CHARLOTTE — The holiday shopping season is already in full swing, and that means many of you are probably buying gift cards.
Consumer Adviser Clark Howard is offering tips on where to buy gift cards, how to get the most for your money, and how to determine if the one you have purchased is safe to use.
Between October and December of 2023, consumers are expected to spend over one trillion dollars, and over 50% of that spending will be done through gift cards, according to the International Council of Shopping Centers.
“Gift cards can limit where you can spend that gift, and retailers can often go out of business,” said Sally McDonald, managing editor at Clark.com.
McDonald said where you buy your gift card is key, and if you are going to shop online, you should choose a retailer with a money-back guarantee.
“There can be a lot of scams out there online, especially in online marketplaces. So, for example, card cash has a 45-day guarantee, so if the gift card is somehow empty, then you are very low-risk,” McDonald explained.
If you purchase the gift card over the counter, McDonald said, “Make sure you check the back to make sure the pin hasn’t been scratched off.”
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When it comes to stretching your holiday budget, look for gift cards that offer bonus money.
“At a warehouse club, you can sometimes get a gift card for $100, but it’s worth $125 in funds,” McDonald said.
But before you click or swipe to buy anything, take a look around the house. Early this year, a Bankrate survey found Americans are sitting on just over $21 billion in unused gift cards.
“You run the risk of losing value or just paying out of pocket for things that otherwise could have been free,” said Bankrate Analyst Ted Rossman.
Also, don’t assume old gift cards have expired.
“Gift cards can’t expire for at least five years, although they can charge inactivity fees after 12 months of nonuse,” Rossman explained.
Gift cards don’t get better with time. Even if you have five years to use them, use them right away or sell them right away.
So you can get that cash back in your pocket.
VIDEO: Watch out, your gift card may already have a $0 balance
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