As much as I try to avoid wasting money to a lack of planning or forethought, it still happens. Just this weekend actually. My father-in-law just lost his job and my in-laws are without any income stream until unemployment starts. And they weren't doing terribly well before he lost his job. My husband and I wanted to send them some money. Knowing they weren't going to cash a check from us, we decided to get some visa gift cards.

We looked at the grocery store, knowing that we could get credit card cash back and gas discounts by buying the cards there. We wanted to get $300, but the store only had $50-cards. We first walked away, saying we'd look elsewhere. But then I thought about the gas rewards and we impulsively grabbed 4 $50 cards. After we checked out, I realized each card had a $4.95 activation fee. Duh! $19.80 in stupid tax paid. It completely negates the credit card rewards and gas rewards. At least we did something good. Next time, I think we'll just get them a wal-mart gift card.

Try PayPal. It's free.

I have never bought a gift card. I think the industry burned itself by ripping people off early in the game. At least they made me avoid them.

[/quote]Try PayPal. It's free.[/quote]

I wish I could but my in-laws do not have internet access, believe it or not!

Amen. I was thinking about getting a Visa Gift Card for a relative's birthday at a grocery store with my Blue Cash Pref. card and when I saw the outrageous activation fee it turned me off right then and there. I don't buy gift cards and I don't think I ever will.

Don't get me started on the lunacy that is otherwise known as pre-paid debit cards I see people around me using. Nickle and dime much?

There's often a good reason to use a prepaid card. For one, the Wal-Mart prepaid card (talking the visa or whatever one...not the gift card) could get a discount on gas just like the regular wal-mart card. Another...I think some cards make it easy for a parent to load money on it for their kids (cheaper than sending Western Union, more convenient than a check, safer than giving them your atm card).

Typically Gift cards specific to a business (e.g. walmart, target, outback steakhouse, lowe's) do not have any fees. "Cash" cards do. You can sometimes find them for very little fees or no fees. The easiest way to find these deals is to lurk at forums like fatwallet.

Hey, your intentions were good. So you learned a lesson, it was pretty cheap.

I've gotten people gift cards at stores (Nordstrom, Bloomie's, etc.) with no fees, but you need to check first. Some stores discount the card value if not used within a certain period, like 6 mos. or a year. Make sure you don't buy a card with such limitations.

Another alternative is a specific-use card. I gave my mother an authorized user gas credit card, for example. She was thrilled and very careful in her use of it, but it relieved her mind about the cost of filling up her car when she went shopping or to the doctor.

The only stupid tax is the lottery.