Visa gift cards: Complete crap.

[Rider]

Originally Posted by Homeslice

The issue is that you are paying a fee to get them. Whereas if you buy a different type of gift card, like say Shell or Starbucks or PF Chang or whatever, there's no charge.

Yeah but a one time fee $3.50? Big deal. And I don't know of any that are charging a monthly fee. I'm not saying there isn't any, I just don't know of anyone who is paying a monthly fee.

[Homeslice]

Originally Posted by goof2

I don't really understand the complaint about the flat fee for an Amex gift card. I wouldn't think Amex incurs any cost difference between issuing a $25 gift card vs. a $3,000 gift card so why would they charge the purchaser different amounts? I suppose whoever wrote that would be happier if Amex was charging $3.95 for a $25 card and $39.95 for a $3,000 card for no reason other than they can?

If you look at it from the standpoint of Amex's profitability on a card (assuming it works the same way as credit cards) they stand to make much more money from fees charged to retailers on the $3,000 card vs. the $25 card. I suspect the author would be apoplectic about Amex charging the $39.95 for issuing the $25 card and getting rid of purchasing fees altogether for the $3,000 card.

The issue is, I can walk into a grocery store and buy a Starbucks or Kohls or Shell gift card, and there is no fee at all. Plus they don't need to know anyone's name. Why does Visa/MC/Amex have to know the person's name?

Visa/MC is the biggest ripoff of all time, when you think about how much money they rake in for doing nothing but sitting on their ass and maybe making a few TV ads now and then.

Is there actually a company called Visa or MC? If so, it must make tens of billions because of all the merchant fees.

[shmike]

Originally Posted by Rider

Yeah but a one time fee $3.50? Big deal. And I don't know of any that are charging a monthly fee. I'm not saying there isn't any, I just don't know of anyone who is paying a monthly fee.

That's the point, most people don't know.

Many of these gif cards start charging a fee after so many months.

You don't "pay it", it reduces your available balance.

Example:
You buy your son a $50 gift card for $53.50. He loses it. Finds it a year and a half later and goes to buy a $50 game.

Declined.

He has $20 left of your $53.50 because he was paying $2.50 per month after 6 months without knowing it.

[goof2]

Originally Posted by Homeslice

The issue is, I can walk into a grocery store and buy a Starbucks or Kohls or Shell gift card, and there is no fee at all. Plus they don't need to know anyone's name. Why does Visa/MC/Amex have to know the person's name?

Visa/MC is the biggest ripoff of all time, when you think about how much money they rake in for doing nothing but sitting on their ass and maybe making a few TV ads now and then.

Is there actually a company called Visa or MC? If so, it must make tens of billions because of all the merchant fees.

Yes, you can buy a Starbucks, Kohls, or Shell gift card but then the recipient is stuck using that card at Starbucks, Kohls, or Shell. I have seen a few gift cards that work within a network of chains but the networks are typically very small. For example Outback cards work at Bonefish, Carrabba's, etc. because they are all owned by the same company. There is much more flexibility built in to the Visa/MC/Amex gift cards. Instead of doing that I give cash, but some people don't like doing that, which leads to the existence of these cards.

Yes, there are actual companies called Visa (NYSE: V) and Mastercard (NYSE: MA). They created and run the electronic networks that allows you the cardholder to make an electronic transactions in or in close to real time anywhere their network is set up. Visa's net income was a little over $2.3 billion last year.

[EpyonXero]

The issue is that for a $25 card the company is charging you an upfront fee of over 15% on top of the fees they charge retailers during purchases. And what is the advantage over cash? Its just as easy to lose and in most situations its not any more secure than carrying cash.

I can understand kids liking them but I dont know who else would use them.

[Rangerscott]

Is this suppose to be new news? This has been going on for years. Same is when they take money off when you don't use it.

Point is. Don't get one if you're not going to use it.

[marko138]

Seriously, why take over 12 months to use it?

[101lifts2]

Originally Posted by Homeslice

The issue is that you are paying a fee to get them. Whereas if you buy a different type of gift card, like say Shell or Starbucks or PF Chang or whatever, there's no charge.

Dude those are cards that you HAVE TO USE at Shell or Starbucks whereas the Visa Gift card can be used anywhere. They have to make money somehow...and the 3% fee is not really all that much on a 50 buck gift card.

[Homeslice]

Originally Posted by 101lifts2

Dude those are cards that you HAVE TO USE at Shell or Starbucks whereas the Visa Gift card can be used anywhere. They have to make money somehow...and the 3% fee is not really all that much on a 50 buck gift card.

They are ALREADY making money off merchant charges when you use them. Why do they need more? Ghey IMO.

[101lifts2]

Originally Posted by Homeslice

They are ALREADY making money off merchant charges when you use them. Why do they need more? Ghey IMO.

They make a buck fifty off of a 50 dollar card....BFD.