Beware of Visa Gift Cards: What to Know First: Good Financial Sense (2023)

FAQs

How safe are Visa gift cards? ›

The Visa Gift card comes with protection and security features. This means that unlike cash, the Visa Gift card can be replaced if lost or stolen.

Because a Visa gift card functions like a credit card, it can be used anywhere that Visa cards are accepted, including online purchases—though it will likely need to be registered online or by phone prior to use.

Generally, Visa debit cards are for payments and most importantly; cash withdrawal. Visa Gift cards are basically for redeeming items or services, not for cash withdrawals.

It's safer to buy from places that keep gift cards behind the counter or, if they're sold on racks, in well-sealed packaging. Immediately contact the retailer that issued a gift card you used to pay a suspected scammer. If money remains on the card, you might be able to get it back.

Prepaid Visa Activation Fees

At grocery stores, it is typically a $4.95 fee on top of the amount on the gift cards. An example would be $25 + $4.95 activation fee.

Republic Bank offers fee-free Visa gift cards to their customers. These non-reloadable gift cards can be used anywhere Visa is accepted. They are available in amounts ranging from $25 to $250. To purchase a Republic Bank Visa Gift Card, visit a location near you.

Cardholder name, or a generic title (such as “Gift Card Recipient”), or left blank. Signature panel must be signed by the cardholder. “Electronic Use Only” must appear on the front or back of all unembossed cards.

Yes, gift cards are taxable. According to the IRS, gift cards for employees are considered cash-equivalent items. Like cash, include gift cards in an employee's taxable income—regardless of how little the gift card value is.

How does my Visa Gift Card work? To make a purchase, make sure you know the amount remaining on the card then select credit and sign for the purchase. The debit option requires a PIN to work. The card does not come with a preset PIN, so you will need to set one prior to making the purchase for the debit option to work.

Why does Visa gift card keep getting declined? ›

There are a number of possible reasons why a purchase could be declined: You don't have enough money left on your card. You haven't activated or registered your card. The address you gave to make an online or phone purchase is different from the address you have on file with your prepaid card provider.

All Visa gift cards have a fee, and this fee is dependent on the value of the gift card. Visa gift card of $10.00 to $74.99 have a $2.95 fee. Visa gift card of $75.00 to $149.99 have a $3.95 fee. Visa gift card of $150 to $249.99 have a $4.95 fee.

Prepaid Visa and Mastercard gift cards are pretty much the same when it comes to built-in benefits and overall terms of use. Both present widely accepted payment methods for various occasions, from grocery shopping to paying your bills. You can even use the gift cards to pay for gas, depending on the merchant.

There are only a few downsides to using prepaid cards, but they are significant. Prepaid cards come with fees. Cardholders may have a lot of fees, including activation fees, transaction fees, ATM withdrawal fees, reloading fees, monthly fees, or inactivity fees. Check the fine print on the card for fee types.

Vanilla Visa Gift Card

The card can be purchased in $20 denominations, ranging from $20 to $500. Once the card is activation, no additional fees apply and the funds never expire. Per the cardholder agreement, activation costs between $4.95 and $9.95 depending on the dollar value and number of cards activated.

The biggest difference between the two reflects their permanence: prepaid cards can be reloaded and used indefinitely, while gift cards can generally only be used until the dollar amount on them is exhausted.

Spreads Brand Awareness

One of the most cost-effective ways to spread brand awareness is by offering gift cards. As your customers love your products or services, they will want to share their experiences with their friends and family.

Tips When Buying Gift Cards

If you are buying a card from a retailer, check it before purchasing. Make sure that the codes on the back of the card haven't been scratched off to show the PIN number. Be sure to read the gift card's fine print. Know the terms and conditions.

If you believe you've been a victim of identity theft, call (866) ID-HOTLINE or visit the Call for Action website. You should also visit the Lost or Stolen card page—if the identity theft involves your Visa card.

Do banks sell Visa gift cards? ›

Purchase at a U.S. Bank branch

U.S. Bank branch bankers process the Visa Gift Card loaded with the dollar amount you specify, from $25 to $500 and you leave with your new Visa Gift Card in hand. Transactions are limited to the United States only. There is a $3.95 purchase fee.

Visa $50 Gift Card ($4.95 activation fee)

For more information, visit our Terms and Conditions.

Can Fees Vary Based On Where I Purchase My Visa Gift Card. While standard fees are listed above, you will pay more for store specific Visa gift cards. For example, a Target Visa $50 gift card has a $5 activation fee. While a $50 Walmart Visa gift card has a $3.88 activation fee.

General-use gift cards, such as those from Visa and Mastercard, tend to have one upfront fee, often called a purchase or activation fee, which the gift giver would pay. The fee might be $2.95 to $5.95, depending on the amount added to the card, based on a sampling of gift card websites.

Bluebird® American Express® Prepaid Debit Account

The Bluebird® American Express® Prepaid Debit Account will accept an ITIN in lieu of a Social Security number. This is a great prepaid card that won't drain your account with fees, unlike many prepaid card accounts on the market today.

Visa gift cards often have a one-time fee of $2.95 to $6.95 at the time of purchase, based on the gift card's value, whereas most Visa debit cards and credit cards cost nothing to get.

The first 4 digits of a Visa card will vary depending on the credit card issuer. A Visa card's first digit will always be a 4, but the next five digits on a Visa card represent the credit card company, bank, or credit union that issued the card.

Although prepaid cards are not directly connected to a bank account, they work similar to debit cards. This means that a prepaid card will have to be activated with your social security number, will have your name printed on the card, and can be used in conjunction with a secure PIN code.

Do Visa gift cards require SSN? ›

While your Social Security Number is not required, it enables Visa to better protect your dispute rights if your card is ever lost or stolen.

Can Gift Cards Be Traced? Gift cards tied into credit card networks, such as Visa prepaid cards, can be traced. For gift cards tied to individual merchants, it depends on what systems and processes the merchant has in place.

The IRS finds out if you gave a gift when you file a form 709 as is required if you gift over the annual exclusion. If you fail to file this form, the IRS can find out via an audit.

Most of the time, the answer is yes. Prepaid Visa cards usually let you transfer your balance to a bank account or third-party services like PayPal or Venmo. All you need is your card information and/or your bank details to get started.

Yes, the Visa Prepaid card can be used to pay bills, withdraw cash, or make any purchases where a debit card can be used.

Most people don't realize that a gift card purchase with a credit card can count as a cash advance. Before buying a gift card with a credit card, it's a good idea to double check what a credit card issuer's policies are surrounding gift card purchases.

If this amount exceeds your available balance on the card, the authorization for purchase may be declined. Let the merchant know to only deduct a specific amount from the card and make payment for the balance by another method of payment. You may not use the card to add a tip after a transaction has been processed.

Activate—If you purchase your Visa gift card from a retail outlet, the card should be activated and ready for immediate use after purchase. However, if you purchased it online, you'll need to activate it once you receive it. This is typically done online or by calling the toll-free number listed on the card.

Why do prepaid cards expire? Prepaid cards expire so that card issuers can keep their clients up to date. Prepaid card expiration also allows customers to have a more secure experience.

Features. A one-time $3.95 purchase fee applies at the time of purchase.

What is the activation fee for a $25 Visa gift card? ›

Visa $25 Gift Card ($3.95 activation fee)

A Mastercard gift card is like a regular debit or credit card. You can use it to make purchases anywhere in the US where Mastercard debit cards are accepted. Unlike a standard card, you can give a Mastercard gift card to anyone.

Prepaid cards are a safe and convenient cash alternative. You can use a prepaid card to buy items online and in stores. Prepaid cards are not linked to a checking account. Instead, you must load money onto the card before you can use it—similar to a gift card.

If records show a value still remains on the card, American Express, Mastercard, or Visa can cancel the lost or stolen card and refund the available value to you in the form of another Visa, Mastercard, or American Express gift card. There's no fee for replacing a lost or stolen card.

Prepaid Visa Activation Fees

It occurs when you first purchase the card. At grocery stores, it is typically a $4.95 fee on top of the amount on the gift cards. An example would be $25 + $4.95 activation fee. It's a one-time fee and once it is paid you never need to do it again.

Fraudsters can virtually print money for themselves by hacking into a company gift card database to steal card numbers and activation codes. This can be done via brute force hacking methods, malware, or using phishing or social engineering attacks against company employees.

Store your gift cards securely.

Keep physical cards in a wallet, purse, or other secure place. If the card has a PIN covered by scratch-off material, leave the scratch-off material in place until the PIN is required.

Fraudsters can also use prepaid cards to carry out scams, such as card cracking or card testing. In these schemes, fraudsters use stolen or fake card information to load money onto the prepaid cards, then quickly withdraw the funds before the bank detects the fraud.

Prepaid cards cannot be used for credit card payments or car payments. You cannot split payments online so you can only spend the amount that is on your card. You should keep your prepaid cards until they expire in case you receive any refunds to your cards. Virtual cards are meant to be used online or over the phone.

Why is my Visa gift card being declined even though I have money? ›

Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.

A) Yes, they do keep track of purchases. Almost all prepaid gift cards require some form of registration where they collect different data about you: name, address, zip code, phone number, etc.