Tips for buying gift cards safely if you need a last-minute option

We’re getting down to the wire on gift-giving. Better Business Bureau (BBB) has tips for buying gift cards safely if you need a last-minute option.

Gift cards are a great option for someone who lives far away or would prefer to pick out their own gift. They operate much like cash – which is convenient for your gift recipient, but can also open them up to risks like tampering or theft.

Certain gift cards may also have specific policies, expiration dates or fees that impact where, when and how your recipient is able to use the card.

BBB receives hundreds of complaints about gift card purchases each year. They could be the perfect gift for someone in your life – just make sure you’re purchasing and using them safely.

What do I need to know about buying a gift card at the store?

• Inspect the packaging. Some scammers use handheld scanners to capture a gift card’s information off the rack at the store, leaving unsuspecting buyers with a drained card. Look carefully for tears or wrinkles in the packaging, an exposed PIN or barcode, scratched-off security codes, or other signs of tampering.

• Check the barcode. Run your finger over the back of the card to check whether a sticker has been applied on top of the barcode. Scammers may place stickers over the real barcode that connect to an account they control. When you scan a phony barcode at the checkout and pay, you’ll add cash to the scam account rather than your newly purchased gift card.

• Treat it like cash. Report the card to the issuer immediately if it is lost or stolen. Most issuers have toll-free telephone numbers for reporting lost or stolen cards — find them on the card or online.

What should I know about buying gift cards online?

• Purchase directly from a retailer’s real website. Purchasing a gift card online may help you avoid the possibility of buying a compromised card at a store. Purchase directly from the retailer’s website, and watch out for websites or social media ads promoting gift cards for popular retailers at steep discounts. These websites might use these offers to steal payment card numbers or other personal information. Look for the BBB Seal or search for the business on BBB.org to see if it is a trustworthy retailer.

• Avoid buying cards secondhand. It’s virtually impossible to tell whether the cards have any value remaining, have been tampered with, or have expired.

• Be wary of websites that offer to check your gift card’s balance. According to BBB Scam Tracker reports, some websites that claim to check your gift card balance are really a way to steal money from your card. These sites ask for your card’s ID number and PIN or security code. Then, scammers use the information to drain the money from your card.

What do I need to know about gift card fees and policies?

• Check the policies for each specific retailer. Not all retailers have the same gift card policies. For example, some may only be able to be used in-store and not online, or they may have fees for certain circumstances. Double-check the terms and conditions before you purchase.

• Check expiration dates. The Credit CARD Act of 2009 provides protections to consumers who receive gift cards, such as requiring that card balances remain valid for five years after issuance. However, some cards may still have fees or different stated expiration dates.

• Consider the financial condition of the retailer. Remember that gift cards are essentially cash. If you think the store may be on shaky footing, you may want to pass on buying a card.