Important News About Gift Cards

Use It Or Lose It: Making
The Most Of Gift Cards

Chances are you’ll give or receive at least one gift card over the holidays, but there’s more to buying and redeeming them than you think. Follow these tips to get the most for your money.

If you’re purchasing one…
• Only buy cards that clearly state the cost, monthly fees and expiration date.
• Include your purchase receipt with the gift card in case the recipient has problems with it.

If you’re using one…
• Know what you have. Is it a store card or bank card? Bank cards (Visa, MasterCard and American Express) are popular but they come with fees and terms. If you receive a bank card, register it online so you can get a replacement if it’s lost or stolen. (You’ll need to report it right away.)

• Use the total value of the card within six months. You’ll avoid fees and the possibility of the store going out of business.

• Try to use the card at stores that accept split payments (part card, part cash). While most large chain stores do, some stores don’t. The Consumer Federation of America says 10 percent of the value of bank cards is never used.

• Keep track of your balance (the store may be able to tell you). It’s easy to forget you have money left on the card. Any unused amount only benefits the store or bank.

There’s good news: Effective August 2010, a new law requires cards to be active for at least five years and prohibits companies from charging fees if gift cards are used within the past 12 months.