Making the Most of Gift Cards

In recent years, gift cards have become a popular present among gift-givers. The National Retail Federation (NRF) estimates that gift card sales will total $26.3 billion this holiday season. Here are some ideas to keep in mind when using or purchasing gift cards.
 
Read the fine print before you buy
 
Although NRF reports that 92 percent of the nation's top retailers have no expiration date or dormancy fees associated with their gift cards, it is still wise to read the fine print. Gift cards from credit card issuers such as VISA, Mastercard, and American Express are more likely to expire and tack on fees for activation, maintenance, and inactivity. This information may appear on the card itself, on the accompanying sleeve or envelope, or on the issuer's web site.
 
Report your card lost or stolen
 
If your card is lost or stolen, report it to the issuer immediately. Some issuers will not replace the cards, but others will replace them for a fee. According to the National Retail Federation, improved technology has allowed some retailers to reissue lost gift cards if consumers have the original purchase receipt. Some stores also encourage gift card recipients to register their cards online so they can check their balance and receive a new card in the event that their gift card is lost or stolen.
 
Get cash for your gift cards
 
You may receive a store gift card as a present that you know that you will probably not use. In this case, you may consider getting cash for your gift cards at sites such as Plastic Jungle and Swap A Gift. These web sites allow you to redeem some gift cards for a percentage of the card's balance. Visit each site for specific details. You also have the option of trading your gift cards with other web site users.
 
Use your gift card wisely. If you received a gift card as a present, redeem it when you really need something. Don't purchase something in the first week just because you have "free money." For example, if you received a grocery store gift card, save it for when you are short on food money. A gas station gift card may come in handy when you have to travel a lot during a particular week. Discover ways in which your gift card can help you save money on necessary living expenses.
 
Watch out for scams. The National Retail Federation advises consumers to only purchase gift cards through reputable retailers and to be leery of cards sold on online auction sites. Many of those gift cards are counterfeit or obtained through fraudulent means.
 
Giving gift cards may be more costly. You may think it is quick and convenient to buy primarily gift cards to give as presents. However, according to Bankrate.com, going overboard with gift cards could be a budget buster because you must purchase the amount of the card. You may be able to buy a more personalized gift for less money. For example, if a store is having a 20% off sale, you could save money on a $50 sweater instead of buying a $50 gift card.