'Tis the gift card season - but beware!

HARLINGEN — Gift cards have become an ideal gift for the hard-to-please, or an easy solution for the uninspired or procrastinating shopper.

But some of the little plastic cards carry a hidden price.

Retailers and consumer groups advise gift card buyers and recipients to check the terms and conditions of those they buy or receive.

“Some gift cards can have expiration dates or dormant fees,” said Bryan Hubbard, spokesman for the federal Office of the Comptroller of the Currency. “If the card isn’t used within a certain date, they can reduce in value.”

Hubbard said people also should look at procedures to follow if a card is lost or stolen, procedures to follow if there are problems with the card and where the cards can be used.

Last year, consumers lost about $8 billion in unused retail gift cards, according to Hubbard.

This year, 75 percent of consumers are expected to buy two or more gift cards, spending about $26 billion, he said.

Consumers should always write down the card’s access number in case the actual card is misplaced, said Karen Reagan, vice president of government affairs for the Texas Retailers Association.

At stores like Best Buy and Target, gift cards cannot be redeemed for cash. Those retail companies offer information at their respective Web sites. Both stores’ cards can be redeemable online and aren’t tagged with an expiration date.

Target has created e-Gift Cards, which are sent via e-mail and can only be used for online shopping.

For national banks that issue gift cards, the OCC has issued guidelines that require banks to clearly disclose the fees and terms associated with each card, Hubbard said.

The Visa Gift card is a prepaid card that can be used at any location where Visa debit cards are accepted, including retail stores, online merchants and for mail and phone orders. Because it’s a prepaid card, spending is limited to the initial amount of value set at the time it’s purchased.

According to the Visa Web site, “the Visa Gift card is safer than cash since it can be replaced if lost or stolen,” according to the terms and conditions. Visa Gift cards cannot be redeemed for cash, according to a customer service representative.

Texas Attorney General spokesman Paco Felici said residents can contact his office if they are concerned about gift cards.

“If there is a problem, we will locate and contact the retailers to try to figure out the issue,” Felici said.

However, Felici said, the Attorney General’s Office advises against purchasing gift cards that are displayed at a store counter.

“Instead, people should ask the retailers for a gift card that is behind the counter,” Felici said. Display cards are vulnerable to tampering.