Gift Cards are the new Fruit Cakes....

Papa Deuce

<font color="red">BBQ loving, fantasy football pla
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per www.msn.com

It's the time of year when we like to focus on the good news, and mine is this: Gift cards are on the wane.

A new TowerGroup report predicts gift card purchases will drop to $87 billion this year, from $91 billion in 2008. Spending on store-branded gift cards is expected to fall 7%, while spending on general-purpose cards likely will rise a mere 3%.

TowerGroup's predictions, plus a Consumer Reports poll showing only 15% of adults want gift cards and 25% hadn't used a card from last year, led MediaPost's Marketing Daily to label gift cards as the new fruitcake.


We can blame the economy, rather than a sudden mass realization that gift cards aren't real gifts, for plasticized cash's diminished popularity. But people also might be getting wise to gift cards' many drawbacks, including:

* The possibility of total loss. Any store-branded card can become worthless if the retailer goes out of business. An estimated $100 million in card value vanished with the 2008 bankruptcies of Sharper Image, Linens 'n Things and other retailers, TowerGroup said.

* The probability of waste. The amount lost to bankruptcies pales next to the amount that will never be redeemed. A whopping $5 billion of the money spent on gift cards this year won't get used, TowerGroup estimated. This is a big reason retailers and banks push gift cards with such enthusiasm -- that and the fact that most people who do redeem their cards (65%, according to the Consumer Reports poll) wind up spending more than the cards' value.

* Fees, fees and more fees. General-purpose cards -- gift cards issued by credit card companies -- typically cost $2 to $4 to purchase and then involve additional charges (typically $2.50 a month) after 12 months of inactivity. You might face fees for shipping, checking a balance or replacing a defective or lost card.

* Expiration dates. This is more of a problem for cards issued by smaller retailers, since major retailers tend not to impose expiration dates and the "valid through" dates on general-purpose cards refer only to the expected life of the magnetic strip, not the expiration of any balances on the card, according to a Bankrate.com survey. Several states ban or limit expiration dates, but in other states cards can expire in as little as six months. In most states, cards can still lose all value because of inactivity and maintenance fees.

* Limits on use. CVS gift cards, for example, can't be used online. American Airlines gift cards can be used only online or when you're making phone reservations. They're not valid at airport ticket counters or when you're booking through travel agents.

* The last few dollars might get trapped on the card. Some retailers won't let you use a card unless the remaining balance is enough to cover your entire purchase. They won't let you split a purchase between the card and some other form of payment.

This last one ought to be illegal....
 
Wow. I love getting gift cards. Luckily, California has some laws in place to protect them. Gift cards cannot expire and retailers cannot charge "maintenance fees" on cards. If the store goes out of business, you are out of luck. But I've held onto cards for over a year before using them and the original balance is always intact. Also, if your card has a remaining balance of $10 or less, the retailer is required to give it to you in cash, upon request. That law only applies if the original card balance was more than $10.
Of course, none of these laws apply to debit cards, like Visa Debit Cards. Those can start to lose their balance after a few months so if I get one of those, I used it quickly.

We've received gift cards from relatives in Colorado and, of course, none of our laws apply because the cards weren't purchased in California. We have to be sure to use those up quickly, too. But we feel pretty comfortable buying and giving gift cards here because we know they're a relatively safe investment.
 

Bollocks. Gift cards are my favorite gift.
 
I love getting gift cards too. I believe NJ is working on legislation to limit the fees on them (like the inactivity fee).
 
No way! I LOVE getting gift cards--would SO much rather have a gift card than another pair of slippers, gloves etc!!!
 
I'd rather a gift card then a fruit cake but I will admit I have forgotten to use them in the past!:rolleyes1
 
I don't mind getting gift cards but I don't like giving them for a reason that wasn't mentioned. If you give a give card, the recipient knows exactly what you spent. So I can't splurge or ahem...not splurge, without people knowing it.
 
I've never heard of that last one. Love getting them though.
 
Obviously the author of this article doesn't have teenagers--that is all they ask for, well that and electronic stuff.
 
I love gift cards! Just give me one to my favorite clothing store, restaurant or iTunes and I will be a happy girl. I don't get stuck with something that doesn't fit or that I do not like and the giver doesn't have to think too terribly hard about my gift.
 
I've never understood why gift cards are a more socially accepted gift than cash. The cash is much more versatile and never expires. Gift cards are really no more personal than cash (especially the Visa/MC/etc. cards). That said, I am certainly happy to receive gift cards.
 
I would rather not get gift cards or money.

I would actually prefer NOTHING over those 2 choices. If you can buy me a present while standing in line at a grocery store, obviously I am just an afterthought to you anyway. Now if you have to go to somewhere special to get a specific card, then that is OK by me.

Make me some cookies or just give me a heartfelt hug..... :thumbsup2
 















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