Disadvantages
Unless the gift card is obtained at a discount (paying less than the actual value of the card), some point out that trading real money for scrip is unproductive as it then ties up that money until it is used, and usually it may only be used at one store. Furthermore, not all gift cards issued are redeemed. In 2006, the value of unredeemed gift cards was estimated at almost US$8 billion.
VISA, MasterCard and American Express gift cards are initially funded by a credit card or bank account, after which the funding account and gift card are not connected to one another. Therefore, once the predetermined funds are consumed, the card number expires. Gift card holders are thus able to make riskier Internet purchases, without the fear of having to persuade a merchant to stop pulling funds from them. VISA and MasterCard also have re-loadable debit cards.
One disadvantage of gift scrip is that some gift card providers charge "maintenance fees" on the cards, particularly if they are not used after a certain period of time, or the card will expire after a given period of time. Some provinces and states in North America (e.g. California, Ontario, Massachusetts, Ohio, Washington) have enacted laws to eliminate non-use fees or expirations, but because the laws often only apply to single-merchant cards buyers have to review the gift card conditions prior to purchase to determine exact restrictions and fees. Additionally, if a retailer goes bankrupt, gift cards can suddenly become worthless. Even if stores do not close immediately, the company may stop accepting the cards. This became a significant issue during the Global financial crisis of 2008–2009, prompting the Consumers Union to call upon the Federal Trade Commission to regulate the issue.
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