AT&T Wireless Rebate Visa Gift Cards Are A Raw Deal
AT&T Wireless Visa debit gift cards that come as rebates for iPhone, Blackberry, or other mobile phone purchases are a raw deal! AT&T advertises prices for popular mobile phones that include $50 or $100 off in the form of a Visa gift card that the customer must apply for after the purchase. But…most customers will never get to use the card for the full $50 or $100.
How the Rebate Works
After purchasing a qualifying phone from AT&T Wireless, the customer receives paperwork to apply for a rebate in the form of a Visa debit gift card. As with most rebates, the customer must complete a form and mail it in along with the receipt and the applicable codes from the new phone’s packaging. Then, the customer waits. And waits.
My wife and I both purchased new phones from AT&T within the last year, and we both waited about six weeks to receive our $100 rebate gift cards. That’s not unusual for mail-in rebates, and the waiting period is fully explained in AT&T promotional materials. The problem with this rebate offer, however, isn’t the wait. It’s the form of the rebate: The Visa debit gift card.
Unlike a cash rebate (that comes as a check for the rebate amount), the AT&T rebate comes on a preloaded Visa gift card. The card can be used anywhere that accepts Visa. Almost as good as cash, right? Not quite.
My Wife’s Experience
My wife decided to use her AT&T Visa rebate card last weekend to make a couple of purchases. She actived the card and went off to the mall. She made her first purchase for $41 without trouble. The problems, however, started when she tried to use the card to make a second purchase.
Her second purchase was going to be about $100—more than the remaining value ($59) on the gift card. She carefully explained to the clerk that she’d like to charge the AT&T rebate card for exactly the remaining balance, and pay the balance on the item with another card. “No problem,” the clerk said as she ran the gift card through for the exact amount of the remaining balance.
To my wife’s surprise, the card was declined. The clerk tried again. Declined.
My wife called the number on the back of the AT&T rebate Visa card from the store. That’s when things got interesting. The woman who answered the phone told her that when she used the gift card the first time, the company put a hold on the card for the amount my wife charged plus twenty percent (to allow for a potential tip). Of course, my wife used the card in a clothing store, not a restaurant, but the card must do this for all transactions. That hold stays on the card for a few business days.
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Not only did that hold prohibit my wife from using the full value of the card, but since she had attempted a purchase the caused the card to be declined, the woman told her that the card’s value would now be “frozen” for ten days! There would be no way to use the card for any reason until the freeze expires after ten days. Talking to the company and explaining the situation did nothing.
Obviously, AT&T/Visa puts these restrictions on these gift cards to prevent a cardholder from overcharging the card’s value. Because the card is not reloadable and not a credit card, Visa would have no way to recover any charges that exceed the gift card’s initial value.
Unfortunately, the restrictions also make it very difficult for the consumer to use the card for its full value. My guess? That’s what AT&T is counting on. By issuing gift cards instead of cash, they know that some people may forget about the card altogether, others won’t use it before it expires (it’s only valid for a few months), and most others will only use a fraction of the balance. Instead of paying out rebates of $100 per phone, AT&T probably pays back, on average, a much lower amount.
One final frustration: You can’t use the rebate Visa cards to pay your AT&T Wireless bill.
Buyer Beware!
So if you buy an AT&T Wireless phone and receive a Visa rebate gift card, beware! There may be no way to use the full value of the card. If somebody knows how, please share!
If you wish to voice complaints to AT&T Wireless regarding these Visa rebate cards, call one of their executive customer service numbers (attached to their corporate offices). Phone numbers courtesy of Consumerist, where you can find these number for all the big wireless carriers.
AT&T Executive Customer Service
- Eastern States: 877-707-6220
- Western States: 800-498-1912
Of course, you can also feel free to share your story and/or complaints about these rebate cards here in a comment.
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I have an Amex clear card that rewards me with a $25 amex gift card based on points. It works very similarly to a Visa gift card. Instead of dealing with the hassle of having people split payments up among different cards, as soon as I get a rewards card in the mail, I instantly buy myself a gift certificate from Amazon for the entire value of the card. No dealing with fees, penalties, whatever.
I’ve always just used the rebate cards to apply the amount to my next cell phone bill. Has worked every time and I get the full value.
I would think that Samir’s gift certificate method would work normally, and my initial reaction was to do something like that, but it’s the 20% over charge that concerns me. If you tried to use the $100 card to charge $100 in gift certificates, wouldn’t the card decline because it couldn’t take a $120 authorization on the account? How would you possibly get all of the money off unless you made a $80 transaction, then 5 days later a $16 transaction, and so on?
There must be some way to get the total amount off in one transaction.
I work at a bank and we have done cash advances on these cards for the exact amount on the card with no problem…you can then deposit the money or take the cash.
it took me 2hrs to activate the att reward card! Then I have questions about using it. It looks like att makes this very difficult to use it !!! Charge gas? who knows. 10 hold on card after one purchase? This stinks.
What a joke these cards are. Now more than ever I am determined to get this card used up no matter what. We all need to go up the corporate ladder to complain about these “greatrewards” haha.
I have a Visa gift card from a Swiffer rebate from earlier this year and haven’t been able to use the last $3 + change – it keeps getting declined. And I’ve waited more than those periods so that’s not really the issue. I may try Jacqueline’s suggestion and just cash it at the bank, thanks!
I have an easy approach to these things. I just use the full amount all at once. For example, a $50 card I will take to the grocery store and then just use it all at once. $50 is taken of what would have been an $80 bill. I have never had a problem doing this.
The extra 20% authorization. depends on the vendor. Some vendors are designated as restaurants or some other tip related industry. I know this because I thought I was overcharged by one place but when I called my credit card company, they explained there was a 20% authorization added to the amount charged. That was for a bar. But I have found that grocery stores normally work just fine and don’t get the extra 20% temporary authorization.
if the ammount of the card is less then the total bill you pay the difference FIRST. only when using the promotion card at a retailer that accepts tips does the20% surcharge apply and if you ar getting a stupid answer from a rep at the crad centre on the back of the card ask for a supervisor they WILL know the correct answer
I have a large business account with AT&T and my biz rep told me that the reason they do rebated this way is because, statistically, only about 15% of rebates are used and that the excess money goes back to AT&T. It’s a huge fraud to their customers.
You where misinformed, actually att promotion cards can be used anywhere visa is accepted icluding att cusomer service or at att store to pay yor bill, All money not used on att visa prpmotion is not going to att, its goes to your state revunue agency, as unclaimed money, of course the goverment isnt the fastest on doing things, usually letters and checks will go out in 2 yrs from that agency.
Your rdight Phil. This is all a big joke….
Wow, I figured that they were counting on some of the rebates never being used, but that’s incredible if only 15% ever get used! That’s nuts.
You really do have to push to talk to a supervisor. We just got off the phone with at&t and the lady would not accept our card for our bill and said we could not use it for gas or any other shopping. She told us the rebate is only for at&t accessories. I wonder how much commission she gets?
She had no idea what she was talking about. But, imagine how many people end up believing her…
i have never had a problem with rebate cards…..the thing to do is…..
50.00 rebate card -41.50 purchase=leave 8.50 on card. Next purchase is 10.00. you have to pay balance down to exact amount or less left on card….in this case i would pay 1.50 on my debit card, and the final payment would be with the rebate card for 8.50
the rebate has to be the final payment, you can’t use it to bring the balance down to 1.50, and then pay that with debit, it worn’t work.
I can’t even find how to activate the stupid card. It is from AT&T.
Any advice?
I have returned the documentation and my original IMEI (cut from the box). Folowing week I got an SMS from ATT rebates stating that they are processing my rebate. Yesterday I got a letter in the mail: “we are unable to process your request because you did not meet the requirements: Receipt and no IMEI bar code” I have sent both IN ORIGINAL, because that what they said, and no I ended up with no paperworks and a big hole in the original box with no serial and IMEI. What can be done, this is crazy! I’m gonna call first thing in the morning.
ATT is a criminal enterprise. The individual states shouldn’t allow ATT to advertise the post rebate prices because less than half of the rebate value is ever paid out by ATT. They make it so difficult, make you wait so long, throw up so many obstacles.
I suggest you write your attorney general and complain of this fraudulent activity. Make ATT show audited proof that at least 80% of rebates are delivered to customers.
What I do with the rebate cards: take them right to the gas station and fill up w/ as much gas as I can in 20, 30, 50 dollar increments. This way I can keep track of the value that is on the card.
Between the rebate cards, giving your kids the ability to spend money on games and music, deceptive pricing, extremely dense legalese and other fraudulent activity, they need to be smacked down a bit.
Write to your politician, consumer advocates, attorney general and complain. Make the phone companies prove the rebates are actually paid, not just another bait-n-switch tactic.
The squeaky wheel gets the grease!
My mistake was to leave the card inactive — then all the fees started adding up until $20+ of my rebate was gone. Not only does the retailer hope that you do not redeem the rebate, but the issuing company steals it back from you. When did checks became a bad thing?
I was suspose to get a 50.00 dollar rebate from att back in august of 2009 and im still waiting.I call every week and im told call back in 5-7 business days and hopefully well have some good news. I have copies of everything and they are being looked at by a lawyer.
Just got a visa prepaid rebate card from Nissan. In addition from the usual, gas/restaurants, they now hit the card with a $15 hold for telecommunication companies, going one step further than most. Normally, if you don’t use the card you can request a paper check however, Nissan in conjunction with Fidelity Information Services, also imposes a $15 processing fee. The solution, first complain to the # on the back of the card, get all company info including who the ee’s physically work for. Threaten to call your congressman, talk to a supervisor. Then go out and to the benefit from others above, buy a gift certificate for your favorite store for the complete rebate amount. You have the satisfaction that you used the entire card, don’t get embarrassed in a store with a decline or failed transactions, satisfaction that you wasted more time and money than the card is worth to the card issuer and if you feel so inclined voice your displeasure with the company that sent you the card in the first place. Follow up with your senators, elected officials, or attorney generals in your home state. Almost positive Senator Dodd and others have regulatory reform in the works. Take a page from Obama and call out the crooks by name. How far you choose to take it is up to you. For me, it’s principle. You don’t make your customer mad.
You can apply the gift card directly to your monthly ATT bill. Its easy. But I agree, it its the first time you are useing one of these its a pain. In the future you can cll into the number of the card and get the value of the card, then you can zero it out anywhere whith a smart cashier. Be advised that a cashier can not see the available value so they will not be able to zero it out without you knowing the cards exact value. PS, leftover Jc
DID you activate it before using it?? Cause I went to use it and the guy was like did you activate it and i was like no!!! So yea you have to call and activate it first!!
I tired to use two of my cards last night at a restaurant (which I activated one of them and checked the balance on the other right before I went out) – of course it was DECLINED twice. Why? I called the number on the back of the card this morning and was told that VISA holds 20 percent at restaurants for a “TIP”. Well, I always pay cash tips. Visa doesn’t care – they still hold 20% for tips. But, if I use them at TARGET, there supposedly is no problem. I don’t intend on letting these card expire. I HATE “promotion cards”. I bought four cell phones and got 4 $50 PROMOTION CARDS. I think this whole thing is a rip off – ATT just hopes people get frustrated and give up – then AT&T gets more money in their pockets. Next time, I will demand a check or ask to have AT&T take the rebate amount off of my very expensive bill.
Called my bank Wells Fargo and they will give me back total of Reward Card. Havent used it yet.
If its a visa card the bank will do it. I never have seen such a pain to get money…
This is no rip off, we just got two more $50 cards, we applied them to our ATT bill.
Done – Simple – EZ.