What to do when giving or getting gift cards

We've kicked off the holiday season with our public education campaign about gift cards. Why gift cards? For one thing, unredeemed gift cards can be easy money for retailers and lost money for consumers. TowerGroup estimates that nearly $8 billion was lost last year due to unredeemed value, expiration or loss of gift cards.

“It’s easy to understand the appeal of gift cards. They’re the perfect no-muss, no-fuss gift for the finicky family member or friend. It’s a no-brainer,” says Tod Marks, a CR senior editor. “But gift-givers and recipients alike need to be aware of the pitfalls and make sure that precautions are taken so that the recipient gets the gift and not the retailers.” With that in mind, here are a few tips from the editors of the Consumer Reports Money Adviser newsletter:

IF YOU'RE GIVING A GIFT CARD:

• Think twice about bank cards. While bank cards generally can be used at more retailers than store cards, they're often loaded with fees and restrictions. If you must give a bank card, find one that doesn't charge maintenance fees until at least a year after the card is issued.
• Check the merchant's prices. It's annoying to get a $25 gift card for a store that sells little at that price. When selecting a store-issued card, find out how much things generally cost and get a card with at least that value.
• Send along the receipt. Some issuers require the original receipt to replace a lost, stolen, or damaged card.

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Comments

[Ben Mathews]

If you are not going to give an actual gift, why not give cash? It has none of the problems with gift cards, no fees or expiration date. I have given cash to recipients far away with instructions what it is to be spent for. This eliminates shipping in the cases when I have a gift in mind.

[stan bziukiewicz]

Gift cards are an easy way to satisfy that someone who is always complaining about their gifts for the holidays. Its the wrong color,size etc.... Remember that tie or pair of argyle socks that you received last Christmas?