Gift Card Gifts

For the past five years, gift cards have remained one of the most requested gifts at the holidays. Nearly six in 10 Americans say they want a gift card for a Chanukah gift or Christmas present, according to the National Retail Federation.

What I love about giving gift cards as a gift is that they give the recipient the chance to buy what he or she likes. Also, if you need a last-minute gift—Chanukah starts tonight, in case you didn't know—or you've procrastinated on buying gifts, a gift card works in a pinch. Additionally, this year restaurants and retailers gave people lots of options for earning free gift cards. Currently, I have two CVS Extra Bucks receipts in my gift card wallet that I can trade in for free gift cards. Finally, gift cards are affordable because you are in control of how much you spend on them.

That said, if you're considering buying a gift card as a gift this year—or you expect to be on the receiving end of one—keep the following 4 tips in mind, courtesy of the Retail Gift Card Association:

1. Inspect the card. Prior to purchasing gift cards, thoroughly inspect them to ensure that the packaging has not been tampered with, and the security code on the back has not been scratched off.
2. Keep your receipt when buying gift cards. If giving a gift card, give the receipt as well. (You can ask for a gift receipt.) If you receive a gift card, keep the receipt in a safe place. Most retailers will replace the verified balance remaining on a card if it is lost or stolen as long as you have the receipt. Additionally, if for some reason the gift card wasn't properly activated, the receipt will prove that there is, in fact, a balance on the card.
3. Register your card. If this option is available, take advantage of this added security method. You protect any remaining balance at the time the card is reported lost or stolen. Also, many retailers will reward you for registering your gift cards, such as Starbucks, which will then give you a freebie on your birthday.
4. Use your gift cards. Gift cards are meant to be spent, not put away in a drawer where they may be lost or forgotten. I advise creating some kind of gift card wallet so that whenever you go shopping, or visit a restaurant or store, it's easy to bring your gift cards with you so you can spend them.