Gift Card Fees: Shop Around and Watch Out for Troubled Companies

Gift cards from American Express, Chase, and Wells Fargo, as of December 2011, charge “purchase fees” from $3 to $7. Chase charges an “inactivity fee” of $2.50 a month if the card is not used for a year. Wells Fargo also charges for lost card replacement. What if the card is for a Bankrupt Company? You may be out of luck. Companies suspend the acceptance of such cards while in bankruptcy, which they treat as “loans.” If they go bankrupt, the consumer must file as creditor and litigate for months or years to get (often only a percentage) your money out.