Those buying gift cards this year will buy an average of 3.38 cards, for a total of $108.28, according to the retail federation survey.
So what's driving this gift card trend?
"While there is certainly significant impulse-purchasing of gift cards, we are seeing a much larger number of buyers who are purposefully choosing a gift card as a first choice, saying they want to ensure the recipient receives something he or she would enjoy," said Bob Skiba, executive vice president and general manager of Stored Value Systems, one of the nation's leading suppliers of gift cards.
I'm not surprised by this trend. Finding the right gift for people these days is difficult. So many of us have so much of what we need that we're driving our friends and family crazy trying to guess what we might want.
As a result, in desperation, we give bad neckties, odd-colored sweaters or sample packs of sausage.
Most of today's gift cards are "stored value cards," which have all but replaced paper gift certificates. If you plan on giving a gift card, advises the retail federation, here are some important things to know:
• Not all gift cards are the same. Check around and read the fine print because retailers and banks have different policies.
• Some gift cards can depreciate if not used for a certain period of time. That's because some issuers charge "inactivity" fees.
• Some gift cards can't be used after a certain period, typically 12 months.
• Some retailers are able to reissue a lost gift card, but it's important to have the original purchase receipt.
