Then again, some people think that the disadvantage of gift cards is that they limit you to purchasing with one store. But if you really are predisposed to spending most of your money on one store, then that would not be a problem at all.

If you are looking to buy a gift card either for yourself or for others, then you need to follow a few pointers to avoid potential pitfalls to the use of gift cards. These tips will help you protect your interests and the interests of those you plan to give the gift cards to in the first place.

Gift Card Terms

The first thing you have to consider is the terms of the gift check. As with any purchase you always have to read the fine print before deciding on anything. The details on gift cards vary per store, and most stores have different promotions for their purchases.

Look at the details if it mentions anything about the expiry date of the gift card. This is very important as you could very well be purchasing a card that is close to expiry, or might be the expiry date comes across as too narrow for your liking.

Look at the special terms for purchases – are there any special provisions or requirements when you make a purchase? Is there a spending limit per day? What becomes of your credit if you are not able to fully use up a gift card?

You will have to consider all these things before purchasing the card. If you can create a matrix of differing cards for sale, then this will help you make better decisions, especially if you can create a list of pros and cons of each variant.

You should also look at how much you can save by the use of this card. You should be able to save a good amount of money from the use of gift cards. If you do not, then there is no use for you to be purchasing a gift card in the first place.

Your Store of Choice

When purchasing a card, make sure the store it is attached to is a store you are likely to visit. Or, if you are giving this card away as a gift, then you will have to find the store that appeals the person you are giving it to. You dont want to get stuck with a card you will never end up using because the store attached to it offers nothing you are interested in anyway.

Place of Purchase

The best place to get legitimate gift cards are is the store itself. Ask the customers service representative where you can avail of gift cards. You could even ask if you could get them for a better price. Even if you do not get a discount, the question would not hurt. Also, if you do get the discount then it would be worth your while.

There are some that sell gift cards and such. Of course, there is an inherent risk with buying such cards. These cards could be stolen, forged, counterfeit, or expired. While these cards give you great savings many people buy such cards whenever possible they could also be a big headache if you purchase the wrong cards. While buying gift cards from other individuals isnt really illegal, you should still exercise caution when buying such cards.

Trusted sellers are a rarity nowadays

Of course, you still can find those that sell such cards at lower prices than even the participating stores do. Since stores do not return money for any unused gift cards, holders of these cards have no choice but to sell them to other individuals if they arent keen on using the gift cards themselves.

About The Author: For more great gift card related articles and resources check out (editors note: site appears to be no longer active)  http://123giftcards.info

I gave a retail gift card to my nephew last year. My well kept 19- year old nephew usually feels he is being financially starved no matter how much money he is given. So the worry of the gift card expiring or incurring large fees was not my concern, he rushed to the store to use it the next day. What is my concern is that many people who buy and receive gift cards, be it, retail cards or bank cards, do not understand the limitations posed by these cards. This is evident from the ever-increasing complaints to consumer bureaus.

Most people don’t understand that when you purchase a gift card they are not necessarily equal to the cash paid for them over time. This is especially true of bank or mall gift cards. Mall gift cards are bank gift cards sold by a shopping mall complex.

To understand gift cards you should understand the following:

1. There Are Different Types
As mentioned before there are two types; the retail (store gift card) and the bank gift card (also mall gift card). There are marked differences between the two. Retail cards are the least expensive as far as fees are concerned, bank cards offer the highest potential for decreasing value over time due to the fact that many have excessive fees.

2. How They Are Used
Retail cards can be used at the store you purchased them at, and sometimes a sister store. Bank cards can be used anywhere bank cards are accepted and sometimes at ATM machines.

3. How They Make Their Money
Retail stores make their money from the purchase you make with your gift card. With bank cards its a whole different story. The bank cards make their money from the extensive fees charged for purchasing, owning, and using the card.

4. Fees Charged Can Be Hefty
Some retail gift cards charge a monthly non-use fee and will not replace lost or stolen cards, and may expire. Most bank cards charge a processing fee, a replacement card fee, an ATM fee, a telephone inquiry balance fee, a monthly maintenance fee, an expiration fee and some charge a fee to re-load the card.

5. You Can Counter The Fees
Before you buy a retail or bank card, read the fine print on the gift card, card jacket, or website. Understand the fine print and the cost associated with your particular card. Each card has a different set of rules.

Summary
Fees are usually charged with gift cards, much more so with bank cards than with retail cards. If you are given a gift card, use it right away. If you if you plan to give a gift card and you don’t think it will be used right away, give cash. Cash is still the least expensive, universally accepted gift.

Lois Center-Shabazz is the author of the three time award winning book, “Let’s Get Financial Savvy!” and the editor of the critically acclaimed website, www.MsFinancialSavvy.com

The new year is just around the corner, and I’m thinking that it is already time to get ahead of the gift game. That sounds like a great idea, especially with all of the after-Christmas sales that stores will be running. But how do you make the good thought a reality? It all starts with a detailed list.

Start with a piece of lined notebook paper. Divide the page into two columns. On one side write Holidays, on the other Birthdays. Then get out a calendar and, starting in January, write down the Holidays that you will be buying gifts for. I start with Valentine’s Day. I know I will be buying each of my children a little gift. I write February 14, my children’s names, and beside each name I write the amount of money I want to spend. I do this for each Holiday thru Christmas. By that time, the list is pretty long, but look at how much information I have!

Then I start over with the Birthday list. Again, starting in January, I start listing the people whose Birthdays I will be buying for. My first Birthday is my mother-in-law. So I write January 31, Mom G., $10. Go thru the entire calendar making these notes.

Once you have your lists finished, start making notes on your calendar, preferably marking occasions about two weeks ahead to give yourself plenty of time. If you need to mail the gift, I suggest marking it down three weeks ahead so that you can mail it a week ahead of time. If the calendar you are using is a purse-sized calendar, just carry it with you and you can shop for any number of people at a time. This will help you take advantage of sales and save time by not making a special trip at the last minute to buy a gift. If you have some idea of what you want to buy or where you want to buy it, make those notes on your calendar as well. By doing this, you are already more than half done with your gift giving for the year!

If you do not carry a calendar with you, use an index card that will fit easily into your purse. Write down the information from your first list for 3 months or so. Carry it with you and you have accomplished the same as carrying the calendar with you.

Another tip to make this easier year after year is to use your computer. Make your list using your word-processor or data base software, save it with a name and in a place that you will be able to find it again next year. This way, you don’t have to redo the whole list every year. Make changes as necessary and you are done! You may also be able to print out as much information as you would like to carry with you. Then you don’t have to transfer the information to a calendar or a card. Do whatever works for you to achieve your goal of getting ahead of the gift game.

Once you have made some purchases, you may want to designate a box to put these in until you need them. Why not go ahead and wrap the gifts when you get home and even attach the card as well? This way, the gift is ready to deliver and you have it marked so you know who you bought it for. If you choose to put several gifts in a box (which is what I do), then you may want to mark the gifts. Sticky notes may work for this, or perhaps you can attach a piece of paper with scotch tape or safety pin, depending on what you have purchased. It is also a good idea to keep your receipts, just in case. Mark your receipt with the name of the person(s), then keep in an envelope in your box of gifts.

Another method I use is to write down each person’s name on an index card. This works particularly well for the people, like my family, that I will be buying multiple gifts for throughout the year. On the index card I write down what I bought, what occasion I bought it for, and how much I spent.

Along with marking gifts that you have bought in advance and not wrapped, why not buy the wrapping paper, a pen, an extra pair of scissors and scotch tape and put it in the box with the gifts? This makes the wrapping so much easier when you do it. Otherwise, if you’re like me, you have to drag out the box of wrapping paper, find the scissors and the tape just to wrap some gifts. That makes the task that much more daunting. I am more likely to do it if everything is in one place.

You can apply most of these principles to shopping on the internet.as well. Many online stores will mail your gift directly to the recipient enclosing a gift card on your behalf. If you are looking at a handcrafted item, give yourself plenty of time, maybe more than I have noted here. Many very special gifts are made one at a time as you order them, so you must give the artist time to make your item.

Remember, no matter where you do your shopping, how much you spend, or when you wrap the gifts, it all starts with a detailed list and a calendar.

Author Debbie Garrett is a Mom of 3 and owner of “The Bear Family Gift Corner” http://www.bearfamilygifts.com Specializing in personalized gifts for new babies and weddings, as well as many other occasions.