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joyfulguy

Woe to the drunken [NO! SHrunken!!] dollar!

joyfulguy
9 years ago

While I was waiting in the checkout line at a discount store a few weeks ago, I picked up one (or two or three?) of the multitude of cash cards on the display rack ...

... and was surprised (astonished?) to see that there was an activation fee of two or three dollars! Don't remember the amount of the card.

Today while waiting in the checkout line at the same store, picked up a couple of cards to check for activation fee.

The (four-letter word one that starts with "V") had one that I'd pay $50.00 to buy (I assume) but the company'd charge an activation free of $4.95 ... so the recipient would have to make do with $45.05!

RIP-OFF!!

I told the mainly young recipients of a few gifts at Christmas that to shop for them I had no idea of something that they'd find useful and interesting and appreciate receiving, and that if I bought them a gift card, the company got a benefit in terms of a guaranteed sale, and there was no reduction of benefit to me, as the cost was the same ...

... but that there was a cost to them, for if I'd given them money, they could use it in 2,500 stores in town, but a gift card could be used in only one .. or perhaps half a dozen.

But I guess that's not exactly correct, as some of the major card issuers' cards would be honoured in the stores where they accept credit cards, I expect.

The one for $35.00 had a fee of $3.95!!

About as bad as the coin machine counters in the stores - that charge 11% ... but the ones found in only a few banks have a charge of 0.

ole joyfuelled ... but less joyful, this afternoon

Comments (8)

  • maire_cate
    9 years ago

    I don't buy those cash cards but I always thought that the buyer paid the activation fee, not the recipient.

    If I need to purchase a cash card I stop at my local TD Bank (I'm sure you've heard of them! LOL) - there's no fee and you can register your card online in case you lose it.

  • joyfulguy
    Original Author
    9 years ago

    Hi maire cate,

    I think that you're right - the cards are useless untiI "activated" at the check-out, so I expect that I'd have to pay $54.95 to get the card with face value of $50.00: I'll have to check that out. Intended to do it at the checkout, but was dealing with some other things and forgot: you know how these seniors' brains operate.

    A lady at the library says that when she buys cards, she pays just face amount, and she's pretty sure that the recipient gets that full amount, also.

    I have some accounts with TD Bank ... and have considered buying some of their shares.

    Have shares in a different bank, bought 47 years ago for $4.17 ... and last month transferred some to a charity for just under $100.00 each (should have done it a couple of weeks earlier, before the market drop, when they were $105.00) so avoid paying income tax of half of the $90.00+ capital gain.

    It seems to me that when it took upwards of 50 years to accumulate that gain ... that when one sells them (haven't sold the rest yet) should be able to spread the tax liability when sold over 2-3 (or even 5) years?

    ole joyful

  • Elmer J Fudd
    9 years ago

    A gift card issued by a bank is a financial service, I'm not sure why anyone would think or expect them to be free. It's a service you pay for, like most any other.

    WIth a gift card good for a given store, the issuer's compensation is the future sale of goods (or better yet is when the buyer loses the card or forgets to redeem it). When you purchase a card at a supermarket, that market is out of the picture when you walk out the door and mostly so too is the bank. The future charge fees to retailers won't pay the bank for the distribution of the cards.

    If you want to give something with broad usefulness, you can e-send an Amazon gift certificate. No charges of any kind and a broad product offering.

    joyful, good for you for your bank stock investment. Sell it and spend the money on something worthwhile. You've told that story enough times that I think anyone who has read any of your posts could repeat the details.

  • marie_ndcal
    9 years ago

    I have always had to pay extra for either the Visa or MasterCard gift cards. Even my bank charges for their cards. But, for me it is cheaper as the kids/grandkids can buy what they want when they want to and they are happy. They love shopping after Christmas sales.

  • Imhappy&Iknowit IOWA zone 4b
    9 years ago

    I prefer to hand over the green paper. Good everywhere. No "fees" involved.

  • susanjf_gw
    9 years ago

    lov that's exactly what I wanted to do, but dh wouldn't 'let me'...he hates gc to begin with, but felt the green stuff is even less personal? so took advantage of store we were at and yes had to pay fees...of course they were for 2 of our grands (the other 7 had actual presents they wanted)

  • jemdandy
    9 years ago

    Forget the gift card. If you are going to give money, use cash. This frees the recipient to apply the gift at any place and it eliminates the fee. Personally, I do not like gift cards that are tied to a particular store. One exception: There is a movie theater chain here that will cash the card for a movie ticket and give change for the used amount; There is no fee.

  • Elmer J Fudd
    9 years ago

    My practice is that currency is ok for a kid (maybe up to about 12 years of age or so) but for older recipients cash seems a bit crass. Better to try to at least find out what the person wants, and then get a gift card for where that or similar items are sold.

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