Home Gift Card Tips Problems Faced Due To Visa Gift Cards

Problems Faced Due To Visa Gift Cards

Visa gift cards can be easy to send and you might find it as an excellent alternative gifting idea, since they are prepaid and are widely accepted everywhere. It can be redeemed at restaurants, gas stations, grocery stores and other stores. Be it for birthdays, holidays or any other occasion, Visa gift cards have gained wide popularity. However, before giving someone a Visa gift card, you might need to rethink! Why? Here are the top three problems faced due to the Visa gift cards:

  • Purchase fees & monthly fees

It is very important to understand that while purchasing a gift card, there is an additional cost included, termed as purchase fee. This means that if you buy a gift card of $ 250, you are entitled to pay an extra amount of $ 5.95 for purchasing that card. The purchase fee depends on the value of the gift card and goes on increasing with increased value of the card. The table below represents the standard purchase fees:

S. No. Gift card value Purchase fees
1 $ 10 to $ 74.99 $ 2.95
2 $ 75 to $ 149.99 $ 3.95
3 $ 150 to $ 249.99 $ 4.95
4 $ 250 to $ 349.99 $ 5.95
5 $ 350 to $ 500.99 $ 6.95

  

Though these are the standard rates, different brands of gift cards have their own purchase value. If both the costs are added, you are paying a lot more than you would have paid if you just bought a gift or gifted someone cash. Well, if you are okay with the purchase fees, don’t forget that there is another cost included! There is a monthly fee included which will be deducted from the balance amount of the card, if the card is unused for 12 months. 

  • Difficult to use

Though purchasing your favorite items can be done easily with gift cards without the hassle of using cash, it becomes a major issue when it comes to using the entire balance of the card. It is a common problem to almost every user and around $ 5 or $ 10 remain unused. 

Visa gift cards are normally accepted everywhere, but there are certain cases when the gift card might get declined. 

Another serious difficulty of gift cards is using them at a restaurant. The credit-card machines are programmed to handle a later addition of tip up to 20%. This system works well for credit cards, but the real problem arises in the case of a gift card. For example, if you have a $ 50 gift card and the meal costs you around $ 45, then your gift card will get declined as the preprogrammed machine will try to deduct an amount of $ 60 (including the tip). Since this amount exceeds your card value, it will get declined every time, unless you plan on buying a meal worth $ 20.

  • Gift card scams

Gif cards can be tampered in retail stores by fraudsters even before they are bought. The activation codes and card numbers can also be taken from the databases by hackers. Replacing a stolen or lost gift card is also a headache, as it requires a fee.

The cons and limitations of a Visa gift card must be understood before using or giving someone a gift card. Though it seems as a cashless easy option, when you look into the troubles one might come across due to gift cards, gifting cash or buying a gift is always a better option!  

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