Gift cads have become very trendy for the holiday season. Many people now opt to give out gift cards in place of presents. They are quite convenient especially when you do not know what to get the other person for the holidays. But even with the amount of convenience they come with, they are not always the best.
Here is what to look for when giving out gift cards
before you purchase the gift cards, you have to understand how they work and their negative and positive side. They are very convenient when compared to gifts but can be a burden too. Look out for the fees when purchasing a gift card. Before you make the purchase, check if the card comes with an automatic annual of monthly fee. They are very common on third party gift cards.
Also check where the card can be used. Most cards have store purchase rule or limit imposed but some can be used at just about anywhere. Check whether the gift cards can be used in stores as well as online before you buy them. You want to get a card with the two options so that the one getting it has it easier.
What are some advantages of giving out gift cards?
Gift cards make it convenient for both you and the one receiving the card. They are great for people who have specific wants and needs or may be very difficult to shop for. Gift cards allow the receiver to choose how they want to spend the money they get.
You get to save money
Depending on where you purchase the card, you can save a lot of money on a gift card. There are card retailers that offer close to 10% discount when the spender goes to specific stores for their purchase. It is mostly with online venders that you will find guarantee on the value of the cards plus a wide range of discounts.
You avoid giving anyone unwanted gifts
Like I mentioned, some people are really hard to shop for. If you are not one to spend time of hunting for a gift, then this might save you a lot of time and resources.
Here are reasons why it is not best to give out gift cards
If the company happens to file bankruptcy, you will not get you money back.
Fees and expiration dates
While some cards last forever, others have a pretty fast expiration date. Some will charge upfront fees when you do not use the card within a certain timeframe.
Giving an interest-free loan
When you purchase any gift card you have to make the payments immediately. Essentially, the company takes the money you pay the right away but you will not get any value in return. All you get is a promise of future value for your money. If substantial, the money is better of in a savings account earning more interest instead of being used for a gift card purchase.
They can get impersonal
Unlike when purchasing a regular gift, you do not need to put so much thought into a gift card. All you need to do is swipe your card and you have it.