Getting The Most Out Of Gift Cards
Gift cards have become a staple of the holiday season, with millions of gift cards purchased and given each year. Instead of worrying that the recipient will not like the gift that was picked out for them, these gift cards allow the giver to control the amount spent on the gift while giving the recipient some flexibility in what they receive. These gift cards can be a great way to allow someone to choose the gift that they would prefer and it is important that both the giver and the receiver understand the best ways of using the gift cards to get the most value out of the gift cards.
Look For Hidden Fees Before Purchasing
Some store gift cards are loaded with hidden fees that reduce the total purchasing power of the gift card. These fees may include activation fees, physical card fees, or other fees deemed necessary by the card issuer. While these fees are not typically disclosed on the front of the gift card, they should be included in the terms and conditions of the gift card per the disclosure laws in effect for these products. If there are initial fees for the gift card, you may be paying $50 for a gift card that only has $40 of purchasing power.
Use The Entire Amount
One of the biggest mistakes made by individuals redeeming gift cards is to choose an item that is slightly under the price limit of the gift card in order to avoid paying anything for the item. This is the equivalent of giving free money to the retailer because, chances are, the person will never go back to the retailer to redeem the last few dollars on the gift card allowing the retailer to keep the money without having to give up merchandise in return. The best way to get the full value of a gift card is to use the entire amount and pay the few dollars extra for the sales tax.
Pay Attention To Expiration Dates
A few gift card issuers place expiration dates on their gift cards and after this date, the remaining balance on the gift card can no longer be spent. Although many people use their gift cards within a short period of time of receiving them, people that need more time to decide on their purchase may find that the expiration date has passed and their card is no longer valid, allowing the issuer to keep both the money and the merchandise and leaving the gift card recipient with nothing.
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