Store gift cards — good only for a particular retailer — tend not have such fees. You pay $25 for the card, and the recipient has $25 worth of store credit to enjoy.

Why does it cost $4 to activate a gift card? Carol Powell, 67, posed that question to me after being told by a Target cashier about the cost for getting a $25 prepaid card up and running. Powell ...

“The activation fee is charged by Visa,” she said. Not so fast, a Visa spokesman told me. “Visa does not set gift-card fees, nor do we receive any portion of those fees,” said Paul Cohen.

Why does it cost $4 to activate a gift card? Carol Powell, 67, posed that question to me after being told by a Target cashier about the cost for getting a $25 prepaid card up and running. Powell ...