In recent years, Gift Cards have become a gift of choice for many people. But do you know whether the card you gave is being used. Consumer Reports estimates that in 2006, 8 million dollars worth of gift cards went unclaimed.
One retailer, Best Buy, declared in their 2006 annual report that 43 million dollars were gain from gift cards. They believe that these are unlikely to be ever used.
On this same Consumer Reports survey of 1, 500 adults, 27% of those who received gift cards had not used one or more that they had received. Among the reasons was; they forgot they had them, lost them or that the cards had expired. Some even reported that the reason was they couldn’t find anything they wished to purchase where the card could be used.
Here are 6 things to consider about gift cards:
1) It is estimate that as much as $ 25 million will be given through gift cards this holiday season. In 2006 $ 18 Million was spent.
2) When buying a Gift Card it is best to buy from a known and trusted source. Some online auction sites may have cards that are counterfeit or have been obtained illegally.
3) Inspect the card before purchase. Make certain that any protective stickers or scratched off areas are intact.
4) Ask about any fees and whether it has an expiration date. Fees could be any thing from a small purchase/activation fee for the buyer to monthly service fees for the user. Understand any term and conditions that the card may have.
5) When giving the card you will also want to give to them any information as it relates to Terms and Conditions and fees. One type of condition could have it that certain things can not be purchased with the card.
6) When you receive the card, treat it as if it’s cash.
More information about Gift Cards can be found at the Federal Trade Commission website: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt010.pdf
Information for The Consumer Reports can be found at ConsumerReports.org
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