This is the second post in a series discussing the impact of the CARD Act of 2009 on gift cards.
When it comes time to redeem a bank issued gift card (Visa, American Express, etc.), they are among the most flexible: redeemable just about anywhere their credit card counterpart is accepted. As a result, they are extremely popular with consumers. However, their flexibility comes at a price: purchase fees, service fees, replacement fees, transaction fees, valid thru dates and expiration dates.
While several states offer great consumer protection for gift cards, they typically have not covered bank issued gift cards. Thankfully, the new federal gift card rules specifically include bank issued gift cards. Today we're going to look at five popular visa gift cards before and after the CARD Act of 2009.
Note: Green indicates a positive change while red indicates negative change.
Our first visa gift card, offered by InComm, is a popular option for many consumers. Before the CARD Act, the Vanilla Visa Gift Card was given a Gift Card Score™ of 53 and here is why:
- $2.50 monthly fee after 6 months from purchase date
- $5.95 replacement fee
- $5.95 purchase fee (for a $50 gift card)
- 24 month expiration form purchase
After the Card Act, the Vanilla Visa Gift Card scores a 72. It's a significant increase and easy to see why:
- no monthly fee
- no replacement fee
- $5.95 purchase fee for a $50 gift card
- no expiration (technically, the card has a valid thru date, but will be replaced free of change)
Another popular seller of visa gift cards. Before the CARD Act, the GiftCards.com Visa Gift Card's had a Gift Card Score of 47:
- no monthly fee
- no replacement fee
- $3.95 purchase fee for a $50 gift card
- $0.44 shipping fee
- 12 month expiration form purchase
After the Card Act, (technically after 06/08/10) the GiftCards.com Visa Gift Card scores slightly lower with a Gift Card Score of 46:
- $4.95 monthly fee after 12 months of inactivity (federal minimum)
- $4.95 replacement fee
- $3.95 purchase fee for a $50 gift card
- $0.44 shipping fee
- Minimum 7 year expiration form purchase
Simon Malls Visa Gift Card issued by U.S. Bank
Before the CARD Act, the Simon Malls Visa eGift Card's received a Gift Card Score of 42:
- $2.95 monthly fee beginning 12 months from purchase
- $5.00 lost/stolen replacement fee
- $15.00 expired card replacement fee
- $5.95 purchase fee for a $50 gift card
- Minimum 20 month expiration form purchase
After the CARD Act, the Simon Malls Visa Gift Card scores slightly higher, a Gift Card Score of 44:
- $2.95 monthly fee after 12 months of inactivity
- $15.00 lost /stolen replacment fee
- $5.95 purchase fee for a $50 gift card
- Minimum 5 year expiration form purchase (federal minimum)
GiftcardMall.com Visa Gift Card
Before the CARD Act, the Giftcardmall.com Visa Gift Card was the top scoring bank issued gift card on ScripSmart with a Gift Card Score of 77:
- no monthly fee
- no replacement fee
- $3.95 purchase fee for a $50 gift card
- $1.99 Shipping fee
- no expiration (technically, the card has a valid thru date, but will be replaced free of change)
- 2% foreign transaction fee (for purchases made in a currency other than US Dollars)
After the CARD ACT, the Giftcardmall.com Visa Gift Card scores slightly lower at 75. While the purchase fee increased slightly, the card also is not longer redeemable outside of the United States:
- no monthly fee
- no replacement fee
- $5.95 purchase fee for a $50 gift card
- $1.99 Shipping fee
- no expiration (technically, the card has a valid thru date, but will be replaced free of change)
- no foreign transaction fee (Not redeemable outside of the US)
Before the CARD Act, the All Access Visa Gift Card received a Gift Card Score of just 22. It was among of the lowest scoring gift cards we've ever reviewed because there were several fees and a short expiration:
- $2.95 monthly fee after 6 months of purchase date
- $5.00 lost/stolen replacement fee
- $9.95 check reimbursement fee
- $4.95 purchase fee for a $50 gift card (VERIFY)
- Minimum 20 month expiration form purchase
After the CARD Act:
While researching this CARD Act compliant gift card terms for the All Access Visa Gift Card, I reached out to NetSpend customer support and was informed:
"Unfortunately, we would like to inform you that because of the gift card rules in the CARD account NetSpend has made the decision to discontinue selling gift card products prior to the August 22, 2010 implementation date."
Overall positive, but mixed results:
One gift card was significantly improved and is now among the best Visa gift cards available. Other providers shifted fees and expiration dates and maintained roughly the same Gift Card Score. Finally, one product was taken off the market.
Overall, the changes seem positive and while consumers lost an option, it happened to be one of the least consumer friendly alternatives to gift card giving.
Gift card buying tip for consumers:
Not all gift cards are created equally, even if they carry the same Visa logo. Before making your next purchase, be sure to check the Gift Card Score and make sure you are buying a gift card which offers the most favorable terms for your recipient. ScripSmart is here to help and offers a collection of the best bank issued gift cards to help you be a smart shopper.
