Gift Cards: A Word of Caution Before Purchasing Gift Cards This Holiday Season

With just a few shopping days left until Christmas, you might find yourself running out of ideas and time in finding that perfect gift for a loved one. And let's face it, some people are just hard to buy for, plain and simple. They might already have pretty much everything they need, that you can't possibly think of what else to get them. Or maybe they're the type to return gifts to the store and exchange them for something entirely different, that you have to almost wonder why you even bothered to fight the traffic, squeeze through the crowds, stand in long lines at the cashier counter, just to get the gift you chose for them.

Christmas shopping can sometimes be such a pain. And so, the gift card was invented. It makes gift giving so much simpler.

Gift cards can help the shopper save a lot of time, energy and frustration. It only takes minutes to go into any store and request a gift card. Sometimes they even come with pretty envelopes, so there's not even a need to wrap it. The recipient of the card can just take it with them, the next time they're out shopping and purchase an item of their choice... no disappointment at getting something that isn't quite their taste or doesn't fit, no disappointment at opening something that is so bazaar and off the wall, no frustration with a gift that becomes broken with one use ....no returns. What could be simpler?

Gifts cards are a quick and easy way to say "I was thinking about you". They do lack a sense of personal touch, but sometimes it is a good last resort when you just can't think of the perfect gift, or perhaps even when the stores have run out of a certain item just prior to the holidays.

However, besides lacking that "personal touch", there are a few disadvantage to gift cards, one being that they often carry expiration dates on them. If your recipient doesn't redeem them almost immediately, they can find that in time, the card decreases in value. For example, if you purchased a $20 gift card, after a month or two, it might only be redeemable for $18 worth of goods. The longer the recipient holds onto the card (and often people will forget they have them until it's too late), the less it will be worth, until it is basically worth nothing. This might depend on each individual store's policies, as some stores may redeem the card for full value, but up to a certain date. You may not know which is the case, until you try to use the card.

One must also be very careful WHERE they are purchasing gift cards this Christmas. With the country being on the brink of a recession (or in the midst of a recession), many companies or businesses find themselves in the throws of bankruptcy. The consumer might not even be aware of which companies might be shutting down. This Christmas shopping season might be their last "hurrah" before they close their doors permanently. Consumers have to be very careful in choosing which stores they purchase gift cards from. If a store is about to close it's doors, the gift card may turn out to be null and void, meaning your recipient won't be able to redeem it for anything, anywhere.

SOME POSSIBLE SOLUTIONS TO THIS DILEMMA

Before you think to purchase any gift cards this Christmas, check online, or in your local news paper/online news site to see which companies or businesses in your area might be closing after the holiday season. You may also want to check the internet site of the store where you were thinking to purchase a gift card. Their web site might be helpful in letting you know if they are going out of business.

For example, "Linens-n-Things" (at http://www.lnt.com/home/index.jsp ), states that they are in fact, going out of business and are selling off their remaining inventory at drastically reduced prices. You may still want to get in on the bargains, but a gift card would be out of the question for this particular store. Other stores may also let you know, via their web sites, if they are also closing due to the flailing economy. Check to be sure.

Another possible solution, If you are still thinking about purchasing a gift card for a friend or family member, is to consider a "mall" card. In this way, they can redeem their gift card at any store of their choice that is within a particular mall. If one store happens to be closing its doors permanently, they will still have the option of choosing other stores within that mall to find an item of their choice.

So be careful at which stores you purchase gift cards this holiday season. The gift you give your loved one, might end up being as good as a costly, empty box.