What You Need to Know About Mastercard Gift Card Fees
Granny will give it to you straight, because fees are important to understand. A Mastercard gift card has really only one fee that matters: a small activation fee you pay once when you buy it, running from $2.95 to $6.95 depending on the card's value. After that, there's nothing charged for spending it, no monthly fee, and no inactivity fee eating away at the balance. The funds don't expire either. Here's exactly what you'll pay, what you won't, and how to make sure every dollar ends up where you want it.
What Are the Fees for a Mastercard Gift Card?
The one fee you do pay: activation
When you buy a Mastercard gift card, you pay a one-time activation fee, sometimes called a processing fee. It's paid by whoever buys the card, and it's the only fee tied to getting the card up and running. What you pay depends on how much you load on it
Fees can be off putting, but they should never keep you from buying the gift card you want. Stay informed on all the fees associated with Mastercard gift cards so you know exactly what to expect.
Mastercard Gift Card Activation Fee
- Mastercard gift cards with a value of $10.00 to $74.99 have a $2.95 fee
- Mastercard gift cards with a value of $75.00 to $149.99 have a $3.95 fee
- Mastercard gift cards with a value of $150.00 to $249.99 have a $4.95 fee
- Mastercard gift cards with a value of $250.00 to $349.99 have a $5.95 fee
- Mastercard gift cards with a value of $350.00 to $500.00 have a $6.95 fee
Here's Granny's tip: the fee is a flat amount, not a percentage, so it's a smaller slice on a bigger card. Buy a $50 card and the $2.95 fee is about six percent. Buy a $200 card and the $4.95 fee is under three. If you're loading up anyway, a larger card is the better deal per dollar. One more note for folks in Hawaii, the purchase fee is capped at $5.00 there.
Granny will also say this plainly: fees vary by where you shop. Mastercard runs the payment network, but it doesn't set the fee, the seller does. At Gift Card Granny that activation fee is kept as low as it goes, so it's worth a quick compare before you buy elsewhere.
The fees people worry about, and why you won't pay them
This is the part most fees articles get wrong, so read it twice. Once a Mastercard gift card is bought and activated, there is no fee for using it. Spend it once, spend it over months, let it sit in a drawer, it makes no difference to the balance.
- No monthly fee. Nothing is deducted month to month.
- No inactivity or dormancy fee. Leaving the card unused does not shrink the balance. If you find one in a coat pocket next winter, the full amount is still there.
- No fee to check your balance, in store, by phone, or online.
- No usage fee. Buying things with the card costs you nothing beyond the price of what you're buying.
There is one situation where a fee can come up later, and it isn't dormancy. Your card shows a "valid thru" date on the front. That date is not an expiration, the money never expires. But once the date passes, the funds are held until you request a new card, and that replacement card costs $5.00. Use the balance before the "valid thru" date and you'll never see it. Granny's advice: treat the printed date like a nudge to spend, not a deadline on your money.
Do Mastercard gift cards expire?
No. The funds on a Gift Card Granny Mastercard gift card do not expire. The "valid thru" date printed on the card is there so the card works with online and phone orders that ask for one, not to run out the clock on your balance. After that date, your money is simply held until you order a replacement card, which carries the $5.00 fee mentioned above.
A few optional fees, only if they apply to you
Most people never touch these, but Granny likes to be thorough:
- Build-a-Card personalization: a flat $1.00 to put your own photo on a plastic card.
- Greeting card: a flat $1.50 if you add one.
- Digital to plastic: a flat $5.00 if you convert a digital Mastercard gift card into a physical one.
None of these are automatic. You only pay if you choose that option at checkout.
How to avoid paying more than you have to
A little know-how keeps the whole balance in your pocket:
- Buy the right size. Since the activation fee is flat, one larger card usually beats several small ones on fees.
- Compare where you buy. The activation fee is set by the seller, so the same card can cost a little more at one place than another.
- Spend before the "valid thru" date so you never need a $5.00 replacement.
- Know your balance before a big trip, so nothing gets declined at the register. You can check it anytime, for free.
Where to buy a Mastercard gift card
You can buy Mastercard gift cards at plenty of places, from supermarkets to drugstores, and online at Gift Card Granny. On Gift Card Granny you'll find digital, plastic, and business Mastercard gift cards, with the activation fee kept as low as it goes and plastic orders placed before 4 p.m. ET printed and shipped the same day. If you'd like the full breakdown before you buy, the Mastercard gift card fee schedule lays out every number in one place.
And while you're shopping, Gift Card Granny carries a big catalog of retail gift cards too, and select brands earn cash back that helps on your next purchase (the brands and rates rotate, so check the card's page). That cash back is a retail-brand perk, not something that applies to open-loop Visa or Mastercard gift cards.
That's the whole story on Mastercard gift card fees. One small activation fee, nothing to spend it, and money that waits for you. Happy gifting, from Granny.
Frequently asked questions
How much is the activation fee on a Mastercard gift card?
It depends on the card's value: $2.95 for $10 to $74.99, $3.95 for $75 to $149.99, $4.95 for $150 to $249.99, $5.95 for $250 to $349.99, and $6.95 for $350 to $500. It's a one-time fee paid at purchase. Purchasers with a Hawaii billing address pay no more than $5.00.
Do Mastercard gift cards have a monthly or inactivity fee?
No. There is no monthly fee and no inactivity or dormancy fee. Once the card is activated, the balance does not shrink over time, even if you leave the card unused for a long stretch.
Do Mastercard gift cards expire?
No. The funds do not expire. The "valid thru" date on the card is for online and phone orders that require one. After that date, your money is held until you request a replacement card, which costs $5.00.
Is there a fee to use a Mastercard gift card?
No. There is no usage fee. You pay only for what you buy, and checking your balance is free in store, by phone, or online.
How can I avoid Mastercard gift card fees?
Buy a larger card rather than several small ones, since the activation fee is a flat amount. Compare sellers, because the fee is set by the seller, not Mastercard. Spend the balance before the "valid thru" date so you never need a $5.00 replacement card.
