The best way to use your gift card

Many times when a person doesn’t know what to give, they will buy a gift card. This card can be for a negligible amount or for several hundred dollars. The giver feels that this frees him from buying something that will not be useful to the receiver.

There are thousands of places that have these cards prominently displayed, just waiting for a buyer. This has become popular as it eliminates the need to do a lot of shopping. It is designed to allow the recipient to make a purchase of their choice at a specific store or location of their choice.

It was in 1994 that the current type of cards were introduced. Before that date, stores and other establishments issued gift certificates. These are still being issued in some areas. They are a paper document that can be used for future service at the issuing establishment. There is no expiration date or fees on this certificate.

There are several types of gift cards. Some can be spent anywhere, while others will only allow use at the store where they were purchased or elsewhere in your chain. There is also what is called a type of “Hybrid Closed Loop” that can only be spent at stores in a specific mall. If you don’t know where the recipient likes to shop, cash-valid cards are always welcome.

Many cards have a time limit and can lose their value. Some have expiration dates, usage restrictions, and administrative fees. Over time, if not used, the value may be zero. Although some states have been enacting laws regarding capping fees and expiration dates, this is not a practice across the country. Therefore, if you receive a card, you must use it immediately.

Statistics show that in 2012 more than $100 billion was spent on gift cards issued in the United States. It has been estimated that more than 20% of these will not be used. This is usually because they have been put in a drawer or elsewhere and forgotten.

If you get a card you don’t want, there is now an online secondary ticket market where you can sell it. This will not make any difference to the giver as they will only know that they received a gift that was appreciated. They don’t need to know you exchanged it with gift card buyers for cash.