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Respected Contributor
Posts: 2,352
Registered: ‎03-11-2010

Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

I usually don't buy GC but this year I am stumped for one of my relatives and was going to get him a Mastercard GC so her could buy what  he wanted  but I noticed a $9.00 fee to buy it  written on the top of the card. What do these cards charge a fee and others are free? 

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Valued Contributor
Posts: 684
Registered: ‎06-08-2011

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

I don't get it either.  It's one of the reasons I don't buy those cards.  How about an Amazon gift card or even Home Depot? 

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Trusted Contributor
Posts: 1,744
Registered: ‎03-09-2010

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

I buy my visa gift cards from my bank. They charge a $4 fee because people are willing to pay it.  I’ve never seen a fee as much as $9.

 

The retail store gift cards don’t charge fee. But then, you run the risk of the store going out of business and being stuck with a useless gift card.

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Respected Contributor
Posts: 4,314
Registered: ‎03-20-2010

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

There are costs associated with issuing gift cards.  Most stores absorb them as a cost of doing business since the money will be spent in their store.  When issuing a Visa or MasterCard gift cards those costs are passed on to the buyer since that is the only way to recover them. 

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Honored Contributor
Posts: 18,838
Registered: ‎07-21-2011

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

@cuddlesmama   Simple and easy -- they want to make money!  ho! ho! ho!   This the season to be jolly.

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Honored Contributor
Posts: 18,415
Registered: ‎11-25-2011

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

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Super Contributor
Posts: 404
Registered: ‎11-10-2015

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

Maybe I'm old fashion, but, why not just send money?  

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Respected Contributor
Posts: 3,787
Registered: ‎02-20-2017

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

I only buy retail gift cards.   

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Respected Contributor
Posts: 3,814
Registered: ‎11-24-2011

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

[ Edited ]

What timing! I just picked up 2 mastercard giftcards at Stop & Shop a short time ago while doing grocery shopping. $5.95 activation on each one. I was carping to the register lady about it and she told me that if you get the ones with a fixed amount already on them (that's what I got) they cost less that the ones you buy and choose the amount of money you want to put on it. Can't remember 100% for sure but think she said those can go as high as $9.95 depending on the amount. These are for each of my son's girlfriends along with a small gift. Feels okay to me giving cash to my kids & grandkids, (daughter's kids who are no longer children) but something just doesn't feel right about giving cash to the girlfriends so giftcards is what it will be.

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Respected Contributor
Posts: 2,352
Registered: ‎03-11-2010

Re: Why Does MasterCard, Visa Etc. Charge An Extra Fee For There Gift Cards?

Thank you everyone!! Much appreciated!