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Consumers warned to proceed with caution when buying holiday gift cards
By AUDREY M. MARKS
While holiday gift cards may remain a popular item for hard-to-shop for people on your list, consumer advocates are warning they may not be the best gift.
With a lot of reports flowing on the Internet, from reliable and maybe not so reliable sources, consumers need to be wary about what gift cards they buy and where they are buying them from.
To wade through the information the Better Business Bureau is telling shoppers to do their own research before buying a gift card if they feel uneasy.
The bureau is offering some tips this holiday season to make sure consumers get their money worth:
If the business closes, you could lose your gift and money. But in the cases of a large chain, you may be able to travel to an open store to redeem the card.
Check the retailer's web site for their gift card policy or ask the store's management when you are shopping.
Read the fine print. Gift cards can have expiration dates and little known activation, transaction and maintenance fees.
Despite the vulnerable economy, a recent survey shows shoppers will still be buying gift cards this year. Retailers are expecting card sales to fall nearly 6 percent this holiday season.
The National Retail Federation's annual gift card survey is projecting 54 percent of shoppers will buy gift cards this year, compared to 57 percent last year. The results of the study show consumers surveyed plan on spending an average of $47 in gift card purchases, down from $156 during the 2007 holidays.
"Since gift cards never go on sale, some price-conscious shoppers will be passing up gift cards in favor of holiday bargains," federation Chief Executive Officer Tracy Mullin said in a release Wednesday. "Retailers may need to make minor adjustments to holiday plans as fewer people may be hitting the stores in January to redeem gift cards."
Stores like Circuit City, Linens 'n Things, and Steve & Barry's, that have filed for bankruptcy and are facing store closures across the nation, will be liquidating merchandise a boon for holiday bargain hunters.
According to Circuit City's corporate web site, the remaining stores would honor gift cards for their customers. Three Houston area stores are slated to close, though Katy's will remain open.
But for shoppers who need more reassurance ,there are always pre-paid bank cards like those from American Express, Visa or other banks that are accepted at most retailers and work like a debit card.
“Cold hard cash is going to be on a lot of wish lists this year as families find it increasingly difficult to balance holiday spending with paying for essentials,” Steve Cox, Better Business Bureau spokesperson said in a statement.
“Pre-paid bank cards can be a great way to give money, but givers and receivers need to pay special attention to the terms and conditions, which can include substantial fees and limitations.”
With a lot of reports flowing on the Internet, from reliable and maybe not so reliable sources, consumers need to be wary about what gift cards they buy and where they are buying them from.
To wade through the information the Better Business Bureau is telling shoppers to do their own research before buying a gift card if they feel uneasy.
The bureau is offering some tips this holiday season to make sure consumers get their money worth:
If the business closes, you could lose your gift and money. But in the cases of a large chain, you may be able to travel to an open store to redeem the card.
Check the retailer's web site for their gift card policy or ask the store's management when you are shopping.
Read the fine print. Gift cards can have expiration dates and little known activation, transaction and maintenance fees.
Despite the vulnerable economy, a recent survey shows shoppers will still be buying gift cards this year. Retailers are expecting card sales to fall nearly 6 percent this holiday season.
The National Retail Federation's annual gift card survey is projecting 54 percent of shoppers will buy gift cards this year, compared to 57 percent last year. The results of the study show consumers surveyed plan on spending an average of $47 in gift card purchases, down from $156 during the 2007 holidays.
"Since gift cards never go on sale, some price-conscious shoppers will be passing up gift cards in favor of holiday bargains," federation Chief Executive Officer Tracy Mullin said in a release Wednesday. "Retailers may need to make minor adjustments to holiday plans as fewer people may be hitting the stores in January to redeem gift cards."
Stores like Circuit City, Linens 'n Things, and Steve & Barry's, that have filed for bankruptcy and are facing store closures across the nation, will be liquidating merchandise a boon for holiday bargain hunters.
According to Circuit City's corporate web site, the remaining stores would honor gift cards for their customers. Three Houston area stores are slated to close, though Katy's will remain open.
But for shoppers who need more reassurance ,there are always pre-paid bank cards like those from American Express, Visa or other banks that are accepted at most retailers and work like a debit card.
“Cold hard cash is going to be on a lot of wish lists this year as families find it increasingly difficult to balance holiday spending with paying for essentials,” Steve Cox, Better Business Bureau spokesperson said in a statement.
“Pre-paid bank cards can be a great way to give money, but givers and receivers need to pay special attention to the terms and conditions, which can include substantial fees and limitations.”
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