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Gift Cards: Ratings of Sources
Total of 24 Sources
Gift Cards 2007: Best and Worst Retail Cards
by Staff of the Montgomery County (Md.) Office of Consumer Protection
Our Assessment

For their fifth annual gift card report, the Montgomery County Office of Consumer Protection in Rockville, Md., 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 listed as 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. 17, 2008
2008 Gift Card Study
by Ellen Cannon
Our Assessment

BankRate.com's fourth annual survey of gift cards looks at the four credit-card issuers along with top nationwide retailers and reports on their gift card terms and fees. BankRate.com finds that all of the bank-issued cards have fees, expiration dates or both, while most store-issued cards do not. The pros and cons of each are discussed and a comparison chart of the 24 cards that were examined is included.

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

Editors of ConsumerReports.org 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
Updated Sept. 15, 2009
State Gift Card Consumer Protection Laws
by Consumers Union Financial Services Team
Our Assessment

Consumers Union (the organization that publishes ConsumerReports.org) 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 protections 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 Macy's, 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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The Attorney General's Gift Card Report: Perils of Gift Cards, Knowing Your Rights and Improving Our Laws
by Andrew M. Cuomo
Our Assessment

While this report from the New York attorney general's office doesn't rank or rate specific gift cards, it does discuss in detail the different types of gift cards and the hidden fees and restrictions that often take consumers by surprise. In addition, useful information is included in footnotes regarding specific retailers and their gift card policies, such as Clinique and others that require remaining balances on purchases greater than the gift card's value to be charged to a credit card. While New York state laws are primarily discussed, information regarding the laws of other states is included in some areas.

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New Retailer Gift Card Group to Protect Consumer Interest
by Carman Wenkoff
Our Assessment

This press release describes the creation of the Retail Gift Card Association, a nonprofit organization formed by several top gift-card issuing retailers, including Applebee's, Best Buy, Home Depot, Marriott International and Subway. The organization requires members to abide by a strict set of guidelines aimed at keeping the consumers' best interests in mind, which includes agreeing not to charge dormancy fees or other administrative fees on closed-loop gift cards.

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8. Idaho Statesman
Oct. 28, 2009
When Giving Gift Cards, Understand the Pitfalls
by Candice Choi
Our Assessment

Associated Press reporter Candice Choi discusses the fees, expiration dates and other inconvenient limitations imposed by gift cards. She provides a summary of the new safeguards that will take effect in 2010, including expiration dates that must be at least five years in advance and a ban on inactivity fees unless it has been at least one year since the card has been used. The author notes that American Express recently did away with its dormancy fee and these cards don't have expiration dates. In addition, lost or stolen American Express gift cards are replaced for free. One downside is that American Express isn't as widely accepted as MasterCard or Discover.

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9. The Wall Street Journal
Oct. 13, 2009
Retailers Pin Hopes on Gift Cards to Win over Reluctant Shoppers
by Elizabeth Holmes and Ann Zimmerman
Our Assessment

This article reviews several retailers offering innovative gift card programs for the 2009 holiday season. Neiman Marcus will be giving away free $50 gift cards to lure customers, Target will be offering $10 gift cards to customers making a purchase of $100 or more on Black Friday, and Best Buy is offering an online gift card program that allows several friends and family members to contribute to the overall dollar value of the card.

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10. The Wall Street Journal
Oct. 6, 2009
OBig Box' Retailers Spice Up Gift Cards for Holiday Season
by Veronica Dagher
Our Assessment This article in The Wall Street Journal discusses plans by retailers to make gift cards more enticing to consumers this holiday season in order to avoid the expected slump in holiday sales. Among them is Best Buy, which is offering a program that allows consumers to create an online gift card that friends and family can contribute to in order to pay for larger-ticket items.
Amex Gift Card Loses Some Fees, Retains Others
by Anthony Giorgianni
Our Assessment

This brief article on the ConsumerReports.org blog addresses the recent decision by American Express to drop dormancy fees from its gift cards -- both on new purchases and existing cards. Anthony Giorgianni praises the decision, but notes that fees still apply to purchasing the card in the first place, and it's no longer possible to convert the card's value to cash. While ConsumerReports.org is admittedly wary of gift cards in general, this article suggests the American Express gift card might be the best option currently available.

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Gift Card Value When Issuers Go Bankrupt
by Cristin Frederick
Our Assessment

This report by the Federal Reserve Bank of Boston addresses both retailer and consumer options concerning gift cards when a retailer files for bankruptcy. Retailers must petition the court for permission to honor certain programs, including gift cards, under bankruptcy proceedings. These options are described as well as consumer options when they suddenly find themselves holding a valueless gift card.

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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.
14. IncentiveMag.com
May 5, 2008
An Out-of-Card Experience for Amazon
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 emailed, but can also be printed on a variety of products. Once the code is input on the site, the money is stored in the recipient's Amazon account for safekeeping and future use.
15. Best's Review
May 1, 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.
16. MainStreet.com
Oct. 16, 2009
Gift Cards Get a Makeover
by Brian O'Connell
Our Assessment This brief article at MainStreet.com outlines the new rules for gift cards that will take effect in August 2010. O'Connell notes that American Express has eliminated monthly fees on its gift cards, although the upfront fee for the card still applies.
17. Federal Trade Commission
Nov. 2008
Buying, Giving, and Using Gift Cards
by Editors of the Federal Trade Commission
Our Assessment

The Federal Trade Commission offers tips for purchasing, giving and using gift cards. They suggest that buyers pay attention to the terms of the card, which vary greatly from one card to the next. They also warn consumers to consider fees and expiration dates, and advise that retailers that file for bankruptcy may not honor gift cards. A contact list is also provided for filing complaints with the appropriate authorities. Specific gift cards are not mentioned.

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18. Crain's Chicago Business
May 12, 2008
Now Achieving Grand-Prize Status: The Gas Card
by Kevin Davis
Our Assessment Reporter Kevin Davis discusses the growing popularity of gas gift cards. 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.
19. IncentiveMag.com
June 9, 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.
20. The New York Times
Nov. 21, 2008
The Gift Card Comes Wrapped in Growing Risk
by Alina Tugend
Our Assessment

Alina Tugend discusses the risk associated with purchasing gift cards in light of so many retailers going bankrupt or otherwise closing shop. Sharper Image, Linens 'n Things and Circuit City are among those discussed, with options noted for redeeming gift cards for these retailers. Also highlighted are new businesses, such as LeverageCard.com and GiftCardRescue.com, which aim to provide consumers with a bit of protection when it comes to gift cards. Both sites offer options for refunds on remaining balances or swapping unused cards for other retailers in the event of a business closing.

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21. About.com
Not Dated
Best Online Last Minute and Gift Shopping Options: E-Gift Cards and Certificates
by Barbara Farfan
Our Assessment Barbara Farfan provides a list of retailers offering e-gift cards and certificates that can be delivered via email or by mobile phone. The retailers aren't ranked or rated in any type of order, and terms and conditions of the gift cards and certificates aren't listed. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)
22. 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: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)
23. Des Moines Business Record
June 7, 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.
24. CNNMoney.com
Aug. 2008
The Worst Gift Ever
by Joe Light
Our Assessment Reporter 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.

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