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Buying gift cards? Follow these 5 tips

Hidden costs and fees can be avoided if you know what to do.

ALBANY -- There can be pitfalls when buying gift cards this holiday season, but consumers can take steps to avoid them.

State Comptroller Thomas DiNapoli urged New Yorkers to use caution when buying and spending gift cards this holiday season.

“As New Yorkers begin their holiday shopping, gift cards are often a very popular purchase,” DiNapoli in a statement.

“Last year, my office received nearly $15 million from unused gift cards. Taking a minute to read the terms when purchasing or receiving gift cards can help you avoid fees,” he said.

Gift cards have been the most requested gift 12 years in a row, according to the National Retail Federation.

Here's five tips to follow, according to DiNapoli's office:

Always read the fine print

Fees can accompany a gift card in a number of ways.

Activations fees, non-activity fees, replacement fees for lost of stolen gift cards; and fees for calling to find out the current balance on a gift card are among those that can end up being deducted.
Reading the fine print on the gift card itself and knowing the stores' specific policies can help shoppers to avoid these types of fees.

Ask about fees

If your buying a gift card, ask the cashier or store manager what their policy about gift card fees is.
When you receive a gift card, find out as soon as possible if there are any fees associated with the card.

The sooner you know how much your gift card is really worth, the better you will be able to spend it without losing too much of its value on costs and fees.

Use the gift card within one year

Thanks to the Federal Credit Card Act, you can not be charged an inactivity fee on your gift unless it hasn’t been used in over 12 months.

After that point, many retailers can charge fees.

If you're holding onto an old gift card that only had a small balance remaining, an inactive fee could clear away whatever is left, making the card worthless.

The sooner you use a gift card, the less likely you also are to not lose it.

Know your legal rights

In 2016, New York passed a law restricting some of the costs and fees associated with gift cards and gift certificates.

The law made it so gift cards purchased in New York could not be charged an inactivity fee until after the card has gone inactive for more than two years.

The law also made it so gift cards without a given expiration date could not expire until at least five years after the card was purchased.

New York laws also mandate that any expiration date, costs or service fees for a gift card must be disclosed to the purchaser of the card.

However, depending on where the card was purchased, these laws might not apply to your gift card.

New York and 20 other states have laws that provide similar regulations.

Don’t lose more money

After five years of inactivity, the remaining balance on a gift card purchased in New York is turned over to the state as abandoned property.

In the 2016-17 fiscal year, $14.8 million in unused gift card money became abandoned property.
Between gift cards, uncased checks, bank accounts and more New York state currently has more than $15 billion dollars in unclaimed funds.

While it can be difficult to get unclaimed gift card money back, you can search for other money you may be owed on either the state Comptroller’s website or on the USA Today Network's New York database here: lohud.nydatabases.com/database/unclaimed-funds

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