The Gift Card Activation Scam

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I guess I lead a sheltered life or something, but I didn’t know about this:

Los Angeles resident James Myers stopped by a Target store in Culver City recently to buy a $25 gift card. Easy, right?

Not so much, it turns out. Inspecting his receipt, Myers discovered that he’d been charged $29 for the transaction. He was told that the price included a $4 “activation fee.”

….Target isn’t the only gift-card provider to charge an activation fee. American Express, for example, charges up to $6.95. Visa gift cards can come with activation fees of up to $5.95.

That’s from LA Times consumer columnist David Lazarus, who notes that not only is $4 outrageously high for swiping a piece of plastic and pressing a couple of keys, but “the company offering the gift card already benefits in other ways.” Like, say, taking in money now and getting to keep it until the gift card is used. Or the fact that some gift cards get lost and never redeemed at all. But enough is never enough, is it?

By the way, in the same column Lazarus reports that Wells Fargo and Bank of America have no intention of changing their habit of reordering debit card transactions even though Wells was just fined $203 million for doing it. “Say this about big banks,” Lazarus writes, “They’re persistent.”

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Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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