Prepaid Credit Card Gift - Don’t Give Me One Please

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Prepaid Credit Card Gift - Don’t Give Me One Please

Wednesday, July 25th, 2007 Subscribe To Our Feed

There are many pitfalls of prepaid credit card gift and so-called “reloadable” prepaid cards that allow repeated deposits into its account. The popular gift cards have been a big hit with consumers for their convenience and modern cachet.

They’ve also been a big hit for retailers and the credit card industry but for two very different reasons: non-redemption rates and fees. Various research puts the non-redemption rates (the dollar value of cards which is never spent) of prepaid gift and debit cards between 6% and 25%; even the lower figure would have to be called a boon for card distributors when you consider that according to the National Retail Federation (NRF) Gift Card Survey, consumers spent a whopping $24.81 billion dollars on gifts cards in 2006.

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