The Gift Card Conundrum
The current economy has created new questions for those who have traditionally purchased gift cards as part of their holiday gifts. In past years, I’ve given gift cards to my teenage niece so she can enjoy shopping for herself at her favorite store, not to mention the many cards I’ve received over the years for my favorite bookstore. Those little bits of plastic are nearly as much of a time-honored holiday tradition as cookies for Santa in many a family.
But with the number of stores that have declared bankruptcy in recent weeks, buying store-branded gift cards may have new risks. If the store suddenly closes, your “cash” card becomes worthless. You have to watch carefully to be sure that the cards you give, and those you’ve received, are not for stores that are watching the doomsday clock tick away the minutes to the end of their existence.
Other options exist, of course. You can go traditional and create a wish list of items you really want to share with friends and family, helping them with purchasing decisions. Online lists are especially helpful for those folks who live across the country or around the world, or for those who have trouble remembering or keeping up with paper lists. Amazon.com’s Wish List
If gift cards still seem like the right solution for you, look for ones that can be used at more than one store such as mall-branded cards or the credit card look-alikes from Visa or American Express. These may actually be a better choice in the end, not just due to store closings, but because of changing tastes and opportunities for great bargains. A $50 store card won’t do you a lot of good when another store in the mall is having a great sale on something you really like. But that mall gift card? Yep, that fits perfectly!
Be aware that, in spite of the marketing, gift cards are different from cash. Often they come with pamphlets of fine print that you never read. In that tiny type, it may say that there is a fee that will be deducted from the card after you’ve held it for a certain amount of time. Read the pamphlet, or ask when you purchase the card, and know when the fee kicks in. Write it down on the pamphlet or in the folder that comes with the card, along with the original value of the card. I typically put a sticky note right on the card to help me remember those details. As I spend down the card, I’ll keep track of its balance on the same note. Then, when it gets to zero, I keep the card until I’m sure that whatever I bought with it won’t have to be returned. (It’s a major pain to take something back only to find that the store’s policy is to return the value to the original card, and you no longer have it.)
As I said before, consumer be aware, and know exactly what you’re buying with gift cards. They are a fantastic gift, but they do have some quirks. Know what’s in the fine print, keep up with the stores that you have gift cards for or are considering buying cards for, and your holiday gift giving and receiving will be just as joyous as always.
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