That isn’t a scam, it is how the companies that produce the gift cards make a profit. They don’t exist to do things out of the kindness of their heart.
But all the other cards we saw didn't charge anything UPFRONT that we could see. ( Red lobster, TGIF, Bass Pro etc.) We did not see the "FINE PRINT" till we read the ticket on the way home.
Never gonna buy one again!
True, but the profit is that you give that card to someone who would not have otherwise spent money in your store. So you're getting the $50 up front to begin with -- and if the gift card gets lost or goes unused, it's pure profit.
So fees like this shouldn't be necessary.