A newly-released survey by a credit-card company reports that gift cards are expected to be the fourth-most-popular gift this year, trailing only clothing, toys and games, and music. According to the survey, 57 percent of consumers say they plan to purchase a gift card during the holidays.
While gift cards can be the easy solution to the common dilemma of shopping for someone who is difficult to buy for, some consumer authorities say theyre not without their drawbacks.
Some gift cards carry expiration dates or maintenance fees, which allow a retailer to reduce their value if they go unused for a certain period of time, said Arkansas Attorney General Mike Beebe.
Gift cards have become popular enough that consumers can comparison shop to ensure that they get full value for their holiday spending.
There are several questions every gift card giver and recipient should ask:
• When does the gift card expire?
Is your gift card good for six months? A year? Even longer? Be sure to check.
• Is there a service fee?
Gift cards purchased by phone or online often charge service fees. Service fees range from $3.95 all the way up to $11.95.
• Are there added incentives?
Some retailers offer additional value for gift cards redeemed during a specific time frame or used for certain purchases.
• Is there a monthly maintenance fee?
Some gift cards will charge you a monthly maintenance fee if you still have a balance on your card after six months or a year.
• Is there a fee for canceling?
Ask if there is a closure fee for canceling the card. Some companies charge as much as $15 to cancel a card.
• And of course, always read the fine print.
