Reconsidering the Gift Card

Gift cards have been among the most popular gifts in recent years.  However, there are signs that they are starting to fall out of favor, and for good reason.  As MSN’s Liz Pulliam Weston pointed out, any store-branded card can become worthless if the retailer goes out of business.  Other problems include the fact that the card may never be used.  Some 25 percent of last year’s recipients haven’t used their cards, according to Consumer Reports.  Plus, there can be fees involved and restrictions on how some cards can be used.

On the positive side, CBSNews.com recommended using gift cards for your own shopping.  Some stores are offering bonus cards with the purchase of a certain number of cards.  Pair them with other store discounts and you can save big.  Looking for discounted cards?  The CBSNews.com story said to look on Plastic Jungle, GiftCards.com, and eBay.

Of course, you could also just give cash.  Somehow, marketers have convinced us that doing so is tacky.  However, cash is accepted everywhere and comes with no added fees or restrictions.

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One Response to Reconsidering the Gift Card

  1. Anonymous December 16, 2009 at 5:55 PM #

    I also read an economist’s view of gift cards recently–that the mere possession of a gift card changes the psychology of spending, whereas a gift of cash does not similarly encourage the recipient to spend.

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