How to avoid the gift-card 'gotcha'

Dec 05, 2009 (Star Tribune - McClatchy-Tribune Information Services via COMTEX) --
AXP | Quote | Chart | News | PowerRating -- REMEMBER THE GIFT-CARD "GOTCHAS" -- the expiration dates, fees for dormancy or monthly use, and initial set-up charges? The jolly news is that nearly all states have passed laws to eliminate restrictions. In Minnesota, cards cannot have expiration dates or fees, with a few exceptions, including debit cards, prepaid calling cards, reward cards such as the $25 bonus card from a restaurant (see below), and cards sold at banks that can be used anywhere issued by Amex, Visa or Mastercard.

Save with American Express. If you want to give a "use almost anywhere" card, American Express costs less in fees. It usually charges $4 or more per gift card, but if you have an Amex charge card and want to buy gift cards, you can use code GEN222 to waive the gift card fees. You'll still pay the $2 shipping fee, but cardholders can have multiple cards sent to one location to save shipping. Amex also allows the cardholder to personalize the card with the recipient's name. Go to www.americanexpress.com/gift to order or call 1-877-297-4438. Press "0" and "#" several times to reach an operator.

Write down a gift card's ID number and customer service number in case of loss. Most vendors offer replacement, although some might charge a fee.

Buy gift cards at a discount at GiftcardGranny.com . Granny is a new comparison shopping clearinghouse that directs customers to the best deals on discounted gift cards at sites such as Giftcards.com and Plasticjungle.com. Discounts aren't always steep (10 percent is common), but why not save $5 on a $50 gift card? All cards featured on Granny include free shipping. An auction site, DFWbid.com, also offers good deals, but the waiting for the best deals can be time consuming. Getting a $50 gift card for a penny might mean spending two hours to obtain it.

Use a gift card quickly, especially if you think the business might be vulnerable to closing. This is especially true for small businesses and restaurants.

Last week readers sent in more tips on restaurants offering bonus gift cards. Note that bonus cards usually have restrictions.

--Spend $25 in gift cards and get a $5 bonus at Famous Dave's (offer good in restaurants, not at www.famousdaves.com).

--Spend $50 and get a $10 bonus at Timber Lodge Steakhouse (www.timberlodgesteakhouse.com, 952-345-2892). Free shipping on phone or online orders.

--Spend $100 and get a $30 bonus at Herkimer's (Mpls., www.theherkimer.com).

--Spend $100 and get $25 free at Ike's Food and Cocktails (Mpls., 612-746-4537). The offer is good only at the downtown location, not at the airport. Also at Lettuce Entertain You restaurants (www.leye.com/gift-cards, 1-888-884-4438) such as Big Bowl, Tucci Benucch, Twin City Grill, Wildfire and Magic Pan. Maggiano's accepts the Lettuce gift cards but doesn't sell them.

--Spend $100 and get $20 at Sanctuary (Mpls., www.sanctuaryminneapolis.com) and Outback Steakhouse (www.outbacksteakhouse.com). Avoid the $2 shipping fee at Outback by purchasing in person. At Jax Cafe (Mpls., www.jaxcafe.com) the $20 can be taken as a bonus or donated to the Minnesotans Military Appreciation Fund, which Jax is matching up to $1,000.

John Ewoldt --612-673-7633 or jewoldt@startribune.com. If you spot a deal, share it at www.startribune.com/blogs/dealspotter.

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