We’ve heard some reports today of issues of customers trying to use Best Buy gift cards to pick up the Google Nexus S handset. Apparently a $600 gift card can be used to purchase a major home appliance, a new computer or even be returned for your money back, but if you try to use it to get yourself one of these new handsets you are greeted with the idea that the card is somehow fraudulent.

Google Nexus SWe were informed today of a customer who attempted to purchase a Google Nexus S handset with a $600 gift card from a Best Buy Mobile location, but he was told that he couldn’t due to the fact that there is a high rate of fraud associated with them. He requested that they verify the card, but they said he would need to speak with corporate. After attempting with a few more employees at that location he gave up on called the offices as he was told.

After 45 minutes on hold, and hopping through more employees, a supervisor told him that he could purchase a host of other items with the card, which she was able to verify as a legitimate card when provided with the numbers from the back, but it was up to each store on using it towards a phone.  Once he heard it was up to each store, he called more Best Buy locations, and while each said he could indeed use the card, all of them were sold out of the hot new Android device.

The reason this story is peculiar to us is that somehow the card was acceptable for other major purchases, and even a refund, but it somehow becomes suspicious when you try to buy a phone?  Does that make sense to any one?

With the holiday gift giving season upon us, and gift cards flying left and right, it is definitely something to keep in mind for those both giving and receiving the popular payment methods.