A recent LA Times consumer advocate column states that a customer was upset when he found out that Target charged him a $4 activation fee. When I tried to verify this by going through the purchasing process with Target online, I was not charged an activation fee, but only a $1.95 shipping and handling fee, a cost that seems reasonable.
Is Target charging an activation fee for its gift cards purchased in-store? Why?
Target’s closed loop gift cards have no fees, in fact their slogan is “no fees, no expiration, no kidding”. It’s on all the signs.
The guest may have picked up a Visa or Amex Gift Card which does have a fee, similar to other competitive Visa Gift Cards.
Andy Rowe
Executive Director
The Retail Gift Card Association
I’ve just encountered the same problem. They have a rack at the checkout line with those Visa or Amex Gift Card which charges $4 fee for a $25 card, and it has Target logo on it. I thought it’s a Target gift card since I didn’t see any plain Target gift cards anywhere. I ended up going home because I thought the charge is ridiculous. That’s why I ended up here researching why, and my wife skipped dinner going to Macys to buy a “normal” gift card. Looks like the genius at Target is tanking their own gift card business.