December 26, 2007
Chances are, when you opened your presents this year there was at least one gift card. The National Retail Federation projected the average consumer would spend $123 on gift cards this year.
If you got one, dont let it gather dust, experts advise.
A study conducted earlier this year for Consumer Reports found that 27 percent of gift card recipients have not used one or more of the cards, up from 19 percent at the same time last year. And among consumers with unredeemed cards from last season, 51 percent have 2 or more.
When cards are not used, the value can sometimes decline, due to fees and other charges, making the cards a bigger gift for the retailers than the recipient.
Its easy to understand the appeal of gift cards. Theyre the perfect no-muss, no-fuss gift for the finicky family member or friend. Its a no-brainer... said Todd Marks, senior editor at Consumer Reports.
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, he said.
Marks suggests spending the gift card quickly, as some carry an expiration date. Some even have a maintenance fee.
Also, spend it to the last penny. If the card balance gets so low that theres nothing to buy, ask a merchant to do a split-tender transaction. That involves using the remaining card balance for part of the transaction and another form of payment for the rest.
One the entire balance has been spent, dont throw the card away just yet. Some merchants require it for returns.
