Using Gift Cards To Their Best Advantage

During the holiday season, American consumers went out of their way to give gifts to their loved ones, even amidst the on going financial crisis. With tight budgets however, consumers have been forced to be a bit more frugal with their gift giving. Still, it is the thought that counts, they say.

Consumers during the holiday season have been giving gift cards more and more every holiday season. This holiday season was no different. More consumers gave out gift cards this holiday instead of shopping for gifts. The advantages for gift givers of doing so is obvious and, for gift card recipients, it can be much more exciting to be able to receive something which lets you buy your own gift instead. Plus, with many consumers strapped for cash, a gift card can be a very welcome financial save in a pinch.

Generally, gift cards that come from major credit card companies such as Visa and MasterCard are much more flexible and can be used anywhere. Store specific gift cards such as those from Barnes & Noble are also good but are limited to their issuing stores.

Gift cards can be very useful but most gift card recipients need to be aware that there are a few minor details that they need to take care of to make sure that they use their gift cards to its full potential.

One important thing to remember about gift cards is that gift card holders need to secure their gift cards as soon as they can. Basically, consumers can look at gift cards as cash. This is especially true for prepaid debit or credit gift cards. Gift cards can, by necessity, can be used by anyone. Thus, it is important for gift card holders should choose to register or activate their gift cards so that, should the card be lost or stolen, they can reclaim its value. A lot of gift card issuers allow consumers to activate or register their cards through the internet.

Another thing that gift card holders should remember is to use their gift cards earlier rather than alter. Gift card issuers often charge a monthly administrative fee on gift cards if they go unused. Depending on the gift card, the fee may be waived for six or twelve months. Once the fee begins, it can quickly deplete the value of the gift card. Gift card issuers see gift cards as liabilities in their books and they want it out as soon as they can. It is important that gift card recipients check the rules that comes with the gift cards to make sure that they don’t get hit with fees.