Branded prepaid gift cards have always been one of the most popular holiday gifts and this year is shaping up to be no exception. New financial regulations rolled out in the Credit CARD Act of 2009, which took effect this year, have required changes to the cards like limiting fees, lengthening expiration dates and enhancing disclosures, which will be the real present for consumers this holiday season.
Branded gift cards carry the American Express, Discover, MasterCard or Visa logos and are accepted virtually anywhere a merchant accepts the brands. Cards can even be used online after a simple registration process.
The Network Branded Prepaid Card Association (NBPCA), a nonprofit trade association dedicated to promoting positive consumer experiences with prepaid cards, forecasts that branded gift cards will increase in popularity this year. Fifty-seven percent of people will ask for gift cards this year, according to the latest survey by the National Retail Federation (NRF). Visa Inc. found that 85 percent of U.S. consumers would appreciate receiving a branded gift card to buy something they really want or need. Sixty-five percent of respondents would prefer to receive a branded gift card rather than a “non-essential” holiday gift.
“In addition to the convenience, security and assurance the recipient will like it, the new extended expiration dates and lowered fees will increase consumers’ already strong confidence in buying these products and we are very pleased everyone will benefit from the new protections this holiday shopping season,” says Kirsten Trusko, president and executive director of the NBPCA. “Additionally, prepaid gift cards impart low ecological impact: reducing the need to drive all over town to find a gift, and then potentially return the gift, the packaging and wrapping needed and mailing costs to ship.”
The NBPCA has created the “2010 Quick Guide to Prepaid Gift Cards.” Visit www.nbpca.org for additional information and to view real consumer experiences:
* Rest easy, using the card is fee-free. No branded gift card recipient will be charged any fees until at least one year after the card is loaded with funds, so your recipient has plenty of time to spend all the funds without any fees.
* Give the gift of time and choice. The funds on branded gift cards don’t expire for at least five years, meaning your friends or family can use your gift for what they want, when they want.
* Enjoy the convenience of your prepaid gift card. Use your branded gift card anywhere the logo on the card is accepted – even online. Before you go shopping, make sure you know your available balance; most cards offer free online balance tracking, text or telephone alerts.
* Select gifts that are both versatile and personalized. Shop around this season and you’ll find lots of festive options, including gift cards that come with fun packaging and cards that can be personalized specifically for your recipient.
* Find everything you need to know right on the card. New branded gift cards will have the expiration date, fees, toll-free customer service number and website on the cards themselves, so finding information or getting help is easier than ever before.
* Give a gift that is safe. Unlike cash, the balance on a branded gift card can be refunded if the card is lost or stolen. The funds are protected by the zero liability policies of the card brand if you go through the simple registration process.
* Register your card to take advantage of all its protections. Be sure to register the card and keep the customer service number in a safe place. If your gift card is lost or stolen, you can receive a free replacement card or the balance.
