Are Gift Cards A Worthwhile Gifting Option?

Gifting cards is a very good option. Gifting credit cards, phone cards, retail outlet cards and holiday cards has become very popular this holiday season, but just watch out! These cards carry a lot of charges that you may not be aware of when you purchase the card. Next time when you contemplate gifting a card to your loved ones understand the terms and conditions of its operation fully and then decide.

Just consider these situations. What if the gift card you’ve bought carries a monthly fee or has already expired? Do you know that the sale of gift cards reached $ 25 billion last year, according to a National Retailer’s Federation report? This year about 55 percent adults are expecting to be gifted cards. You’ll be surprised to know that 25 % adults who’ve been gifted cards last year have not redeemed them yet! Commonsense says that this year too the cards will gather dust. So why not go for another option rather than give the same thing when it has not been used before?

If you still think that a gift card is what you can gift best ask your loved one if he/she would use it and then gift it. But before you do, just read the fine print well. If it quotes a fee for most transactions, don’t buy it. You don’t want your loved one to shell down money from his/her pocket this financially lean season whenever he/she goes to redeem her gift(s), don’t you? If you want to gift a retail store card, make sure that the store is functioning and is financially hale and healthy to offer the card privileges to the holder. Otherwise, your friend will go to the store with the gifted card only to see that the offers have been closed. Now you want to save yourself the embarrassment of gifting a defunct card, don’t you? Always buy the card from a reliable retailer.

The people who receive gift cards can also do with some useful advice. Firstly, when you receive a gift card go ahead and redeem it. Why do you want to sit over it for months only to see that you are being charged a monthly fee or the card has expired? Read the terms and conditions carefully and go for the most profitable deals. Note down the gift card number so that in case you lose it you can notify to the police so that its not misused. Lost gift cards are not generally compensated for. Keep the card till you are fully satisfied with the purchase and decide to keep it with you permanently. If you have any issues with the card, contact the issuing authority and if that doesn’t help, the Federal trade Commission.

So that’s some advice for the gifting and the gifted. But on pondering upon why many people generally don’t redeem their cards, I feel the gift cards don’t actually serve their purpose. I’ve been offered a gift card last year that gives me a huge discount on a laptop. I really don’t need another laptop when I already have one with me. Also I’ve got to make a huge investment despite the gifted discount. This makes me wonder is gifting a gift card really worthwhile? Why not gift a greeting card instead?