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Gift Cards Coming With Fewer Strings
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Consumers also have to be take more responsibility, experts said. "If you are the recipient of a gift card, use it promptly because if you don't, it may devalue or, more likely, you may lose it," said Jack Gillis, a spokesman for the Consumer Federation of America. "It seems clear that these companies are benefiting from the fact that a lot of gift cards simply don't get used for whatever reason."
A recent survey by Consumer Reports found that many gift cards go unredeemed. In fact, 27 percent of respondents had not yet used gift cards received last year. Tower Group, a research and advisory firm in Needham, Mass., found that $7.8 billion in gift card value will go unused this year. Last year, the firm's study showed that $8 billion had been left unspent.
Most survey respondents said they didn't have time to use their cards. Others said they couldn't find anything they liked or forgot they even had the cards.
Consumer advocates advise gift givers to make sure they buy cards from a business the recipient will actually want to go to. They also say the gift giver has to make sure to include the terms and conditions with the card. Many times, the terms and conditions come separately, the advocates said.
For the recipient, the advocates advise registering the cards with the issuers if they can, in case they get lost or damaged. In addition to using the cards promptly, they recommend spending them to the last penny.
Greg Daugherty, executive editor for Consumer Reports, recommends steering clear of gift cards.
"One of the reasons I think gift cards are appealing is that they're shiny and pretty and seem like more thought went into them," he said. "But money is more convenient and doesn't expire and has no maintenance fees."
Gift card proponents disagree. They point out that not only can the cards be convenient but that many retailers are now personalizing them. For instance, if you buy the Getaway Gift Card from BedandBreakfast.com, you can add a message and a photo.
"It seems that people are trying to find gifts that match the need of the recipient," said David von Storch, president of Vida Fitness in the District, which recently started selling gift cards online. "But because we're all so busy, I think we've all given one too many gifts that get into the regifting pile."
