Surprisingly, Huffman says his level of spending is actually small compared to some other rewards chasers.
Why Does Any of This Matter to the Gift Card Recipient?
What we see now is a short-term effect on both merchants and issuers as the market migrates to chip and adopts the EMV standard.Buying gift cards with credit cards gets easier.But changes are still some months away.Crooks will use a stolen credit card or (in the case of online purchases) credit card number and quickly buy a bunch of gift cards or prepaid cards, before the stolen or compromised credit card is frozen or deactivated.As more merchants are enabling to accept EMV chip cards to reduce counterfeit card fraud in stores, gift cards are becoming a high-value target for fraudsters.In many cases, stores that want to avoid incurring major fraud-related losses have placed tighter controls on gift card sales.No replacements, no matter what with cash transactions.While he doesnt have exact figures, Duncan says these policies are very common right now.I've personally had to change my gift card buying strategy with the recent changes, says Huffman.
If a gift card is purchased with a credit card and the credit card transaction is not processed with EMV technology, then the grocery krispy kreme vouchers 2018 merchant that sold the credit card is 100 liable for the full amount of the gift card.
Grocery retailers have EMV chip technology and don't want to be liable for fraudulent gift card transactions, which are growing in numbers.Walsh notes that rather than enact an outright ban on credit card transactions involving gift card purchases, some stores are just adding a few simple security measures, such as checking IDs before processing these charges.Just in the first quarter of 2016 alone, some stores have seen chargebacks that were greater than all of last year.That means if a gift card is purchased from a grocery store with a fraudulent credit card, and the gift card is gifted, the grocery store will get a chargeback from the bank for the full value of the fraudulent transaction.For the time being, shoppers should just be aware of these policies, and check with retailers about their specific rules regarding gift card purchases.Video: Tips for using mobile gift cards.Walsh notes that retailers are making individual determinations about whether such policies are needed, often based on their assessment of potential risk.