The most popular gift is also one of the worst
»Play Video
If an annual holiday trend holds true, there's a 50-50 chance you'll buy one of most popular gifts sold this time of year -- a gift card. Unfortunately, it will not be a winner.
Don't get me wrong, gift cards can be the perfect solution. But this practical plastic rings up billions of dollars in profits for retailers and restaurants when the cards go unredeemed. Just check out some of the numbers being thrown around this year: estimated gift card sales are$ 28.8 billion. The value of cards that will not be redeemed: $2 billion left on the table. By some estimates, the number will be more than three times that amount. The average American household is said to be sitting on $300 worth of unused gift cards right now.
On the bright side, thanks to better consumer protection laws, many of those cards are still valid and most if not all of the money is still there. New regulations have eliminated many fees, so you can't be charged if you don't use the card in the first year. But here's the catch, the gift card value can still be eaten up in activation fees and dormancy charges depending on what type of gift card you're dealing with.
To avoid getting caught in the gift card trap, remember three key factors. Retail gift cards are the best value because they have the lowest fees. All purpose cards, the ones offered by banks and credit card companies, are the worst value, they have the highest fees, and if you buy a gift card from a company that goes out of business later, you're out of luck, that card is worthless.
Before you decide to give a gift card, make sure it's something your friend or family member really wants. And then, remind them to use it right away. Otherwise, you're better off giving an actual gift with a gift receipt so they'll have something to show for your money.
There are other points to remember, too. By law in this state, retail gift cards cannot expire unless they're part of a promotional giveaway, or charity fundraiser. Also by law here, you're entitled to cash back if the balance drops below $5.
And for gift cards you won't use, consider selling them. There are at least a dozen websites that offer cash or gift card swaps -- minus a fee. Just keep in mind you have to mail in the gift card, so it's important to do your homework. Compare the different websites, their policies and the prices they'll offer you and be sure to check for customer complaints and reviews.
The links below can help you get started but should not be taken as an endorsement:
plasticjungle.com
cardpool.com
giftcardrescue.com
abcgiftcards.com
giftcardgranny.com
coupontrade.com
giftcardexchange.com
I think gift cards are not necessarily the "lazy way out." I get my friend Starbucks gift cards because it's her favorite coffee shop - yeah, I could give her money, but I know she's going to use it there, so why not get her a cute card? There are many stores that gift cards are great presents - my Mom had a great time spending her gift card at Michael's. I knew she loved the store, but SHE knows better than anyone what kind of yarn she wants. :o) Just buy smart and it won't go to waste.
If you don't know a person well enough to know what they want for christmas and have to resort to cash/giftcards then you don't need to b buying them a gift anyway
I give cash to my nieces and nephews, but I put it in with an ornament I have picked out just for them.
Give me cash over a gift card any day!
Instead of a gift card I prefer giving cash. Taken everywhere, always fits, always the right color and always the right size.
@BlueJedi I'd happily take cash over a gift card anyday. Then I am not limited to the one place where the gift card is accepted and I can get myself whatever I want! (Or put it towards my bills which makes me just as happy as getting myself something!)
I view gift cards in the same "catagory" as cash and checks - someone did not want to bother going to the actual trouble of buying a gift, they want me to do the work for them. It's an easy out. Sometimes they ARE appropriate - if a company is giving a "gift" to their employees (although one year oue employer gave us all gift certificates to a company that went out of business the following month..) as an example, but they are not a "real gift" - they take no time, no effort, no thought.
 @LocalLady Our children give their dad a gift card every year for his birthday & Christmas. It isn't because they are lazy, but when a person is really "into" fishing, hunting, etc., who know exactly what they want or need. The kids get Cabela's gift cards, & he goes and gets what he needs or wants to pursue his passion for fishing, Win win all around.
 @doxiemom2008  @LocalLady what a cute wiener, I love the little wiener dogs
If someone can't find anything in the entire store on which to spend the gift card, it's highly unlikely they'll like the one gift you've picked out for them.Â
Same holds for a gift receipt: if they haven't been motivated enough to go and shop with the card after a year or two, the gift receipt will be long expired and just as worthless.Â
Â
And unless something's changed, they can't charge fees in this state unless and until there are 24 consecutive months of non-activity. Even a refund or a simple balance inquiry counts as activity qualifying to reset the 24-month clock back at zero.Â