Beware of gift cards that charge $7 fees this holiday season
Nati Harnik, Associated Press
There may be some gift cards to watch out for this holiday season.
All-purpose cards issued by banks tend to charge more fees than their store-branded counterparts, according to a study released today by Bankrate.com.
Bankrate surveyed 63 gift cards in early October of this year. Only five of the 55 store-branded gift cards in the survey charged a fee to purchase.
The other eight cards surveyed were general-purpose cards issued by financial institutions like Wells Fargo, Discover and KeyBank, all of which charged fees ranging from $2.95 to $6.95.
“The key takeaway for consumers is that they’re going to get the most value from store-branded gift cards,” said Janna Herron, credit card analyst at Bankrate.com, in a statement. “The benefit of general-purpose cards offered by banks and credit card companies is that they can be used anywhere, but because of the fees, you would be better off giving cash.”
Gift cards offered by banks also charge dormancy or maintenance fees more often than others, with 75 percent charging fees up to $3 per month if the card is unused. Only two percent of store-branded cards charge these fees.
- Amish country bristles at ‘Mafia’...
- Dave Ramsey says: Government unlikely to take...
- Paul Mero steps down as head of Sutherland...
- Fairchild Semiconductor closing Utah plant
- Park City Mountain Resort and Talisker extend...
- Utah board approves winery in polygamous town...
- New line powers growth, dependability and...
- Salt Lake City emerging as go-to destination...
- Amish country bristles at... 8
- Mimicking the airlines, hotels get... 8
- Burger King in talks to buy Tim Hortons 7
- UTOPIA mayors looking for alternative... 5
- Paul Mero steps down as head of... 5
- California push to avert higher gas... 3
- Park City Mountain Resort and Talisker... 3
- Dave Ramsey says: Government unlikely... 3