Gift cards have topped the list of most requested presents
for five years running, but some recipients inevitably end up
disappointed. Whether you have a collection of unwanted cards you're
looking to
unload or just haven't decided what you want to buy, use these tips to
get the most from your holiday gift cards.
1. Review Details
Despite new federal regulations for gift cards resulting from the Credit
CARD Act, retailers are finding their way around the rules. A
recent article
in Canadian
Business points out bank-issued gift cards from MasterCard and VISA
often include additional purchase fees on top of the balance of the
card. Other cards included as a bonus with your purchase are actually
treated more like coupons, with short expiration dates or
product restrictions. Before you stick these away in your wallet, read
up on the rules and regulations.
2. Follow the News
With the economy still struggling, businesses come just as quickly as
they go. If you have a gift card for a store that's struggling to
stay afloat, it's smart to use it up as quickly as possible. Once they
go under, you'll lose out on the entire balance.
3. Sell or Exchange Unwanted Cards
There's no mystery when it comes to gift cards; you either like them or
you don't. If your plastic haul falls on the "don't" side, there's
still hope for getting something out of them. Gift Card Exchange Day
-- a one day event
created to raise consumer awareness about exchanging gift cards for cash
-- is set to take place on Dec. 26. Just enter the store name and
gift card amount to receive instant bids from resellers wanting to
purchase your card.
4. Consider Regifting
Do you have family or friends with a post-Christmas birthday or perhaps
an upcoming wedding or baby shower? Unwanted gift cards make quality
presents at no cost. Just make sure such holiday gift cards don't
feature a season-specific design when gifting for another celebration.
5. Get Registered
Once you've decided you're going to use your gift card, get it
registered. Call the issuers' customer service department and provide
your
name and address with the card's unique account number and PIN. If the
card is lost or stolen you're able to get the balance credited back
on a new card.
6. Keep It Close
Though gift cards work like cash, they certainly don't get the same
treatment. Cash is closely guarded and meticulously monitored while
gift cards get tossed into the sock drawer. If you'd tuck a $20 bill
into your wallet as soon as you got it, why wouldn't you do the same
with a gift card? To ensure they're around whenever you need them, put
them in a secure place such as your purse, wallet or car. That way
you have your gift card ready for unexpected purchases and you don't
have to use cash or credit.
7. Shop Smarter
In a surprising find, Wall Street Journal's SmartMoney
discovered gift card recipients typically spend 140 percent of the
card's face value during their redemption trip. This indicates shoppers
don't spend as carefully as they would when using cash or a credit card.
If you spend just to spend, take more time to weigh your gift card
purchases. Also, use gift cards for stores like Walmart or Target on
household items and boost your budget for a few months.
8. Make a Donation
Unwanted cards can be donated. Many organizations such as Make-A-Wish
Foundation accept donations of gift cards that are used toward
granting wishes. If smaller, local charities don't accept them, use your
card to buy items like food and clothing you know they'll take.
It's best to donate directly instead of through a third-party site so
you know the money got there and you're guaranteed a tax deduction.
9. Keep Up with Balances
To avoid leaving partial balances unredeemed, keep notes about how much
you've used and store balance receipts along with the card. You
can also check your balance on such sites as GiftCardGranny.com
if it's
been a while since you last used the card. In some states you can even
request a cash refund when the balance falls under a certain amount.
Currently the minimum is $10 in California and $5 in a handful of other
states.
10. Start a Portfolio
This year the investment site, GoalMine,
is
taking a unique approach to gift cards. From Dec. 19 through the end of
January they'll sell your cards and deposit the value into a
FDIC-insured savings account or one of their mutual funds. Instead of
filling your cart up with candy bars to spend the last of your store
credit, get a college fund going for the kids.
11. Recycle
Several companies such as Target, REI and Walmart began using bioplastic
gift cards made with a corn-based material that will biodegrade in
a regular compost bin. Though some gift cards aren't biodegradable, you
can mail them to
Earthworks System, a PVC recycling company that began accepting gift cards
for recycling last January.
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Andrea Woroch is a consumer and money-saving expert for Kinoli Inc. She
is available for in-studio, satellite or skype interviews and to
write guest posts or articles. As a nationally recognized media source,
Andrea has been featured among top news outlets such as Good Morning America, NBC's Today, MSNBC, New York Times, Kiplinger Personal Finance, CNNMoney and many more.
For all media inquiries, please contact Andrea Woroch at 970-672-6085 or email andrea@kinoliinc.com.