Gift Cards ? Everything You Need To Know

For those who need help completing their holiday or special occasion shopping on time, there is a convenient alternative to consider. Gift cards make great stocking stuffers for Christmas and also convey your love, good tidings or best wishes when you are unable to purchase a physical gift. Though some people decry the impersonality of a gift card, they do have the distinct advantage of empowering loved ones and friends to choose the items they desire or like the most.

Before Buying a Gift Card

While purchasing and giving a gift card may seem easy, there is a wide-range of factors that could make or break the success of this transaction. Below are a few considerations to pay attention to when selecting gift cards:

1) Gift Card Starting Point: After you?ve decided to purchase a gift card, you should think long and hard about the individual that the card is for. The value and type of card should match the style, character and tastes of the recipient. One of the reasons retailers like gift cards is that users often buy more than the gift card?s value, so make sure you activate the card with enough value to buy a decent present.

2) Type of Gift Card: There are two main types of gift cards to choose from: store-specific or general-purpose. The purchase of a store-specific gift card is a more personal, heartfelt approach because it says, ?Hey, I know what you like and where you like to shop!? Does Aunt Vera have a sweet tooth? Select a gourmet chocolate gift card from the likes of Ghirardelli or Fanny Farmer. Is your nephew very picky when it comes to clothes? Choose a gift card he can use at his favorite store located within a specific mall.

With a general-purpose gift card, the recipient can use the monetary allowance to purchase whatever they wish, wherever a credit card like Visa, MasterCard or American Express is accepted. Before buying, be sure to ask about exceptions or restrictions on the use of the card. For example, you probably won?t be able to purchase an airline ticket with a general-purpose gift card.

3) Read the Fine Print: When giving a gift card, never ignore the fine print. Unreasonable service fees or activation fees, as well as shipping and handling charges, certainly put a damper on giving or receiving this type of present. Generally speaking, store-specific gift cards have fewer fees than general-purpose cards from companies like Mastercard or Visa.

4) Internet vs. Store Gift Cards: While some gift cards permit you to make purchases from both local and online stores, many do not. Before buying a gift card, ask about how it can be used, and think about who this present is for. What type of card would they be most likely to use? Do they spend a lot of time surfing the Internet and feel comfortable ordering online? Or would they rather visit a store in their neighborhood? Be sure to buy a gift card that matches.

5) E-Gift Cards or Certificates: When time is of the essence, you can often purchase a gift certificate at an online retailer and have it emailed directly to the recipient. The emails contain a verification code of some sort that must be entered into an online order form when a purchase in made in order to activate the gift. Such ?e-gift? cards are certainly convenient but since they almost invariably must be redeemed online, keep that in mind before buying.

5) Gift Card Scams: It is possible for gift cards to be tampered with, and it?s amazing how ingenious thieves can be. For example, in one con, thieves make note of the identifying information displayed on gift cards being offered for sale, then periodically call to check if they’ve been activated. When they are, they use the order code/PINS to shop online, thereby draining these cards of value before you get them. Protect yourself by examining both sides of cards yourself before purchase, keeping an eye out for signs of tampering and/or the exposure of the cards’ PINs. Immediately after buying a gift card in a store, ask the cashier to scan the card itself to ensure the plastic you bought is valid and bears the proper value. (This will protect you against the card’s having been swapped out of its packaging for a zero-balance one.) Never buy them from auction sites ? according to the National Retail Federation, many of these cards are stolen or counterfeit.

Using a Gift Card

If you have received a gift card, the first thing you should do is familiarize yourself with the ins and outs of your present. Knowing the details and limitations of the card will allow you to make the most of your purchases, as well as avoid unnecessary deductions from your funds.

1) Expiration Date: Some gift cards expire within six months to a year, while others a bit longer. You should check for an expiration date on your card to avoid a loss of funds. Once you exceed the expiration date, you will no longer be able to use the gift card. This limitation can be found either on the front or back of your card and often requires reading the small print.

2) Monthly Fees: Depending on the gift card you have received, you might get zapped with a monthly fee for ?maintenance.? It could be less than a dollar or more, but depending on the original or remaining amount, this may prompt you to act quickly when making purchases for fear of losing a chunk of your gift.

3) Gift Card Balance: Checking your gift card balance is as easy as calling a toll-free number or reviewing your account online. This is a great way to keep track of what you?ve spent and what you have left. Depending on the amount of money left on your gift card, you may have to carry extra cash when shopping, in case you see an item that exceeds your remaining balance.

4) Unwanted Cards: If it so happens that you get a gift card from a store you don?t like, it is possible to trade cards at several places online. For example, at and, you can trade gift cards at equal face value for a small fee. Just do so quickly, before any fees are assessed to your card.

Buying gift cards is certainly convenient for you, and are usually welcomed by others ? but taking the few simple precautions in this article can truly maximize their value.

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