some don't, some carry and expiry at which the remaining balance is lost and some have long lives but charge maintenance fees. They are considered to be a prepaid Visa or Mastercard.

Mytreat starts charging the fees 6 months after the activation, so it is possible it was activate a bit before you got it.

[ZenOps]

http://www.cbc.ca/consumer/story/2008/09/10/gift-cards.html

Gift cards are supposed to be full amount - If bought and used in Alberta. It seems to be up to province to decide.

Not too sure about Visa/Mastercard. I believe they aren't considered gift cards as they are technically charging for "access anywhere", just like how regular Visa/Mastercard can and do have monthly fees.

[SilverGS]

This is the reason I stopped buying mall gift cards. They carry a maintenance fee after a while and charge you a fee when you buy it. I think last time I bought a $50 GC for someone from Chinook and it cost me $52.50 and on top of that there were all these instructions on maintenance fees if you don't use the card in a certain amount of time.

Never bought a prepaid visa or mc though.

[sr20s14zenki]

They cant keep making them if people stop buying them. :dunno:

Until the world is devoid of suckers (highly improbable) there will always be scams like this. Buyer beware.

[FraserB]

Originally posted by SilverGS
This is the reason I stopped buying mall gift cards. They carry a maintenance fee after a while and charge you a fee when you buy it. I think last time I bought a $50 GC for someone from Chinook and it cost me $52.50 and on top of that there were all these instructions on maintenance fees if you don't use the card in a certain amount of time.

Never bought a prepaid visa or mc though.

Those gift cards are the one covered under the law. A retailer is allowed to charge the one time fee at purchase but the money does not diminish with time if not used and it does not expire.

[BigMass]

I want to meet the genius who came up with the gift card marketing scheme. “Jones, I got this great new idea. We’re going to convince people to trade in their currency, which is accepted anywhere, for our mickey mouse money which can only buy goods in our store at a one to one ratio. “WTF how are we going to pull this off?”… Simple. We convince idiot consumerists that giving cash is a demeaning and emotionally devoid gift while giving our decorative plastic card is in some way more thoughtful and caring. This will lock consumers into buying our worthless products instead of using gift money for something beneficial or practical like playing off debt or buying food or gas. “Brilliant”

[TeHashu]

Originally posted by BigMass
I want to meet the genius who came up with the gift card marketing scheme. “Jones, I got this great new idea. We’re going to convince people to trade in their currency, which is accepted anywhere, for our mickey mouse money which can only buy goods in our store at a one to one ratio. “WTF how are we going to pull this off?”… Simple. We convince idiot consumerists that giving cash is a demeaning and emotionally devoid gift while giving our decorative plastic card is in some way more thoughtful and caring. This will lock consumers into buying our worthless products instead of using gift money for something beneficial or practical like playing off debt or buying food or gas. “Brilliant”

^

sooner or later they'll put interest on interest and people will continue to accept it.

[Tik-Tok]

Originally posted by ExtraSlow
I thought that was illegal in Canada now?

Only Alberta, Manitoba, and Ontario. However there's so many loop holes it's ridiculous.

Here's a couple of snips from the Alberta Fair Trade act.


Alberta’s gift card regulation does not apply if the card is based on a direct agreement between the consumer and the financial institution that issued the card. Depending on the terms and conditions of the card, consumers enter an agreement with the seller either when they purchase the card or use it.

So if you buy it, knowing there's a maintenance fee, it's legal.

American Express has it's own loophole on their cards by calling them "points" instead. So $100 will get you 100 point card, that is worth $1 per point. :rofl: Oh, and isn't usable at all American Express locations :rofl: :rofl:

[J-hop]

doesn't this only usually occur after the card has been dormant for 12 months??

I agree its a scam but c'mon, if you aren't going to use it in a 12 month period (or even a few month period for that matter) than you probably didn't care that much about it in the first place

[calgary403]

I have always found the cards to be very beneficial. I don't believe in credit cards as I refuse to pay high interest rates for things that I can not afford.

If I buy something I will save up and buy it outright. But for certain things (booking hotels, and using e-bay for example) having a credit card makes things alot simpler so I will buy a prepaid and pay the extra $5 dollar fee.

But charging you monthly on them is pretty ridiculous imho. Now you know for next time at least.

[Smartiepants]

I think they are also allowed to have a reasonable decay over time after a long inactive period.

Just so that eventually they can get rid of little cards that have only a couple of dollars on them and will never be used.

[ZenOps]

Its not all evil.

Grandma wanted to give you an untraceable Visa or Mastercard so that you could master your possibilities on the internet without fear of it showing up on your credit card bill.

You know what I'm talkin bout :rofl:

[5t3v3]

I got a Market mall gift card for xmas and it says it would have $2.50 fee / month 16 months after activation. I thought it's reasonable in this case.

[creeper]

Oh man, the amount of money retailers must rake in over lost or un-used gift cards ...... :bigpimp: :poosie: :D :clap: :clap: :clap:

I've had so many little $10 or $20 ones along the way that weren't activated properly or got forgotten in a wallet or envelope .....

Money for nothing! :love: :love: :love:

[codetrap]

Originally posted by creeper
Oh man, the amount of money retailers must rake in over lost or un-used gift cards ...... :bigpimp: :poosie: :D :clap: :clap: :clap:

I've had so many little $10 or $20 ones along the way that weren't activated properly or got forgotten in a wallet or envelope .....

Money for nothing! :love: :love: :love:

How's 8 Billion in 2006 sound?
http://www.consumerreports.org/cro/money/shopping/shopping-tips/gift-card-pitfalls-12-07/overview/gift-card-pitfalls-ov.htm

[403Gemini]

Originally posted by creeper
Oh man, the amount of money retailers must rake in over lost or un-used gift cards ...... :bigpimp: :poosie: :D :clap: :clap: :clap:

I've had so many little $10 or $20 ones along the way that weren't activated properly or got forgotten in a wallet or envelope .....

Money for nothing! :love: :love: :love:

Starbucks must make the most out of this. I've probably lost $500+ in starbucks gift cards over the years just because I think "meh its only $5" and don't use it or don't care if I do lose it. :banghead:

[Xtrema]

Originally posted by calgary403
I have always found the cards to be very beneficial. I don't believe in credit cards as I refuse to pay high interest rates for things that I can not afford.

If I buy something I will save up and buy it outright. But for certain things (booking hotels, and using e-bay for example) having a credit card makes things alot simpler so I will buy a prepaid and pay the extra $5 dollar fee.

But charging you monthly on them is pretty ridiculous imho. Now you know for next time at least.

I find a lot of machines (especially parking ones) refuses VISA/Mastercard gift cards.

Definitely big revenue stream for the banks. I start to see some Royalbank branches actively pitching gift card to businesses.

[ExtraSlow]

Originally posted by calgary403
I have always found the cards to be very beneficial. I don't believe in credit cards as I refuse to pay high interest rates for things that I can not afford. You do know that no interest is charged if you pay them off by the due date, right?

[SilverGS]

Originally posted by 403Gemini


Starbucks must make the most out of this. I've probably lost $500+ in starbucks gift cards over the years just because I think "meh its only $5" and don't use it or don't care if I do lose it. :banghead:

lol this is why I keep all my cards until they have a $0 balance. I used a best buy card with .65 on it last week. Didn't know how much was on it but just gave it a try. Lol'd when I saw the amount but whatever. Like you said keep adding those small amounts up and it becomes significant.

[ZenOps]

If you think its bad here, wait until you hit the US.

In New Jersey, the government is fighting to be able to seize unclaimed gift card assets after two years (so neither the consumer or the retailer gets the money)

http://www.northjersey.com/news/112791044_N_J__pressing_fight_to_seize_gift_card_funds.html

Its something I figure Rob Anders might try, take the money from both sides, lol.