Do Banks Sell Gift Cards? Here’s What You Need to Know

Gift cards are a popular choice for presents, offering recipients flexibility. Many wonder if banks offer these options. While retailers provide store-specific gift cards, banks often offer a different type with broader utility.

Types of Gift Cards from Banks

Banks primarily offer “open-loop” gift cards, backed by major payment networks like Visa or Mastercard. These cards function like a debit card and can be used almost anywhere that accepts the associated payment network, including online and in-store merchants. This differs significantly from “closed-loop” gift cards, issued by specific retailers and redeemable only at that store or affiliated businesses. Some financial institutions may also carry third-party retail gift cards, but their own branded open-loop cards are a common offering.

Purchasing Bank Gift Cards

Banks allow customers to purchase these cards directly at a branch location. You select the desired amount to load, often ranging from $25 up to $500 or $750, depending on the bank’s policy.

Payment can be made using various methods available at the bank. Some financial institutions also offer online purchase options.

An activation fee is commonly applied to bank-issued gift cards, paid by the purchaser. These fees are generally $3 to $7 and can vary based on the card’s loaded value.

After purchase, ensure any necessary activation steps are completed. For certain online transactions, registering the gift card online with your name and billing address may be required.

Key Considerations for Bank Gift Cards

Federal law, specifically the Credit CARD Act, mandates that most gift cards cannot expire for at least five years from the date of issuance or last fund addition. This law also limits dormancy or inactivity fees, which cannot be charged unless there has been no activity for at least one year. If such fees are imposed, only one fee per month is permitted, and these fees must be clearly disclosed before purchase.

Registering your gift card, if the issuer provides this option, offers protection if the card is lost or stolen. While credit cards offer broad recourse for unauthorized use, gift cards typically do not, making registration a prudent step.

Checking the card’s balance regularly, often available online or by phone, helps manage expenditures and confirm transactions. Some bank gift cards may have limitations, such as not allowing cash access at ATMs or use for recurring payments. Review the cardholder agreement for specific terms.