The Fine Print: Watch for fees on bank gift cards

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Retail gift cards for specific stores cannot, under California law, expire or charge fees of any kind. So, if you get someone a $25 card for Cost Plus, for example, that’s exactly the amount you pay and the exact amount the recipient can use to buy tchotchkes.

But bank gift cards — which have credit card logos on them from Visa, MasterCard or American Express -- are almost unregulated. On the plus side, they can be used in most stores that take regular credit cards. And they’re widely available for sale in supermarkets, pharmacies and even mom-and-pop liquor shops.

However, beware of fees for both buyer and seller. A $25 card generally costs about $4 more than that to buy, which is a 16% hit right off the bat. And for the recipient, some of the cards deduct ‘maintenance’ fees after a grace period. There can even be fees to call to check on the balance.

Bank cards are handy. Just be aware that they’re gifts that can keep on taking.

— David Colker