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Get More From Your Gift Cards
Posted by Kevin Purdy at 2:15 AM on December 12, 2007
Personal finance blog Get Rich Slowly rounds up some of its readers' comments from a recent post about the pros and cons of gift cards, and unearths a few strong tips and things to consider in the process. For example, one reader advises against making those checkout-aisle impulse card buys:
It is better to buy a card directly from the issuer versus at the grocery store, because the issuer will have greater control over adding refunds directly to the card (if you or your recipient should need to do so). Shell accidentally charged me a $1 or $2 inactive fee, but since my card had been purchased at Safeway, they could not add the balance directly back onto the card. I would have to write to them for a refund (in the form of another gift card). At that point it just wasn't worth it!Another reader who worked in retail points out that buyers almost always spend more when they're toting gift cards—a good reason to avoid giving them to less money-savvy friends. How do you decide whether to buy a gift card or straight-up gift for those on your holiday list? Share your thoughts in the comments. Photo by misocrazy.
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
rolltimer
Posted 2:31 PM 11/12/07
Cash costs cash. Give a gift card through redemption of rewards points accumulated all year using a credit card and the gift can be essentially free of cost to you while still valuable to the recipient. Best practice is to pay off your credit balance monthly while you're racking up the points. Choose a restaurant (everybody's got to eat!) that is in the recipient's locale. The gift card can be ordered online and even mailed to the recipient for you in some cases.
rolltimer
trippingchristy
Posted 2:24 PM 11/12/07
I prefer to give gift cards rather than cash because I figure at least I put some thought into finding a store where the person enjoys shopping. It's not as personal as choosing a gift myself, but it's not as impersonal as cash.
trippingchristy
Kashell
Posted 1:59 PM 11/12/07
Cash is better. Not only did you waste your time buying a gift card for me, more than likely, I won't be able to spend it.
If you don't know, give cash. Or just ask. :)
Kashell
hpptpnts
Posted 1:40 PM 11/12/07
Me likey gift cards to Amazon other than that I'd rather pass. Some people really like them though, some good ones if you want to give a small increment is Starbucks, Subway, or Chipotle. $5 worth will cover most single visits to all those places, and $10? even better. Cash is always appreciated.
hpptpnts
massysett
Posted 1:11 PM 11/12/07
Give cash, give a gift, or give nothing; what's the point of a gift card...
massysett
planetmike
Posted 1:01 PM 11/12/07
Why lock me into buying books at Borders, or tools at Home Depot, when I can shop around and get a better deal at Amazon or Lowes? Cash please.
planetmike
vesuvian
Posted 12:00 PM 11/12/07
The equivalent in USD or local currency is *always* much more appreciated. The possible exception might be to a supermarket. I'd suggest a "megachain" store like Wal-Mart, Target, or Best Buy, but that evokes visions of cheap Chinese crap coming into a household in place of food. Sure, it's a gift - so why not let people make up their own minds about how to use the funds? As my mother-in-law used to say, "right size, right color".
If you just want to throw $5 or $10 at someone, a national fast-food chain you think they frequent would cover most of a lunch.
BTW, I'm a man and I'd rather have a $20 in cash any day than a gift card to Macy's, with all the guessing and couponing required to get a "deal" there.
vesuvian
demona
Posted 10:47 AM 11/12/07
Indeed - I just had a similar experience when purchasing an Amex gift card at CVS. I was charged an additional $5.00 to purchase the card ($50 gift card) and the fine print on the back states that the recipient of the card will have a $2.00 "surcharge" if they attempt to use the gift card 12 months after the purchase date!
I guess that's the price I pay for giving gift cards - I feel they are so impersonal but men seem to appreciate them ;)
demona
ahoier
Posted 4:28 PM 11/12/07
Gift cards are easier to lose than cash too.
Which is why I prefer Cash :) And ofcourse, I'm not "locked in" to where I can spend the money....
ahoier
vesuvian
Posted 6:51 PM 11/12/07
@rolltimer
You make my United Mileage Plus card tingle. And not in a good way.
vesuvian
MariGarza
Posted 11:19 AM 12/12/07
Gift cards tend to work best for older people on your list. Grandma just doesn't need any more crap. But try to give her cash and she wants to give it back.
Gift cards can be great if packaged right. Put a few gift cards together and give an experience.
Date Night: Give a gift card to a movie theater and a favorite restaurant.
Sleepover: For the kids, package gift cards to Blockbuster to rent games or movies and to a grocery store to buy snacks for them and their friends.
MariGarza
mxjx
Posted 8:42 PM 12/12/07
Wow, I think Scrooge left a bit of himself here. Of course I'd rather have a gift I want instead of I don't. But the advantage of cash is also it's disadvantage for me, it becomes another dollar in the bank or wallet to be more likely spent paying a bill as in something special. And that doesn't sound like a great thank you card to me.
mxjx