How to Buy, Give, and Receive Gift Cards

If you're like me, you probably have a handful of people on your holiday list that are hard to buy for. They have everything, don't need/want anything, or some combination of these two. So, what do you do?

I used to buy a throw-away gift -- something I thought they would like, but I never really knew if it was a good choice or not. Now, instead of doing this, I buy them a gift card and let them pick a gift I know they will like. About 35% of my Christmas spending is now on gift cards.

Here's a piece from USA Today that gives the ins and out of gift card buying and receiving. They start by giving some numbers on the popularity of gift cards:

Gift cards are easy to buy; they don't need to be wrapped; and they always fit. Americans spent more than $18 billion on gift cards last year, and nobody got hurt. The National Retail Federation estimates that consumers will spend nearly $25 billion on gift cards this holiday season.

I forgot to mention above that gift cards are GREAT presents for people far away -- much easier (and less expensive) to mail than a "regular" present.

But all is not rosy in gift card land. A few of the downsides:

Some cards expire in as little as six months. Others come with inactivity fees that reduce the value of the card if it's not used within a specific period.

And while most Americans say they like receiving gift cards, a lot of those cards are gathering dust. About 19% of Americans surveyed by Consumer Reports said they still haven't used gift cards they received during last year's holiday season. TowerGroup, a consulting firm, estimates that consumers lose nearly $8 billion every year because of unredeemed, lost or expired gift cards.

Yikes!

So, how can you get the most out of the gift cards you give? Here is USA Today's list:

• Consider buying a gift card from a retailer instead of one from a credit card issuer or bank.
• Choose an amount that's appropriate for the retailer.
• Pay attention to how gift cards can be used.

I pretty much use these tips. I mostly buy gift cards from bookstores in the $25 range. They're from the retailer, for an appropriate amount based on the store, and can be used on anything in the place. Easy to buy and easy to use.

The piece then lists what to do to make the most of gift cards you receive. Their thoughts:

• Avoid unpleasant surprises by reviewing the restrictions, particularly those for bank-issued cards.
• Use your gift card as soon as possible.

Generally, if you do the latter, the former isn't an issue.

I generally try to spend my cards as soon as possible. As the piece says, January is full of sales and you can get some really great deals, so why not use your card then?

If for some reason I can't use the card soon or if I get one other than at the holidays, I track my use of them on my Palm -- making sure I use every last penny of each of them. They are, after all, just like cash, and I wouldn't throw away a dollar or two (or worse -- five or ten dollars) and don't plan on wasting any part of a gift card either.

Comments

[Mike]

Why not just give cash?

[fivecentnickel.com]

Hahaha. Good for you. Tell it like it is.