Guess what the number one gift to give has been for the past five years? Give up? It is the gift card! While most of us love giving and receiving the plastic wonder, we would be smart to read the fine print and keep in mind the following, as well:

•Beware of fees accruing (typical is a $2.50 monthly fee) on your major credit company gift cards for not using the cards after the first 12 months.

•Avoid buying gift cards from online auction sites. You have no way of knowing if the card is counterfeit. Also, be sure to hold on to the receipt, in case the gift card is lost or stolen.

•Consider the possibility that the retailer might go out of business, and in that case your card loses all value!

•Check the “Valid Thru” date. This is the shelf life of the magnetic strip that requires the owner to call the issuing company and request a replacement.

•Check when purchasing a card if you can also use it online. Some chains like T.J. Maxx, and Marshall’s do not allow their gift cards to be used online.

•Know the regulations of your state, and keep in mind the policy of the state the card recipient resides in. ConsumersUnion.org shows that California, for example, permits a $1 per month fee only when the card has a balance of $5 or less, the card has been unused for 24 months, and the card is reloadable. Also, any card with a cash value of $10 or less may be redeemed for cash.

•Don't forget to use your card! Up to 1/3 of card recipients do not redeem theirs (according to a 2006 Consumer Report), the top reasons being that they have not found time or they forgot they had it.

•Consider the proximity of the recipient to the store the card is good at. If you are holding on to a gift card you are doubtful you will use, try a card buy-back site like GiftCardBuyBack.com.

If you have any issues or complaints contact the Federal Trade Commission through its Web site or call 1-877-FTC-HELP (1-877-382-4357) toll-free. Complaints also may be filed with your state's attorney general.

Posted Nov 28, 2009 8:08 PM.

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