Many people are already redeeming holiday gift cards, but some are discovering their cards won't work. After receiving a $50 Visa gift card from her daughter, Julia Hodges found out the hard way that the card was empty.
"I went to use it the next day, and I was told there were insufficient funds," Hodges said. "I was embarrassed; I was upset."
She said the card appeared legitimate, with no evidence of tampering.
RELATED STORY | The one mistake that turns your Christmas gift card into worthless plastic
"It may not be a lot to some people, but it’s a lot to me," Hodges said.
Possible case of ‘gift card draining’
Kyle James, a reporter with ConsumerAffairs, told us one possible explanation is "gift card draining," where criminals steal the bar code and PIN associated with a card.
"They'll actually peel off the little code, take a picture of it and then sometimes they'll put their own little sticker back on," James said.
Watch below for more tips on how to avoid gift card scams:
Once a card is purchased, a criminal can drain the gift card before you get to use it.
To steer clear of tampered cards, James recommends shoppers never pull the first gift card off the rack.
"I'll pull one from the back, and I will quickly inspect it, make sure there's no tampering, that the paper hasn't been moved," James said.
RELATED STORY | These are the most wanted gifts across all 50 states this holiday season
If you suspect tampering, James advises consumers to call the number on the back of a gift card to see if a company can start a fraud investigation.
He also recommends that you tell an employee about the tampered card, so no one else buys it.
Keeping gift cards safe
For that pile of gift cards you have at home, James recommends using gift cards sooner rather than later. This also helps in the event that a retailer or business shuts down before you’ve had the chance to use it.
He suggests registering the card, if the brand allows, and adding a gift card balance to your personal accounts. For example, add a Starbucks gift card to the Starbucks app, or an Amazon gift card to your Prime account.
"Add it to your wallet, your Apple Pay if you can," James said.
The grocery store where Hodges' card was sold told us that with a photo and receipt, they may be able to help.
Despite financial hardship and this latest hiccup, Hodges said she’s trying to make the most of the holiday season.
"The insurance is due; my tags are due on my car. I could have really used that money," she said.
Don't wait to use those holiday gift cards, so you don’t waste your money.
________________________
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy
____________________________
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook: John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
