What you need to know about giving (and receiving) gift cards
Like nearly 80% of consumers polled in a recent survey by the
The National Retail Federation, I am planning on giving at least one gift card this Christmas. Gift card sales this year will total nearly $25 billion, up $6 billion over last year. They are huge business, and consumers and retailers both love them.
Gift cards are convenient, they show that I know what the recipient’s interests are, and they allow the person to choose exactly what they want. Since 14 year olds are nearly impossible to buy for, we will give our nephew an iTunes gift card.
The brothers-in-law will get a card from Cabela’s. I always give the card along with a little something – the iTunes card will come in an iPod “sweater,” and the Cabela’s card might come with a hunting cap. We will receive gift cards ourselves, which we appreciate. I usually wait until the after-Christmas sales to use them, so I get more for the “money.”
There are a few things to keep in mind when purchasing gift cards.
The NRF suggests:
• Only buy gift cards directly from the retailer. Many cards sold in online auctions are counterfeit, or may have been stolen.
• Keep the original receipt. This is in case your friend or family member has trouble redeeming the card for any reason. Retailers may also be able to replace a lost card when presented with the original receipt.
• Consider service fees and expiration dates. Retailer’s cards don’t usually incur either, as opposed to mall- or bank-issued gift cards.
• Tell your recipients – use the card! Some states have an “abandoned property” law, which allows some states to reclaim the unused value on a card. According to the NRF, “Like bank accounts and other personal property, gift cards that go unused or unredeemed for more that a few years are often treated as “abandoned” property by states. Where these laws apply, sometimes in as little as 2-3 years, retailers are required to turn over unused gift card dollars to state governments under the guise of returning the ‘abandoned’ money to the gift card purchaser. In fact, states make millions of dollars a year from these clauses.”
Gift cards are great for giving and receiving. Just keep these simple tips in mind.
iTunes, Cabelas, Gift Cards, NRF
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