How to Increase the Power and Value of a Gift Card

Gift cards are one of the easiest, fastest, and most efficient ways to say Happy Birthday or Merry Christmas to someone special. The recipient can purchase what they want, when they want. These cards benefit the recipient, but it also gives a beneficial edge for the merchant. In the past, gift cards had only so much value, but today the value of the card can increase by earning interest, rewards, and other trade-offs.

Last year alone, over 8 billion dollars were lost from gift cards that have expired, been lost, or have decreased in value. That is a lot of gift-giving loss, a loss that even the Grinch that Stole Christmas probably couldn't do.

Gift cards and gift certificates hold not only a value to the recipient, but the company too. When a customer buys a gift card, that money belongs to the company until it is used, meanwhile earning interest for the company. The earlier you buy a gift card, the more value to the company. If you buy a gift card for a recipient in June, but don't give it until Christmas, this helps the company as the interest rolls in (not to mention it helps us to eliminate last minute shopping for birthdays and holidays). When a company makes money, we benefit by getting lower prices, more rebates, and better bargains.

By the time the merchant offers the lower prices and other incentives, we won't have the benefit of purchasing those deals because the gift cards are no longer hold the original value.

The 8 billion dollars loss from last year is expected to rise in the future, but there ways to maximize the value and benefit from the card.

A new company launched in December 2008, Leverage Cards, will offer real-time management and value of all your gift cards, let them earn interest, and even let you trade them too. Not all companies participate yet, but as of this writing, they have over 200 companies willing to offer participation.

Buyers can maximize the value of a gift card:

The Value of a Favorite Store List

If you are giving a gift card, ask the recipient for a list of their favorite stores. Sometimes we will receive a gift card for a store that we do not shop at often. Getting a gift card for someone who does not shop at a particular retailer can be as hard on the recipient as giving a sweater that is two sizes too small.

The Value of a Boycott Store List

On the other hand, make sure that the recipient does not boycott a merchant, or does not want to shop with a particular company. Some companies may have social or political views that are not shared alike. This may reflect on the recipient's desire to do business with them. This is what sharing through the year is about. Talk to your friends, family, and colleagues to find out how they are doing throughout the year. This shows that the gift card was not impersonal because you were sharing time and care throughout the year. According to Jack Collis, author of When Your Customer Wins, You Can't Lose, a typically dissatisfied customer tells eight to 10 people of his dissatisfaction. Will you be one of those people that the gift recipient will share the dissatisfaction during the year? Make sure the gift cardwill be from a company they want to patronize.

Need vs. Wants

Sometimes money-valued cards for utilities or food are the best gift cards around. We may not want a gift card for a food or phone bill, especially when our wish list, gift registry, or Christmas list is full of the things we want. However, in times of a rough economy, needs override any wants and it may be the best gift you can give.

The Value of a Special Touch

Sometimes giving a gift card may seem impersonal. We can find ways of making it truly a thought-out gift. For instance if you buy a gift card to Barnes and Noble for your grandmother, tell her you saw a book there (name the book or item)and you thought that she may like it, but wanted to make sure it was something she'd like by giving her the option whether to buy it. It will show that there was thought and sensitivity when you bought the gift card. It's also a conversation starter.

Gift cards may be a better option than buying an item from the store and having the recipient needing or wanting to return the item. Although handpicked gifts are thoughtful too, it takes the hassle out of the returns process at the store. In addition, many gift receipts expire earlier than a gift card.

Check the Terms and Conditions

Make sure you understand the terms and conditions of all purchases including gift cards. If the terms state that the card or certificate could decrease in value or expire, let the recipient know.

Now, the value of a gift card is far more powerful than yesteryear.