It was the "mice print," says Monica Sinclair, that turned a holiday shopping trip with her daughter into a disappointing and angry excursion at the mall. The Midtown residents headed to Lenox Square to pick up a sweater for Sinclair's daughter, Helen Hailes. The 12-year-old had saved a $50 Visa-brand Simon gift card --- and her own cash --- to buy it. But Helen discovered that monthly service charges on the card had erased $15 from its worth.
"We went to the concierge desk, where they couldn't do anything about it," said Sinclair, who bought the card last holiday season at Lenox, one of six metro malls managed by Simon Property Group. "After a week of pursuing them, I was told they still couldn't do anything. But I did notice that this year there's a big sign at the desk spelling out the rules for the cards."
The fine print that escaped Sinclair's notice is frequently overlooked by shoppers --- who are expected to spend $45 billion on gift cards this year, according to the global business consulting firm Bain & Co. of Boston.
The Governor's Office of Consumer Affairs is scheduled to issue a consumer alert today, urging shoppers to use caution when purchasing and using gift cards this holiday season.
"As in far too many consumer transactions, the bold print giveth and the fine print taketh away," said John S. Smith III, administrator of the Georgia consumer affairs office.
Ellen Tolley, with the National Retail Federation in Washington, said she was unaware of any consumer alerts but liked the idea.
"It's smart," she said. "Retailers aren't trying to hide these policies. They are available where you buy the card, and others have them posted online."
In the fine print are details on fees, handling charges, replacement costs and expiration dates that can make the difference between an enjoyable shopping spree and a headache --- and potential embarrassment for the card buyer and the recipient.
Consumers are going for the cards in a big way.
According to the National Retail Federation, 70 percent of consumers plan to buy gift cards this season, and almost 50 percent expect to receive one.
Cards are available for major retailers, Internet sites, restaurants and gas stations, among others. They take the guesswork out of gift-giving while offering the recipient a chance to purchase something she really wants but might not buy with her own money.
"We actually did a survey of consumers 18 years or older, and more than half said knowing what to get the person is the hardest part of gift-giving," said Angela Ashley, a spokeswoman for Bank of America. "So we introduced a gift card in the fall of 2001 that you can purchase online or over the phone, from $25 to $600. It's got the Visa logo on it and can be used at millions of locations where Visa debit cards are accepted, including online."
The Bank of America cards are good for 12 months, can be personalized and, if lost, can be replaced. But ordering them isn't cheap: Fees range from $5.95 to $11.95 to cover shipping, handling and account access. After six months, whatever balance remains on a card is subject to a monthly maintenance fee of $2.50 --- an amount that can turn a small balance into a big zero.
"We've found that the majority of card recipients use them before the six months is up," said Ashley.
In a major shopping excursion recently, James Homewood stopped by the Mall of Georgia to pick up 65 Simon gift cards for his employees at Ryder Integrated Logistics in Suwanee.
"It's easier," he said. "They can use it anywhere they want. If you buy a gift certificate from a grocery store or Wal-Mart, it has to be used there, and if they don't like to shop there, it's a hassle. This way they can go to a restaurant, buy clothes, get whatever they need."
Even though this is the second year Homewood is giving the cards as gifts, he was unaware of the service charges that begin accruing after six months of inactivity.
"That's something I'll have to put out to my employees so they know to use them," he said.
Because they look like a credit card and are used much like one, most consumers assume the gift cards operate the same way.
"It's plastic, so people think it's protected, but stored value cards are not protected by the laws that apply to credit and debit cards," said Jean Ann Fox, director of consumer protection for the Consumer Federation of America in Washington. "There's no federal law to protect consumers of cards. You're on your own. The fine print on the little card that came from the hanging rack at the cash register is the only agreement you have."
According to Anthony Andreoli, national director of unclaimed property practice at Deloitte, in Los Angeles, about 10 percent of gift cards go unredeemed. This year alone, that translates to almost $4 billion.
"Some of that is from people who might use $15 of a $20 card but never use the other $5," said Andreoli. "Especially for cards under $50 or $25, the unredeemed rate goes as high as 18 percent. . . . It's creating a huge windfall of money [for merchants] and it's going to get federal attention because the numbers are so huge."
Simon's monthly fees and the $1.50 per card handling charge at the point of purchase help offset the array of costs the cards create, said Stewart Stockdale, chief marketing officer of Simon Property Group. Monthly fees of $2.50 kick in after the card is unused for six months.
"We have to market it, provide the customer service at the booth where you buy it, and cover fraud," he said. "We maintain databanks on the cards. It costs $1.50 to put your [bank] card in an ATM and pull your own money out; here, you get all the benefits and the packaging."
Buyers of Simon gift cards will find a two-sided sheet of detailed instructions with each one they bring home. In addition to service charges on unused cards, there's a 50-cent charge for each telephoned balance inquiry after the first one. The benefits include acceptance at any location that takes Visa, online transaction histories and balances, and replacement for a lost or stolen card if you have the number of the card to report.
