Practical Tips For Giving Or Getting Gift Cards This Holiday Season

When it comes to gift cards, the "one size fits all gift" makes it easy when giving to someone who is hard to shop for. But with simplicity comes some hidden facts about gift cards, giving or getting, that you should be aware.

To get maxium value from gift cards, especially general purpose cards that can be used anywhere, USA Today recently published tips for gift card and getters that you may not have known:

Giving Gift Cards:

Be Aware Of Upfront Fees -  General-purpose gift cards, such as those issued by MasterCard, American Express or Visa, typically charge fees ranging from $4 to $7 per card. If you have a long gift list, those fees can add up.

Pay Attention To Expiration Dates And Inactivity Fees -  Many general-purpose gift cards charge fees of up to $4.95 a month if the card isn't used after a certain period of time. These fees can reduce or wipe out the value of the card.

A credit card reform bill signed into law this year prohibits gift cards from expiring in less than five years and bars issuers from charging fees if the card is used in the first 12 months. The restrictions won't become effective until August 2010. In September, though, American Express announced that it's eliminating monthly fees on all of its gift cards, including those that have already been purchased.

Consider A Retail Card – If you know the recipient likes a particular store or restaurant, consider giving a retail card instead of a general-purpose card. Most retailers don't charge a fee for their gift cards. You'll just pay the face amount on the card. And most retail cards don't expire or charge inactivity fees.

Receiving A Gift Card

Use It Quickly -  You won't have to worry about inactivity fees or expiration dates.

Save Gift Card Package And Receipt – That way, you'll be able to replace a lost or stolen card.

Know Your Balance – Many gift card providers let you check your balance on their websites.

Source: USA Today