The holiday shopping binge is over, and for the Better Business Bureau, that means the season of complaints about gift card scams has begun.
Maybe you got or gave a gift card purchased from an online marketplace that lets people buy cards from others, often for a discount on the promised stored value. Then you find out the card has a zero balance.
Steve Bernas, president and CEO of BBB of Chicago and Northern Illinois, said complaints about gift card resellers typically surge after the holidays. He said legitimate marketplaces can be used by scammers, often based overseas, who come and go, leaving victims with little recourse.
One victim offered simple advice. “If you value your money, I would only deal directly with the retailer for gift cards,” said Alexander W., who asked that his last name not be used. He complained to the BBB after spending $177.99 for a worthless $200 gift card for American Eagle Outfitters, using Chicago-based Raise.com.
Alexander said Raise refunded his money because he showed the card had been drained in an out-of-state transaction, thus bolstering his case for fraud. Raise did not answer a request for comment. On its website, the company promises a one-year money-back guarantee.
Bernas said people should check online reviews for any reseller and consult BBB.org for any ratings applied to the company. A BBB affiliate in Texas this month said it slapped a failing “F” rating on gift card reseller Cardpool.com after the company amassed more than 2,100 consumer complaints in the last three years.
About 100 of those complaints were from Chicago-area customers, Bernas said. The complaints include an alleged failure to issue timely payments for submitted gift cards and that cards purchased through the site were received with no balances.
Cardpool did not reply to a request for comment. The BBB affiliate said the company has not answered its communications.
Bernas also cautioned consumers about websites that promise to check the stored value of cards. They ask for the card number and security code, exactly the information someone needs to drain the account.
Also, gift card holders are out of luck if the store that issued it goes out of business.
Bernas said about 6% of gift cards are never redeemed. Anyone who wants to resell one should consider striking a deal with a family member or friend if they are concerned about being scammed online, he said.
“We ask consumers to utilize the cards as soon as possible,” Bernas said. “If you put it in a drawer, it’s likely you will forget about it.”
