LAS VEGAS (FOX5) -
Gift cards have become a billion dollar industry with estimates putting the average American spending more than $150 this year, that according to the National Retail Federation. NRF also says about $28 billion will be spent on gift cards this year alone.
They're convenient, easy to find and people love getting them as opposed to that bad Christmas sweater. But there are some things you should be aware of before you buy them and also when you get them as a gift.
Tip No. 1: When buying a gift card, make sure the scratcher portion is still covered. That important code if exposed could mean a thief is just waiting for someone to load that card with cash and then use it to shop online without even having the card in their hands.
Tip No. 2: Only buy from stores and sources you trust. The Federal Trade Commission advises to avoid online auction sites because sometimes the cards can be counterfeit.
Tip No. 3: Read the fine print to avoid fees. Some cards charge a processing fee even though most are free. There's no reason to pay for cards with fees. Some cards will also lose value over time.
Tip No. 4: Keep the receipt. For each card you buy, save the receipt and give it to the person who you are giving the gift card. That way if the card is lost or stolen you may be able to retrieve the card's value.
Tip No. 5: Use it! More than $41 billion in gift cards went unspent between 2005 and 2011, that according to the Wall Street Journal. Don't waste what is essentially cash in your pocket. If you won't use the gift card either give it away or sell it to someone who will.
Happy shopping.
Copyright 2012 KVVU (KVVU Broadcasting Corporation). All rights reserved.
