Frequently Asked
Questions

A gift card is a prepaid stored-value money card, usually issued by a retailer or bank, to be used as an alternative to cash for purchases within a particular store or related businesses. Gift cards typically work like this:

• They come loaded with a specific monetary value
• They can be used for purchases at designated retailers or groups of retailers
• The purchase amount is deducted from the card's balance until it reaches zero
• They may be "closed loop" (usable only at specific retailers) or "open loop" (usable wherever the card network is accepted)

When you make a purchase with a gift card, the retailer's system verifies the card's balance and deducts the purchase amount, updating the remaining balance for future purchases.

Gift cards come in various types, each with unique features and limitations:

• Retail Gift Cards: Issued by specific stores or restaurant chains, usable only at those businesses
• Bank-Issued Gift Cards: Carry payment network logos (Visa, Mastercard, etc.) and can be used wherever those networks are accepted
• E-Gift Cards: Digital gift cards delivered via email, containing a code for online purchases
• Reloadable Gift Cards: Can have additional funds added after initial purchase
• Multi-Store Gift Cards: Usable at multiple retailers within a shopping center or business group
• Experience Gift Cards: For services or experiences rather than retail purchases
• Incentive or Reward Cards: Issued as part of promotional programs or employee incentives

Each type of gift card may have different terms, fees, and restrictions, so it's important to understand the specifics of any card you purchase or receive.

Gift card expiration and fees vary depending on the type of card and the issuer's policies:

• Store-Specific Gift Cards: In the U.S., many states have laws prohibiting expiration dates or inactivity fees on store gift cards. Many major retailers have eliminated expiration dates entirely.
• Bank-Issued Gift Cards: Under federal law (Card Act of 2009), these cards cannot expire for at least five years from issuance date. Inactivity fees can only be charged if the card has been inactive for at least 12 months.
• Potential Fees: Some cards may charge fees for:
  • Purchase/activation fees
  • Inactivity fees (if unused for a specific period)
  • Balance inquiry fees
  • Replacement fees for lost/stolen cards

Always check the terms and conditions for any gift card you purchase or receive to understand any expiration dates or potential fees. This information is typically printed on the card, included in packaging materials, or available on the issuer's website.

Physical and digital gift cards serve the same basic purpose but differ in delivery and usage:

Physical Gift Cards:

• Tangible plastic or paper cards that can be handed directly to the recipient
• Often come with a greeting card or gift packaging
• Typically used for in-store purchases by presenting the physical card
• May include a magnetic stripe, barcode, or chip for processing
• Can be lost or damaged, though many retailers offer replacement options

Digital Gift Cards (E-Gift Cards):

• Delivered electronically via email, text message, or within an app
• Contain a unique code or digital wallet entry for redemption
• Typically delivered instantly or on a scheduled date
• Primarily designed for online purchases but many can be printed for in-store use
• Cannot be physically lost but require secure storage of the code or email
• Often can be integrated with mobile wallet apps

Both types offer the same core functionality, with the choice between them depending on the gift-giving occasion, recipient preference, and how/where the recipient plans to use the gift card.

To verify a gift card's legitimacy, check these security features and take these precautions:

Physical Gift Cards:

• Examine the packaging for signs of tampering (torn packaging, exposed PIN codes, scratched-off security codes)
• Check for security features like holograms, intricate designs, or special printing techniques
• Verify that security codes or PINs are properly concealed behind secure scratch-off material
• Look for quality printing and professional design elements consistent with the brand's identity
• Purchase gift cards only from authorized retailers or the brand's official website
• Keep the purchase receipt as proof of activation and value

Digital Gift Cards:

• Verify the sender's email address is from the official company domain
• Check that links direct to the official company website
• Look for proper branding, logos, and professional design
• Be wary of unusual requests or conditions attached to the gift card
• Purchase e-gift cards only from official websites or authorized partners

If you're uncertain about a gift card's legitimacy, contact the retailer or issuer directly through their official customer service channels to verify before attempting to use it or providing any personal information.

If your gift card is lost or stolen, take these steps immediately:

1. Contact the Retailer or Issuer: Call the customer service number (usually found on the back of the original packaging or on the retailer's website) as soon as possible
2. Provide Proof of Purchase: Have your receipt, the gift card number (if you have it), and any transaction details ready
3. Request a Replacement or Freeze: Depending on the retailer's policy, they may:
   • Issue a replacement card if you can verify ownership
   • Freeze the remaining balance to prevent unauthorized use
   • Transfer the balance to a new card
4. Follow Specific Procedures: Complete any required forms or verification processes

Important Notes:

• Replacement policies vary widely between retailers - some may replace cards easily while others may not offer any replacement options
• Many retailers require the original purchase receipt
• Some retailers charge replacement fees
• For registered gift cards or those connected to loyalty accounts, the process is typically easier
• Digital gift cards can often be retrieved by accessing your email or account where they were delivered

As a preventative measure, take a photo of the front and back of gift cards, record card numbers and PINs, and keep receipts in a secure location. For digital gift cards, save the confirmation emails and take screenshots of the codes.

Common gift card scams and prevention strategies include:

Common Gift Card Scams:

• Payment Scams: Scammers impersonating government agencies, utilities, or tech support claiming you owe money and demanding gift card payment
• Tampered Cards: Criminals record card numbers and PINs in stores, then wait for activation before draining the balance
• Fake Gift Card Resale Sites: Websites offering discounted gift cards that are either fake or already depleted
• Phishing Emails: Fake emails claiming to offer gift cards but actually stealing personal information
• Verification Scams: Callers claiming to verify gift cards while actually collecting card information to steal balances

Prevention Tips:

• Never provide gift card details to anyone who contacts you unexpectedly
• Remember that legitimate businesses and government agencies never demand payment via gift cards
• Purchase gift cards from official sources or authorized retailers
• Examine gift card packaging for signs of tampering before purchasing
• Choose cards kept behind counters or in secure packaging rather than openly displayed
• Check gift card balances immediately after purchase and regularly thereafter
• Use gift cards promptly rather than storing them for long periods
• Be wary of unusually discounted gift cards from unfamiliar sources
• Verify the legitimacy of resale platforms through independent research

If you believe you've been scammed, report it immediately to the retailer, the Federal Trade Commission (FTC), your state attorney general's office, and local law enforcement.

There are several ways to check your gift card balance:

For Retailer-Specific Gift Cards:

• Website: Visit the retailer's official website and look for a "Gift Cards" or "Check Balance" section
• In-Store: Visit any store location and ask a cashier or customer service representative to check the balance
• Phone: Call the customer service number printed on the back of the gift card
• Mobile App: Many retailers offer apps that allow you to check balances after registering your card
• Receipt: Your remaining balance is often printed on purchase receipts when you use the card

For Network-Branded Gift Cards (Visa, Mastercard, etc.):

• Visit the website printed on the back of the card
• Call the toll-free number on the back of the card
• Register the card online if available to track balances

Information You'll Typically Need:

• The gift card number (typically 16-19 digits)
• PIN or security code (if applicable)
• For some cards, additional verification information may be required

Always use official channels provided by the retailer or card issuer to check balances and avoid third-party services that request your card information, as these could potentially be scams designed to steal your balance.

Here are several ways to handle gift cards with small remaining balances:

Usage Options:

• Combine with Other Payment Methods: Most retailers allow you to use a gift card for part of your purchase and pay the remainder with another payment method
• Small Purchases: Use the card for small items that match the remaining balance (coffee, snacks, etc.)
• Apply to Bills: Some retailers allow you to apply gift card balances to recurring subscriptions or service bills
• Reload the Card: If the card is reloadable, consider adding more funds to make it more useful
• Combine Multiple Cards: Some retailers allow you to transfer balances from multiple gift cards onto a single card

Other Considerations:

• Cash Back Options: Some states have laws requiring merchants to provide cash back when a gift card balance falls below a certain amount (typically $5-10)
• Donate the Balance: Some charities accept gift cards with small balances as donations
• Gift Card Exchange: Certain services allow you to sell or exchange gift cards, though the value offered for small balances may be minimal
• Re-gift as a Small Token: Include the card as a small additional gift along with another present

Remember to check the specific retailer's policies regarding small balances, as they vary widely. Some retailers may have specific programs or policies for handling cards with minimal remaining value.

Yes, most gift cards can be used for online purchases, though the exact process varies by card type:

Retailer-Specific Gift Cards:

• Can typically be used on the retailer's official website
• Usually require entering the card number and PIN/security code during checkout
• May require creating an account on the retailer's website
• Some retailers allow you to add gift cards to your online account for easier checkout

Bank-Issued/Network Gift Cards (Visa, Mastercard, etc.):

• Can be used at most online retailers that accept that payment network
• Used similarly to a credit card during checkout
• May require registering your billing address for the card before use

E-Gift Cards:

• Specifically designed for online use with a code that's entered at checkout
• May also be loadable to digital wallets or retailer apps

Tips for Online Use:

• Verify your gift card balance before attempting to make a purchase
• For purchases exceeding the card balance, have a second payment method ready
• Take screenshots of confirmation pages and save receipts after using gift cards online
• Be cautious about saving gift card information on websites with questionable security

If you encounter issues using a gift card online, contact the retailer's customer service department for assistance, as some cards may have specific requirements or limitations for online use.

When giving a gift card, consider these factors to make it a thoughtful and useful gift:

Recipient Preferences:

• Choose a retailer the recipient frequently shops at or has expressed interest in
• Consider the recipient's needs and lifestyle (e.g., a home improvement store for new homeowners)
• Think about accessibility - ensure there are store locations near the recipient or that they shop online
• Consider whether they'd prefer a specific store or the flexibility of a bank-issued card

Practical Considerations:

• Check for expiration dates or fees that might reduce the card's value
• Include the receipt or activation confirmation as proof of purchase and value
• Consider the appropriate amount - enough to purchase something meaningful at that retailer
• Verify the card is properly activated before giving it

Presentation Ideas:

• Add a personal note suggesting how the gift card might be used
• Consider presentation - a gift card holder, greeting card, or small gift box
• For digital gift cards, schedule delivery for a specific date/time
• Pair the gift card with a small related item (e.g., a coffee mug with a coffee shop gift card)

Avoid These Pitfalls:

• Giving cards to stores not accessible to the recipient
• Choosing retailers the recipient doesn't use or enjoy
• Purchasing from unreliable or unauthorized sellers
• Forgetting to check that the card is properly activated

Remember that the thoughtfulness behind your choice of retailer can make a gift card feel much more personal and show that you've considered the recipient's interests and needs.

For detailed information about specific gift cards, consult these resources:

Official Sources:

• The retailer or issuer's official website - typically has a dedicated gift card section with terms and FAQs
• Physical documentation included with the gift card packaging
• Customer service representatives at the issuing company

GiftKosar Resources:

• Our Resource Center includes detailed guides on many popular gift cards
• Check our Retailer Guides section for specific information about major retail gift cards
• Review our Security Guidelines for information on protecting and verifying specific gift card types

Consumer Protection Resources:

• Federal Trade Commission (FTC) - Information on gift card regulations and scam prevention
• Consumer Financial Protection Bureau (CFPB) - Details on federal protections for gift cards
• State consumer protection offices - Information on state-specific gift card laws

If you can't find the information you need through these resources, you can always contact us with specific questions, and we'll do our best to help you find accurate information about particular gift cards.