Can Gift Cards Make For A Happier Holidays?

Ah, the holidays, filled with masses buying tons to give and receive. Then, there is the gift card. It can be handy, can’t it?

According to Forbes, the gift card can cause more problems than they can help. To be sure, one must know the two different types of gift cards available to customers. Retailer gift cards are the kinds you get from stores and restaurants. Bank gift cards are the kinds with a Visa, MasterCard, American Express, or Discover on the card.

The benefit of a retailer card is that it can give people an opportunity to try an establishment they’ve never been to. This can also be a drawback. If you send a friend a Chili’s gift card and the Chili’s nearest your friend is over 4 hours away or more, chances are that gift card won’t be used. And that Chili’s gift card can’t be used anywhere else. Further, you cannot get the cash value of the gift card since you didn’t originally purchase the card in the first place.

Another issue with retailer cards is that some carry expiration dates. Even if they don’t, you would have up to five years to use the amount on the gift card. Make sure by reading the fine print.

The benefit of a bank gift card is that they can be used anywhere that has the accompanying logo for Visa, MasterCard, American Express, and Discover. These may carry expiration dates, but rarely do. Though more universal, the bank gift card may come with fees. Again, check the fine print if a gift card you’re interested in charges for lack of use, and what that fee is. And, as with retailer cards, if lost or stolen, the company does not have to reimburse you or give you another card. In most cases, they will charge you to replace a lost or stolen card.

So, what good are gift cards? Tech Times is reporting if properly given and used, both giver and receiver will be happy. First, don’t over-specify the gift card’s purpose. Research at the University of Cincinnati have shown this to be correct, especially in a romantic relationship. The giver wants to give something personal, while the recipient would like to choose something more versatile.

Next, always check the fine print to see if there are any charges that may diminish the value of the gift card. Don’t choose a gift card that has an imprinted expiration date. Make sure you give the gift card recipient a copy of the original receipt, in case of a discrepancy with the amount left on the card. Finally, stay with established corporations when you get gift cards. You’ll want to make sure they are around for a while.

Remember this one sobering thought about gift cards. It’s a $32 billion industry, but at least $1 billion was left unused. This is just giving these corporations money for nothing in return. Make sure that whatever gift card you give, it will be used.

You could always send a check, a money order, or cash. That’s up to you, however.

[Image courtesy of Ag Beat]