Gift card sales lower, but I bet you'll get one

By Jason Foster - jfoster@heraldonline.com

You'll probably get one before the month is out, and you'll likely give one, too.

I'm talking about gift cards, those plastic wonders that remain the most-requested holiday gift item, according to the National Retail Federation.

But this year's versions might not be as valuable as what you're used to because consumers are expected to spend less than usual.

Thanks, economy.

The NRF said more than 77 percent of shoppers will buy at least one gift card this holiday season. The average person will spend $139.91 on gift cards this season, the NRF said, down from $147.33 last year. The average value per card will dip slightly to $39.80 this year, compared with more than $40 last year.

But they remain an easy and popular gift option, with most major retailers making them available this holiday season.

So, which gift cards are the most popular this year?

According to the retail federation, department store cards are the hottest item, with more than 38 percent of shoppers planning to buy one. Restaurants (33.4 percent), bookstores (24.4 percent), electronics stores (18.8 percent) and discount stores (16.3 percent) round out the top five.

Though gift cards continue to be seen by some as too impersonal, one expert said they actually might be the perfect gift in the wake of the recession.

“There aren't many items out there more practical than a gift card,” said Phil Rist, an executive vice president with BIGresearch, the firm that conducted the National Retail Federation's annual consumer holiday survey. “In a holiday season where people want to make sure that recipients will be able to use what they're given, letting someone pick out their own present by giving them a gift card is about as sensible as it gets.”

Because plenty of the cards will change hands in the coming weeks, here are a few tips to make sure you get the most out of yours:

Know the difference between gift card policies from retailers and banks. There are big differences between gift cards bought at a store and those issued by a bank, the National Retail Federation said. Most national retailers do not have fees or expiration dates on gift cards. But a bank-issued gift card, or one issued by a mall or credit card company, is more likely to have an expiration date and various fees.

Personalize the card. The NRF recommends packaging the card with other items the recipient will like. The group even suggests buying a card from a retailer that allows you to design one with a personalized message or photo.

Only buy from a reputable retailer. Gift cards bought through online auction sites are more likely to be fake and might have no value when redeemed.

If you get one, spend it. Retailers can't count a gift card until it gets redeemed, the NRF said, so take advantage of special after-Christmas sales. Stores also will stock shelves with new items after the first of the year so you'll have more to choose from. You don't necessarily need to spend the card right away, but the NRF recommends you do it within the first year of receiving one. If you wait too long, stores often have to treat the unused card as “abandoned” money, according to the NRF. That means retailers might have to turn the money over to the state where the card was purchased — therefore losing out on the revenue.

Keep the receipt. Some stores will reissue a lost gift card if you have the original purchase receipt, the NRF said. Many retailers also allow you to register a card through the company's Web site, which lets you check the balance online and get a new card if you lose the original.