Thinking About Money

Gift cards are an increasingly popular form of gift, and many of them represent a great way to give people an excuse to spend money at their favorite store.

But whatever you do – don’t give prepaid Visa, Mastercard or American Express cards as gifts! Unless it’s for someone you hate.

Why?

Because all of these cards have hidden charges – after a few months they start charging two or three dollars a month on each card until its value is completely gone. This fact is buried, naturally, in the fine print or at the end of a long list of card “features”. If the recipient forgets to use the card right away, when they finally get around to it they’ll discover that your gift actually ended up in the hands of the banks, leaving them with nothing but a hollow feeling and useless plastic.

This entry was posted on Wednesday, November 28th, 2007 at 6:18 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.