5 mistakes to avoid when buying gift cards
Some people, like immediate family and friends, can be challenging to shop for because one wants to ensure one has the perfect gift. But a few people are impossible to shop for since they have extremely discerning tastes. While it may be tempting to get a gift card in such cases, even this solution has its issues. Gift cards may seem straightforward, but people often make mistakes when shopping for one. Confuse the different kinds of gift cards Broadly, gift cards are two types: open-loop and closed-loop. Open-loop gift cards are not tied to a specific retailer or brand. They are mostly backed by a credit card issuer or a big bank, and they can be used anywhere. However, they come with an activation fee. Typically, this fee ranges from $3 to $7, depending on the issuing partner and other attributes. On the contrary, closed-loop cards work only on specific websites or stores. But the good thing is they do not have any fees associated with them. So, which card should you opt for? Closed-loop gift cards are recommended over open-loop gift cards. One of the top gift card mistakes to avoid is going with the ones that are associated with a payment service brand.
