Quick Answer: Why Do Gift Cards Have Activation Fees?

Companies that sell Visa gift cards, on the other hand, are in the business of making money directly from the card itself, and because they can’t mark up the price of the gift card (like a store does with a blouse or a crockpot), they charge activation fees to cover product costs.

Do gift cards have activation fees?

Generally speaking, gift cards bearing the logo of a financial network such as Discover or American Express cost an additional $3 to $6 to activate at the time of purchase. Store gift cards — good only for a particular retailer — tend not have such fees. “The $4 activation fee is for the Target Visa gift card.”

Do Visa gift cards cost money to activate?

Do All Visa Gift Cards Have A Fee. Yes; the fee is based on the gift card’s value. Gift card values from $10.00 to $74.99 have a $2.95 fee. Gift card values from $75.00 to $149.99 have a $3.95 fee.

Does Amazon gift card have activation fee?

Amazon.com Gift Cards in $15, $25, $50, and $100 denominations are sold by grocery, drug, and convenience stores throughout the United States and have no purchase fees. Get one for yourself, or give one as a gift. Please see participating stores. Restrictions apply to Amazon.com Gift Cards.

Are there any no fee gift cards?

No Usage Fees This Gift Card has no fees after purchase. No Expiration The funds on this Gift Card do not expire. Use with Confidence Can be used online and in-store. Widely Accepted More places than ever welcome American Express® Gift Cards.