Why do Visa gift cards have an activation fee?

Companies that sell Visa gift cards, on the other hand, are in the business of making money directly from the card itself, and because they can’t mark up the price of the gift card (like a store does with a blouse or a crockpot), they charge activation fees to cover product costs.

Is there an activation fee on Visa gift cards?

Prepaid Visa Activation Fees

A prepaid Visa activation fee is a fee that is charged to the buyer of the prepaid card to put value onto the card. … At grocery stores, it is typically a $4.95 fee on top of the amount on the gift cards. An example would be $25 + $4.95 activation fee.

What is the activation fee for a $50 Visa gift card?

Visa $50 Gift Card ($4.95 activation fee)

Why are there purchase fees on Visa gift cards?

Visa, Mastercard®, American Express® and other bank-issued gift cards charge a purchase fee to cover the money they have to pay to third parties like the store, the program manager, and the processor.

What is the activation fee for a $25 Visa gift card?

Visa $25 Gift Card ($3.95 activation fee)

What prepaid cards have no fees?

The 9 Best Zero-Fee Reloadable Prepaid Cards

  • Chime Credit Builder Visa. Visit site.
  • Featured. American Express Bluebird. …
  • Featured. NetSpend Visa Prepaid Card. …
  • PayPal Prepaid MasterCard. …
  • Brinks Prepaid MasterCard. …
  • Movo Virtual Prepaid Visa Card. …
  • Starbucks Rewards Visa Prepaid Card. …
  • Fifth Third’s Access 360° Prepaid Debit Card.
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What gift cards do not have an activation fee?

Prepaid Cards With No Activation Fee in 2021

  • Brinks Prepaid Mastercard. …
  • PayPal Prepaid Mastercard® …
  • NetSpend® Visa® Prepaid Card. …
  • Playcard Prepaid Mastercard. …
  • NetSpend® Visa® Prepaid Card. …
  • Bluebird® American Express® Prepaid Debit Account. …
  • The Mango Prepaid Mastercard® …
  • Serve® American Express® Prepaid Debit Account.