Gift Card Expiration and Depreciation - Use it or Lose it

When that perfect gift is as elusive as can be, a favorite store's gift card can serve as an excellent alternative of hours scouring the shelves for a birthday or holiday gift. Most stores offer gift cards, which have evolved from their paper coupon-resembling predecessors. These plastic cards swipe just like credit cards, and the post-purchase balance remains on the card for next time's use.

Not only are these cards fine as gifts, but they also fit nicely and snugly inside consumers' wallets and credit card slots. These cards can be purchased in varying amounts to fit any budget and they are literally used in the place of cash. The freedom delivered to the gift card recipient allows him or her to select the most appropriate or desirable merchandise at his or her own shopping convenience.

Despite the ease and flexibility provided when using gift cards, several disadvantages are carefully hidden in the fine print. One major downside to gift cards involves expiration. Although some gift cards do not expire ever, many cards become invalid after one year, two years or even six months. Also, a period of inactivity with funds remaining may also lead to imposed "service fees" that deduct a certain dollar amount or percentage as each additional month passes. These fees can be as high as two or three dollars per month, deducted from the remaining balance of the card.

Law in some states orders that money collected from unused gift cards must be turned over to the state Treasury at a certain time post-expiration. Companies from which the gift cards were issued are not allowed to retain these funds as redemption of merchandise was never fulfilled. If you locate an old gift card or expired gift certificate, the best thing to do is to contact your State Treasury to learn if you are entitled to the leftover balance. Some stores may accept expired cards and certificates, but even if they do not, you should be reimbursed for the value of the balance.

To get the most out of gift cards, consumers should do the following:

Be aware of the expiration date, if there is one.

Keep track of how much of the gift card has been spent and what is left. Often, the cashier may have little stickers that can easily be stuck to the card with the remaining amount.

Keep your gift cards together in your wallet. Be sure to remove them from cards or envelopes immediately upon receipt and keep them in a place where you can easily access them.

Take notice if your gift cards are accessible online. If a trip to the mall or the respective store is not your idea of a relaxing afternoon, try logging onto the Web to cash in on the rest of your card's balance.

Remember that the best time to buy is during a sale or when discounted merchandise is available. Buying items on sale or on clearance is a surefire way to get the most bang for your buck.

If there is an item that you strongly desire but would feel guilty purchasing for yourself, consider using a gift card you received as a present. The gift-giver can feel good about providing you with a chance to get a coveted item you would not otherwise have purchased!

Make every effort to use your gift card sooner rather than later unless you are saving it for something special.

Save receipts to prove former possession of your gift card, should it be lost or stolen or should you need to claim unused balances.

If your gift card's expiration date passes and you still have a credit remaining, contact the State Treasury. You can access the United States Treasury on the Web at http://www.treasury.state.com/. Simply execute a search for your state's treasury and locate the information on Unclaimed Property.