Christmas Gift Idea: Gift Cards

By Sirena Van Schaik

“Oh, you better watch out, you better not shout, you better not pout,” (Santa Claus is coming to town, J. Fred Coots and Haven Gillespie, 1934) because it is becoming that time of year when everyone is heading out to stores to fill as many wish lists as they can.

Every Christmas, there is always a rush to find that perfect gift and thousands of people start skimming articles to see if the perfect gift is listed for the world to easily access. The problem is, the answer is hardly ever in the articles since gift giving is a completely personal thing. Everyone has their own idea of what a perfect gift would be and everyone receiving that gift will have the same idea. It is an almost impossible quest and although I could make a few suggestions, there would be someone out there that would shake his head and say, “You mean, you think a singing tree is a great gift.” (Actually, I’m not too keen on singing trees so please don’t purchase one for me.)

Instead of looking at a great gift idea, I would like to look at a popular gift suggestion that has been making its way around the circuit over the last few years, and that is the gift card.

When I first started seeing gift cards, I often thought to myself, “That is just a horrible gift, I mean, where is the thought behind it? Who would want one?”

Of course, like everything, my mind was quickly changed when I realized that gift cards offer endless ideas for the hard to shop for person, which I usually am, and there really is no wrong way to give a gift card. They can be handy for giving to teachers, coaches and neighbors, and they can also fill the stockings for those people on your list who are impossible to shop for.

The etiquette surrounding gift cards has become more acceptable and now it is often a common item on my own wish list. I have found that it makes Christmas shopping much easier for most people, especially during the holidays when stores are packed like sardine cans, and most people enjoy having the option to choose their own gifts. It definitely cuts down on that horrible habit of re-gifting.

Even though my feelings on gift cards have changed, there are a few things that buyers should be aware of before they purchase those gift cards, especially right now when the economic validity of many stores is unclear.

Where to buy them:

Generally, when you buy a gift card, you can purchase them anywhere and everywhere, which I have done for the most part but right now, with everything in economic turmoil, it is important to really think about where you are purchasing your gift card. Let’s face it, as hard as it is and as sad, some of the stores are not going to be there when it comes time to use the card. For this reason, it is better to purchase gift stores from larger stores that are thriving in this hard economy.

It doesn’t mean that you shouldn’t purchase from the little guy, since they need our business to stay viable, but make them actual purchases and not gift card purchases.

Another great option for gift cards is to purchase one from a major credit card company. Just this last November, I received a gift card from MasterCard. This opens up the gift buying options since I can use the MasterCard gift card anywhere MasterCard is accepted.

The Hidden Fees:

Although it is illegal in some countries, states and provinces, some stores still slip in a few hidden fees into their gift cards. In essence, a gift card is supposed to work the same as giving money would. Therefore, there should be no additional charges for using a gift card.

Before you purchase your gift card, make sure that there are no hidden fees when you purchase the card and when you use the gift card. Generally, there should be no tax on gift cards since the tax would be applied to the gift.

The Hidden Conditions:

Before you purchase a gift card, it is very important that you look at the conditions on the card. Some have activation fees, see hidden fees above, and some have expiry dates. If there is an expiry date on the card, pass on it. Also make sure there are no “date” exclusions on the card. Some gift cards cannot be used on big sales right after Christmas, and this can really put a damper on after Christmas shopping.

It is important to remember that a gift card represents money so there shouldn’t be hidden fees or hidden conditions on cash.

Giving a gift card is completely acceptable and many people are beginning to request them on their wish lists so don’t feel as though you are cheating on shopping when you purchase a gift card. Instead, think about all the wonderful ways the recipient will be able to use the cards.

Happy gifting.