It’s often said that giving gift cards is “impersonal,” but consumers have spoken, and it turns out that as both givers and recipients, we’re perfectly fine with impersonal. Consumers love the flexibility and convenience of gift cards, merchants love consumers who buy their gift cards. Unfortunately, gift cards are prime targets for scammers and fraudsters, and gift card fraud can leave merchants vulnerable to damaging chargebacks from the credit cards that were originally used to purchase them. How can merchants protect themselves—and their customers—against gift card fraud?

Gift card sales were around $160 billion in 2018, and eyebrow-raising figure that keeps growing every year. Despite the risks, it makes sense that merchants would want to offer gift cards—consumers want them, they increase sales, and they can be a good marketing tool. The important thing is to understand the ways in which fraudsters can exploit gift cards so that you can take precautions to minimize the risk and empower your consumers to keep their funds safe.

Full Text:
chargebackgurus.com/blog/gift-card-fraud

©Chargeback Gurus 2020
Production: Tyler DeLarm
Narration: Sarah Rife