Are Gift Cards Safe to Buy? What You Need to Know

Gift cards are a popular and convenient method for both gifting and making payments, offering flexibility for recipients to choose their own desired items. While these cards provide a straightforward transaction, many consumers harbor questions about their safety and reliability. Understanding potential pitfalls and protective measures can empower individuals to approach gift card transactions with greater confidence. This guidance clarifies common concerns and outlines strategies for secure gift card engagement.

Understanding Gift Card Risks

Gift cards can be compromised in various ways. One prevalent method is physical tampering, where scammers manipulate cards from store displays. This can include peeling off protective stickers to expose and record the card number and PIN, or placing new barcodes over legitimate ones to divert funds upon activation. These actions leave the card looking undisturbed, but the information is stolen, leading to a zero balance for the buyer.

Online fraud also poses significant risks, often through phishing or fake websites. Scammers may send deceptive emails or texts, attempting to trick individuals into revealing gift card details or buying cards for fraudulent purposes. Bogus balance-checking websites also capture card numbers and PINs when consumers verify their card’s value. Gift cards are also exploited in scams where individuals are pressured to pay for supposed debts, fines, or prizes. Imposters often claim to be from government agencies, tech support, or family members in distress.

Smart Buying Practices

Minimizing risks begins with diligent buying practices. Purchase gift cards directly from reputable retailers or their official brand websites. Avoid secondary markets, online auction sites, or unofficial sellers to prevent acquiring fake or stolen cards.

When buying physical gift cards, carefully inspect the card and its packaging. Look for signs of tampering, such as scratched-off PIN areas, altered barcodes, or resealed packaging. Choosing cards from the back of a display rack or those kept behind a counter can reduce the likelihood of purchasing a compromised card. For online purchases, verify the website is secure (indicated by “HTTPS” in the URL) and ensure the authenticity of the seller’s domain before entering payment information.

Securing and Using Your Gift Card

Treat gift cards like cash, as they typically lack the same fraud protection as credit cards. Many gift card issuers offer online registration, which provides additional security and facilitates replacement if the card is lost or stolen. Using the card promptly after purchase reduces the window for potential fraud or loss.

Keep the original purchase receipt; it serves as proof of purchase and is often required for inquiries or issues. When checking a gift card’s balance, use only the official website or toll-free number provided by the card issuer, not third-party sites that may be phishing for card details. Federal law, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, mandates that gift cards cannot expire in less than five years from activation. This law also limits dormancy or inactivity fees, generally prohibiting them unless there has been no activity for at least 12 months, and requiring clear disclosure.

Addressing Common Problems

If a gift card is lost, stolen, or has an unexpected zero balance, prompt action is necessary. Contact the gift card issuer or retailer’s customer service immediately. Providing details like the card number, activation date, and purchase receipt can aid in resolution.

While not all lost or stolen cards can be replaced, many issuers allow replacement, especially if the card was registered or proof of purchase is available. Be prepared to provide all requested identifying information; a small fee might be associated with replacement. Additionally, report gift card scams or issues to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov to help authorities track and combat fraudulent activities.