Save money and time by giving gift cards and gift certificates. Learn how to prevent your generous spirit from turning into a financial nightmare during the holidays.
Gift cards are easy. No foraging through the mall searching for that perfect gift, and you avoid shipping charges completely. But they’re not without problems. Following are tips to make giving gift cards a hassle-free experience:
- What if a gift card is lost or stolen? When you give someone a gift card include the receipt. Also ask the recipient to keep that receipt in another location. And write down the card’s identification number (usually located on the back of the card.) That way you can contact the store where it was purchased for a replacement. Every merchant works differently. But as long as you have your receipt and ID number, the store should issue you a new card if it is lost or stolen. Most importantly, keep the card in a safe place and treat it like cash.
- If you spend less than the gift card is worth, can you receive cash back? Possibly, but it’s up to the card issuer. If, say your card has a balance of $20 and you only spend $15, the store may give you five dollars back in cash or just leave the balance on the card as credit. Be careful: If the card issuer does give you cash back, they might charge a fee.
- Is it free to reload the card? Not always. Before you spend money to put more credit on the card, ask the store whether there is a fee involved.
- Do cards have an expiration date? Sometimes yes, sometimes no. That’s why you need to read the fine print whether you give a gift card or receive one.
- Is it safe to buy gift cards online? Yes. There are two ways of transmission. The card issuer can either e-mail a certificate to the recipient or send it in the mail. If you decide to allow the merchant to e-mail a gift certificate to someone else, make sure you alert that person that the gift certificate is coming. Otherwise, your good intentions may be treated as junk mail! Probably the best way to a purchase a gift card online is to have it mailed directly to you. Then you can either hand-deliver or mail the gift card with a return receipt from the post office.
Gift cards are usually hassle free, but if you want to give more personalized presents this holiday season and save money, consider home-made gifts!
Related articles:
Avoid debit card problems.
Take advantage of double coupons.
When you’re trying to lose those extra holiday pounds, learn how to successfully negotiate a gym membership.
Sources: United States Office of Thrift Supervision News Letter, February 2007, Federal Trade Commission
