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Gift Cards: Ratings of Sources
Total of 24 Sources
Gift Cards 2007: Best and Worst Retail Cards
by Members of the Montgomery County Office of Consumer Protection
Our Assessment

For their fifth annual gift card report, the Montgomery County Office of Consumer Protection in Rockville, Maryland reviews the policies, packaging and inserts, and websites of 22 major retailers and restaurant chains as well as 20 bank-card issuers. Retail cards are either "recommended" or "not recommended." Each of the four "not recommended" retail cards, however, has changed their policies since this article was published; they no longer carry fees or expiration dates. Bank-issued gift cards are not rated, but a list of their fees, expiration dates, and disclosure issues is included.

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2. Bankrate.com
Nov. 12, 2007
2007 Gift Card Study
by Ellen Cannon
Our Assessment

Bankrate.com's third annual survey of gift cards looks at the four credit-card issuers along with top nationwide retailers and shopping mall operators and reports on their gift card terms and fees. Bankrate finds that all of the bank-issued cards have fees and expiration dates, while most store-issued cards do not. The pros and cons of each are discussed and a comparison chart of the 31 cards that were examined is included.

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3. ConsumerReports.org
Dec. 2007
Avoid Gift Card Pitfalls
by Editors of Consumer Reports
Our Assessment

Editors of Consumer Reports discuss the pitfalls and "gotchas" behind gift cards. Bank-issued gift cards are said to be more troublesome than most retail-issued cards. In either case, editors strongly urge consumers to read the fine print, which they warn can often be hard to find. Editors suggest avoiding bank-issued cards and insist that the balances should be used quickly to avoid fees. Terms of a few cards are mentioned in the article, but none of them are rated.

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4. Consumers Union
Aug. 4, 2008
State Gift Card Consumer Protection Laws
by Consumers Union Financial Services Team
Our Assessment

Consumers Union (the organization that publishes Consumer Reports) lists a summary of the key features of gift card consumer protection laws state by state. Laws vary greatly by state, with some severely limiting fees and others allowing any terms with proper disclosure. The states offering the strongest consumer protection include California, Connecticut, Florida, Minnesota, Montana and Rhode Island.

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5. CreditCards.com
Nov. 20, 2007
Gift Card Survey: Details of Biggest Issuers' Cards
by Editors of CreditCards.com
Our Assessment

The details of 41 major gift cards are listed in a chart by the name of the retailer. Retailers include Wal-Mart, Target, Best Buy and Circuit City, among others. The chart includes information about expiration dates, fees, protection against loss or theft, and available denominations. Notations are also made regarding whether or not PIN transactions can be made with the card, which cards can be refilled and which retailers offer electronic cards. The gift cards listed are not ranked or rated in any way.

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6. Kiplinger.com
Sept. 2008
Got a Gift Card? Use It or Lose It
by Joan Goldwasser
Our Assessment

Joan Goldwasser warns consumers of bankruptcy trends in the retail sector. Several companies have recently filed or are rumored to be filing for bankruptcy in the near future. When this occurs, gift cards for those particular stores generally become unredeemable. Gift cards from The Sharper Image and The Bombay Company are now worthless. She reports that "bankruptcy rumors are swirling around Circuit City."

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7. Business Week
Nov. 5, 2007
Gift Cards with a Personal Touch
by Cliff Edwards
Our Assessment Cliff Edwards spotlights Visa's new gift card options, namely the ability to personalize the cards with an uploaded picture, a stock image, or an engraved message. Edwards points out that the idea, aimed at regaining more of the market share, is far from original, and mentions other cards with similar options.
8. IncentiveMag.com
May 2008
An Out-of-Card Experience
by Anne Marie D. Lee
Our Assessment In this brief article, Anne Marie Lee explains how Amazon.com is going one step further than most with its gift cards. Instead of focusing on the card itself, Amazon is focusing on the code, which not only can be e-mailed, but can also be printed on a variety of products. Once the code is inputted on the site, the money is stored in the recipient's Amazon account for safekeeping and future use.
9. Best's Review
May 2008
Gift of Good Health
by Lori Chordas
Our Assessment This article spotlights Highmark Inc.'s new gift card, the HealthCare Visa Gift Card, designed to be used exclusively for health care purposes. The card is the first of its kind and currently has a patent pending. No other gift cards are reviewed.
10. IncentiveMag.com
Dec. 2007
Gift Card Grief?
by Alex Palmer
Our Assessment

In this article, representatives from bank- and retailer-issued gift card groups refute the findings of a 2007 Consumer Reports article on gift cards, saying that it simplifies issues and overlooks positive experiences. A consumer satisfaction survey is quoted, as are purchasing statistics that prove the popularity of these cards with purchasers and recipients. Specific gift cards, however, are not mentioned.

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11. The New York Times
Jan. 7, 2007
The Gift-Card Economy
by Stephen J. Dubner, Steven D. Levitt
Our Assessment Authors Stephen J. Dubner and Steven D. Levitt compare gift cards to gym memberships and prescription pills, in that they often go unused. They suggest that gift cards can solve gift-giving dilemmas but point out that merchants may have more to gain from the cards than do gift-givers or recipients. Specific cards are not discussed.
12. Federal Trade Commission
Dec. 2006
Buying, Giving, and Using Gift Cards
by FTC Staff
Our Assessment The Federal Trade Commission (FTC) offers tips for purchasing, giving and using gift cards. They suggest that buyers pay careful attention to the terms of the card, which vary greatly from one card to the next. A contact list is also provided for filing complaints with the appropriate authorities. Specific gift cards are not mentioned.
Consumer Fact Sheet -- Buying, Giving, and Using Gift Cards
by OTS Staff
Our Assessment

The Office of Thrift Supervision (OTS), which regulates banks and is part of the Department of the Treasury, recommends that consumers check the terms and conditions of gift cards before purchasing or using them. Various terms and fees are discussed. Special consideration should be taken to ensure that cards are secure and haven't been tampered with. If complaints can't be resolved with the card issuer, the author suggests contacting the OTS or the FTC. Specific gift cards are not mentioned.

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14. USA Today Magazine
Nov. 13, 2007
Growth in Gift Cards Slows as Recipients Get Selective
by Mindy Fetterman
Our Assessment USA Today editors point out a decline in the growth of gift card sales and suggest that kids may be getting bored of them. Experts interviewed claim that bank-issued gift cards may be better received by this group because they can use them anywhere. Editors warn that there may be fees and expiration dates involved with bank cards. No specific cards are discussed.
15. CBSNews.com
Nov. 24, 2005
How to Be a Gift Card Shark
by Ray Martin
Our Assessment

Ray Martin, personal finance adviser for "The Early Show," discusses popular gifts for the holiday season, namely gift cards. He explains some of the benefits of giving gift cards and points out terms to watch out for, such as expiration dates, maintenance fees and usage limitations. Martin notes that store-issued cards generally have better terms than bank-issued cards but suggests that improvement may be on the horizon.

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16. Crain's Chicago Business
May 12, 2008
Now Achieving Grand-Prize Status: The Gas Card
by Kevin Davis
Our Assessment According to the author of this article, gas gift cards are rising dramatically in popularity. Companies are using them more than ever to reward employees and attract customers. One gift card distributer claims a 50 percent increase in gas-card sales over last year.
17. IncentiveMag.com
June 2008
One Card, Many Options
by Maya Dollarhide
Our Assessment This article investigates emerging trends in the gift card market. Gift card retailers are becoming especially creative with incentive programs, making them more fun and enticing to employees.
18. Orange County Business Journal
Dec. 3, 2007
Former Lawyer, Partner Start Site to Track Gift Cards
by Sarah Tolkoff
Our Assessment

Sarah Tolkoff spotlights a new business startup, Leverage Inc., which serves the needs of gift card purchasers and recipients. The company runs a website designed to manage gift cards and loyalty programs for consumers. The site tracks balances on each card, allows users to swap cards with each other, and even spotlights promotions for stores that the user has cards or rewards for. The website also sells gift cards and pays interest on cards that can be electronically verified and updated. Specific gift cards are not discussed in this article.

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19. About.com
Not Dated
Best Places to Buy Gift Cards
by Judy Hedding
Our Assessment Five retail gift cards are recommended in this article because the stores issuing them "meet many needs." Each of the stores listed is located in the Phoenix area, but most of them are national retailers. The gift cards are not rated or compared, nor are terms and conditions discussed. (Note that About.com and ConsumerSearch share a parent company but are not editorially affiliated.)
20. Des Moines Business Record
June 9, 2008
Play Your Cards Wisely
by Drew McLellan
Our Assessment This brief article is directed at companies in an effort to show the benefits of gift cards as a marketing tool. Several advantages are listed, including the fact that 15 percent of cards are never redeemed, making them "pure profit" for the retailer.
21. Blogger News Network
Nov. 24, 2007
Gift Card Due Diligence 101
by Ed Dickson
Our Assessment This blog details some of the fraudulent schemes surrounding gift cards. The author claims that gift cards are a magnet for criminals and suggests some safety precautions consumers should take before purchasing them. Dickson recommends that consumers inspect cards for evidence of tampering before making a purchase.
22. Slate.com
Jan. 4, 2005
Why Gift Cards are Evil
by Daniel Gross
Our Assessment

In this older article, Daniel Gross explains that gift cards appeal to givers because they are easy and more appropriate than cash. He also points out that they spare recipients from unwanted gifts. However, Gross suggests that retailers benefit most from gift cards because they are like an interest-free loan and when recipients do use them, they often spend more than the face value of the card. No specific cards are mentioned or reviewed.

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23. Money
Aug. 2008
The Worst Gift Ever
by Joe Light
Our Assessment Author Joe Light suggests that consumers "run, don't walk" to spend outstanding gift cards, especially when the retailer's credit rating has been downgraded, as this may be a sign of impending bankruptcy. Companies whose ratings have fallen below investment grade include Blockbuster, Eddie Bauer, Express, Petco and Toys "R" Us.
24. Chain Store Age
Apr. 2008
Sharpening Gift-Card Etiquette
by Connie Robbins Gentry
Our Assessment This article discusses what happens with outstanding gift cards when a retailer files bankruptcy. Author Connie Robbins Gentry uses the recent chapter 11 filing of The Sharper Image as an example. She points out that retailers have a responsibility to serve both their customers and employees, even in difficult situations.

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