Gift Cards – Common Sense Precautions If You Are Giving Them This Year

photo credit: laurenatclemson

Gift cards have really earned a bad rap this year. With many major retailers like Dillard’s closing locations and other retailers like Circuit City filing for bankruptcy, many consumers are afraid of ending up holding a gift card that they can’t use. Will the current economy’s craziness spell an end to the popularity of gift cards?

Let’s face it; sometimes, a gift card is the perfect gift. If you know your in-laws want a new washer and dryer, you can get them a gift card to an appliance retailer like Lowe’s or Best Buy to get them closer to their goal. If you know your little nephew loves video games, but you don’t know which one to get him, a gift card is a great option.

I believe that the flexibility that’s inherent in gift card giving will allow it to retain its position at the top of holiday purchases. However, if you plan to include gift cards in your holiday purchases this year, you and your gift recipients should take a couple of precautions:

Encourage your loved ones to use their gift cards quickly. Gift cards that are redeemed right away won’t fall victim to fees due to non-usage or run the risk of being devalued if the company suffers financial problems. Why not plan a shopping day with your recipient? He can enjoy choosing something special for himself, and you get to share in the excitement of seeing your gift being used.

Choose gift cards that will be user-friendly for the recipient. Ease of redemption and store flexibility are absolute must-haves in gift cards. Although you may love the little gift shop in your neighborhood, your sister who lives an hour away may not get the full benefit of a gift card from that store. For long distance gift-giving, select gift cards from stores that have locations nationwide. In addition, gift cards that can be used in retail locations, as well as on the web, are great choices.

Finally, when you are hard-pressed to find the right gift card you can always choose to give cash. I know; you’re thinking there’s nothing more generic than sticking cash into an envelope. But you don’t have to do it that way. Try creating your own “gift certificate” for something you know your loved one wants or needs. Then, glue an envelope to the back of the “gift certificate” to hold the cash. I tried this once for a friend who was in college by making a university book store “gift certificate” to help pay for her books; she loved it.

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