Watch for gift cards with hidden fees

BUFFALO, N.Y. (WIVB) - With Christmas days away, many shoppers will grab gift cards to use for last minute gifts.

Retail experts now estimate 80-percent of all holiday shoppers are going to buy one or more gift cards. But you have to watch out for some of the traps, such as shipping charges if you buy online or by phone, and steep activation fees.

There are two basic types of gift cards: those offered by merchants for use exclusively at their place of business and general merchandise gift cards that work like plastic money.

The general merchandise gift cards are usually issued by banks, and they can be the priciest with activation fees sometimes as high as $25.

But the Better Business Bureau points out Congress gave consumers a basketful of new protections by passing the CARD Act, which took effect in 2010 and restricts a lot of the fees and charges. Peggy Penders of the BBB also cautions buyers to make sure you load the value of the card at the point of sale rather than buying one with a pre-determined value.

For more tips on getting the best out of a gift card purchasing experience, follow this link.