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Dallas and Northeast Texas

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Consumer Complaints

BBB Accredited Business since 07/12/2010

CardLab, Inc.

Phone: (800) 443-8227Fax: (866) 376-9075

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BBB began including the text of consumer complaints and business responses in BBB Business Reviews on 07/01/2013 for complaints filed on 01/01/2013 and thereafter. This includes all complaints that meet our reporting guidelines and that are filed electronically. We also report on the resolution of the complaint, as determined by BBB.

Customer Complaints Summary

12 complaints closed with BBB in last 3 years | 4 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues2
Billing / Collection Issues2
Delivery Issues3
Problems with Product / Service5
Guarantee / Warranty Issues0
Total Closed Complaints12

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (12)BBB Closure Definitions
11/13/2014Advertising / Sales Issues | Read Complaint Details
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Complaint
Service fee policy is vaguely written & implies a service fee is assessed after 12 months of inactivity on an activated card not from date of purchase
My 8 and 12 year old sons both received a $100 Visa gift card for Xmas a few years back (12/2012). They promptly put the cards away for the purchase of a special gift in the future. Well the future now seems to have included $49.50 in service fees PER CARD. After speaking to a Customer Rep and his Supervisor, the company is hiding behind its fine printed policy on the back of the card. Young Children do not read fine print on the back of gift cards, nor do they understand the verbiage on the front sticker. From an adult perspective, the fine print on the back of the card is vaguely written and implies the service fee is assessed after 12 months of inactivity of an already activated card and not from the date of purchase. Nowhere on the card does it say from date of purchase. I don't understand how there can be activity on a card if it hasn't been activated? I find this a deliberate attempt to mislead the consumer and cheat young children out of their gift money. The gift card recipient is not the purchaser and is not as aware of the use policy as Card Lab thinks. This business model of profiting from unsuspecting children and consumers who take their time making purchases should not be considered lawful or as an acceptable business practice.

Desired Settlement
Refund of $99 in service fees, $48.50 each card.

Business Response
As per the cardholder agreement mailed with each card, the sticker affixed to the front of the card and the information printed on the back of the card, a fee will assess to the card balance after 12 months of inactivity and the expiration date is printed on the front of the card. As a one time courtesy, we have credited each card with 6 months worth of the $4.95 fee, bringing each card balance to: $35.15.

03/21/2014Billing / Collection Issues | Read Complaint Details
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Complaint
We had purchased Visa Gift Cards for our business from this website. They came and were okay. Then we had some cards left over and the value had been almost depleted due to inactivity, so I contacted them to get the cards liquidated. I submitted all the required information on December 11, 2013 and they told me I would be contacted in 30 days with pay out information. When I contacted them on January 11, 2014 they informed me that they never submitted it till December 27, 2013 so I would have to wait. Well that date has come and gone and it is now 60 days from the request and they have not processed anything yet. I have called and emailed and they are not doing anything about this.

Desired Settlement
We would like to be reimbursed for the cost of the cards when we initially bought them.

Business Response
Our customer placed an order on October 16, 2012, after having the cards for more than a year, they decided they did not need a portion of them. The customer contacted us for direction and we provided them with the option to have the cards liquidated and a credit to be placed on their account to be used towards a future purchase. As a courtesy, CardLab not only waived the $15 per card liquidation fee that is outlined in the Cardholder Agreement but we also credited 3x$4.95 in Monthly Service Fees back to each card. The assigned Customer Service Representative quoted the expected time-frames for this process to be completed, which is up to 30 "business" days (not 30 days) at the time of their request on 12/27/2013. The liquidation process was completed on 1/31/2014 and the customer was notified. The customer then placed a new order, using their account credit on 2/11/2014 and then filed this complaint on 2/12/2014. CardLab has fulfilled the commitment along with waiving fees and credited fees, unfortunately, no other credits/refunds will be issued at this time.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
While Cardlab did credit us back the amount. Their dates and explanation of the situation in this response are false and inaccurate. Upon speaking with the Supervisor he did admit their untimely reporting on this situation. All claims were submitted on December 11, 2013, and this claim was not fully resolved until February 11, 2014. To my calculations this is more than their "30 Business Days" statement. While we appreciated the full refund, the manner in which this claim was handled was the issue. The supervisor also verified that all stipulations were not fully explained through all email contact which was saved because of these issues.The customer service representative never informed us of only being allowed to have credit to another purchase just that we would have the option to choose a credit for the account or receive a refund check. Also, no other orders were placed with this company afer the request for card liquidation was placed. All emails, and contact information have been saved and documented. The supervisor at this company agreed with us and issued a full refund back to us on a visa card, because he said that he could not get a check approved. We accepted this and suggested to the supervisor that the company perhaps make standard emails that all CSR's send to customers that include all of their undisclosed information.

08/02/2013Delivery Issues | Read Complaint Details
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Complaint
I sent in my gift card electronically was told it would only take 24-48 hours over the phone four days later I'm still waiting for the payment.
I sent in a Macy's card last Friday to be sold electronically and was told it would take 24-48 hours when I called. I've called numerous times to see what the hold up is and they keep saying it will be today by the end of business hours. I am still waiting sent numerous emails they never responded to all I get is a receipt of my email. I did receive an email that states my amount was verified and the Macy s gift card has been revived but that's it. This email I received Saturday morning is the last email correspondence I have gotten was this morning stating that it takes 1-2 days not including weekends to verify the card. Who asked about verifying that was done on Saturday that's not the issue here its getting the payment that I feel is taking a longer time than I would expect. That's part of the problem none of the customer service people know what's actually going on with each individual customer and they talk in general without looking up the information.

Desired Settlement
Receive the $83.00 that was promised to me within 24-48 (yeah right) hours to my Paypal account.

Business' Initial Response
I attempted to look up the order by Mr. ******'s name and email address and I am unable to locate an account or order in our system. Please have Mr. ****** provide an Invoice Number so that I can further assist him.

Consumer's Final Response
Transaction ID #XXXXXX for order
CSRHD-XXXXXX Customer Service Ticket Number
CSRHD-XXXXXX Customer Service Ticket Number
CSRHD-XXXXXX Customer Service Ticket Number
I gave up after all these attempts to get a resolution. Good Luck!

05/23/2013Billing / Collection Issues | Read Complaint Details
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Complaint
Fraudulent Practice - Play of words breaking law.
Charge unlawful charges and took $15 from me
I was sent a $75 visa gift card last year around July. I tried to use it and realize it only has $60.15 left when I never activated it! I called and they say it's an incentive card so are not regulated or need to comply by state or federal law - on gift cards act - but it is in fact a play of words.

1. Federal Gift Card Law - Credit CARD Act of 2009 was signed into law on May 22, 2009, went into effect on August 22, 2010. It states CLEARLY that it covers the Bank issued visa cards.

2) Any funds added to the card must remain valid for a full 5 years

3) Post-sale fees may be imposed only if the card has not been used for 1 year or more

4) BUT rewards/incentives cards given away for FREE by the issuer may expire in one year or have fees prior to one year.

This card was I) my card is NOT even a year from issuance date 2) It is NOT a Free incentive card that the law applies to (eg. Victoria secret issue a card to customers with $5 gift card as incentives when customer did NOT pay for the $5 gift card)- BUT THIS is a corporate purchased visa card FULLY PAID by a company that I indirectly paid for. So there IS money transaction involved and cover by the Federal Act. 3) This company just CALL these corporate customer targeted visa card - an incentive card to try go around the VISA CARD act and try to fool consumers who often, like me purchase visa cards that are bought by companies. SO this card IS A BANK ISSUED VISA CARD under the federal gift card act and they can't have expiration less than 5 years while my expiration was a year or LESS! 4) According to the federal act, Post-sale fees may be imposed only if the card has not been used for 1 year or more - It has NOT EVEN BEEN A YEAR and I got deducted $14.85 - from a $75 Visa card - that is fraudulent practice that is charges even more hefty than credit card finance interest charges!

Desired Settlement
$15 refund and apology - if not I will contact attorney general office and seek class action, submit to internet fraud agencies as well as getting public attention towards this. They should be boycotted by general public!!!

Business' Initial Response
The mentioned card was purchased by one of our Corporate Customers with company funds and therefore is consider an Incentive Card.

Due to the Federal legislation that went into effect on 8/22/10, Incentive Cards do not follow the same guidelines as Gift Cards.

The card received was mailed directly to the Cardholder, on the front of the card a sticker is applied outlining the fee structure for the card, it is also printed on the back of the card and the Cardholder Agreement was mailed with the card.

The sticker affixed to the front of the card clearly states: a $4.95 Monthly Maintenance Fee beginning 5 months prior to the card expiration date. This is regardless if the card is activated or not.

With that being said, as a courtesy, I have requested a refund to be processed for the 3 fees that assessed to the card balance for a total of $14.85. Once the fees are applied back to the card, the Cardholder will need to spend the balance before the end of May to prevent the card from assessing another fee.

Consumer's Final Response
My giftcard no. is********************
I have cleared out my $60.15 balance today to avoid more unlawful charges.

02/04/2013Problems with Product / Service
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09/18/2014Advertising / Sales Issues | Read Complaint Details
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Complaint
I attempted to purchase a gift and was asked to contact security. I answered their questions and my purchase was declined.
On 8/26, I ordereed a $50 gift card as a birthday present. Gift Card requested that I contact them re the purchase. I answered a lot of "security" questions including "what are the closest cross streets to where you live". I received a subsequent email stating my order had been cancelled.

When I asked for an explanation they refused to provide one. I called my bank (PNC) and was informed that no inquiries had been made against my debit card.

I am thinking that ***** ***** and Gift Card must be running some sort of scam. Why else would they decline a valid Visa card without offering some rationale.

I would like a written response from Gift Card. I had to explain to my daughter-in-law why she did not get a birthday present and I feel humiliated.

Desired Settlement
A sufficiently conclusive explanation. I blieve this declination was prejudicial and occasioned by my questions concerning the ridiculous security questions proffered.

Business Response
At CardLab orders are reviewed for risk compliance. This particular order and customer details contained discrepancies in which CardLab found to be a risk to the company and therefore the order was cancelled and refunded in full. Unfortunately, the policies and the procedures followed to determine if an account is as risk is proprietary information and cannot be disclosed. We sincerely apologize for the inconveniences this may have caused.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
I certainly provided the correct answers; it's my card. I believe this is a phishing scheme and they are trying to obtain credit card numbers and demographic information. No business has ever asked the sort of questions their analyst asked. Be wary of this company.

05/27/2014Problems with Product / Service | Read Complaint Details
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Complaint
I cannot get in touch with the company via their toll-free number to resolve a complaint. The voicemail system is an infinite loop.
On 12/11/10, I purchased a gift card through this company for my mother. She failed to activate the gift card by calling the toll-free number. In last March of this year (2014), my sister called them and a representative told her that if I could provide proof of payment, the company would issue another gift card or refund my money. I tried to contact the company today, but their voicemail system put me into an infinite loop. I could not get a human being on the phone. I kept receiving a message telling me to press a button, but when I would press the button, I would get the same message.

Desired Settlement
I would like to receive a refund in the amount of $55.95 (the value of the card and the purchase price) or I would like to receive another gift card for the same amount.

Business Response
At the time the customer called we were experiencing a phone outage which has since been resolved. Unfortunately, due to the age of the purchase, we are unable to provide a refund or replacement card. Our Cardholder terms and conditions are outlined on our website, printed on a sticker affixed to the front of the card, printed on the back of each card. A copy of the Cardholder agreement is also mailed with each card. Additionally, during the checkout process, we disclose that we do not issue refunds once service has been provided. We apologize for the inconveniences.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Service was never provided and this is not what my sister was told when she called to inquire why my mother couldn't use the card. This is unacceptable. Since the card was never activated, it should not have expired.

10/09/2013Problems with Product / Service
12/12/2012Delivery Issues

Industry Comparison| Chart

Gift Certificates/Cards, Financial Services

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BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.