onion wrote:Personally, I'd just be using those gift cards for stuff like Target grocery shopping and whatnot. Not really any stop payments or issues of that sort on groceries. For purchases like electronics, I'd definitely whip out the AmEx, though.
Think about it... How many times do you actually have to do billing disputes, especially on everyday items? Its still a risk, but its one I'd be willing to take if I were using gift cards. I don't bother since I get 3% at grocery stores, 3% on gas, 2% on dining, and 2% on department stores. Maybe if I get a Freedom someday I'll consider it.
It's not the risk of a dispute with a reputable merchant so much as it is the risk of the merchant's card processing system or records getting hacked or stolen by a rogue employee. Target has already had problems on that front. If the card or card number is lost or stolen, then you can recover only the funds that are still on the card. You can't recover any funds that were already stolen. From the terms (Amex's capitalization):
NO REFUNDS WILL BE PROVIDED FOR AMOUNTS DEBITED FROM YOUR LOST OR STOLEN CARD BEFORE YOU NOTIFY US.