What are the pros and cons of gift cards,

[Suich]

namely Visa and Mastercard? I usually get my friend one from Trader Joe's, Lowe's, etc. I thought it might be nice to get one that could be used at a restaurant, or wherever.

Thoughts?

TIA!

[NYC_SKP]

1. I can think of only two arguments against:

One, they are less personal and indicate, perhaps, less forethought than getting a HomeDepot card for that do-it-yourself friend, or a Dick's Sporting Goods card for that sporty friend.

Two, some people are against the big banks, why give them business? I wonder if there's a good list of fair-market or progressive outlets that offer gift cards.

[haele]

4. One of those payday loan places in a local IGA strip mall advertises to buy active gift cards.

Of course I live in the 'hood, so I'm definitely not sure if it's on the up and up, and isn't just a quick fence front for some of the more sophisticated gangs or burglars.
I'm sure at most one would get back 1/4 of the worth of the card.

Haele

[NYC_SKP]

6. You're close, this one place pays only 50% of the value of the card.

Others might be less.

http://www.your-exchange.com/faqs-gift-cards.html

[Locut0s]

7. Yeah might be legit, but also sounds like a quick way to launder money...

When I worked at 7-11 some years back one of the difficulties we had with these cards was people stealing them off the rack then coming in later saying some sales associate at forgotten to activate it. Sounds like you'd be a fool to fall for it but you'd be surprised how persuasive and crafty some of these guys could be.

[pipi_k]

9. One other con...

is if the gift card/certificate is for a small local business where there's a good chance the business could fold.

I got saved from making that mistake during the summer when I thought about paying a few months in advance for some Taekwondo classes for my grandson, but didn't because I wasn't sure he would like it. The place had been there a while, but less than a month after he enrolled it was gone. Disappeared into the mists...

So anybody getting a gift card for a local business should absolutely use it ASAP.

[Locut0s]

2. I agree with NYC_SKP, there aren't too many cons...

Only one I can think of he listed, that it might seem impersonal. They are perfect for those that are hard to shop for and where it's the thought counts more than the gift itself. I'd stay away from them as main gifts for very close family or your significant other as you probably want something that speaks from the heart there. But otherwise I don't see anything wrong with them.

Ohh, one small side issue is that it forces them to have to shop at places that accept CCs. There still are some cash only places, but not too many.

[haele]

3. Depends on how close you are to the person and if you know they'd like something else.

The kidlet wants cash for Xmas, doesn't want gifts unless you purchase them off her Amazon Wish List. Picky about clothes, hasn't nailed down "a style", and her size yo-yos constantly, so if you bought clothes, there's a 90% chance it wouldn't fit when she tried it on and it would end up in a corner until she collected clothes to trade in, never worn.

So my mom, who doesn't do online shopping (grew up in the depression and doesn't trust the internet with her money) gets the kidlet a $50 Visa or similar gift card (she goes to the base PX with me a lot, so a PX card covers pretty much anything she wants), and she can purchase what she thinks she needs. Her boyfriend is the same - give them money so they can get what they want or pay off a bill that's hanging over their heads. Socks, clothes, home-made items or knick-nacks don't mean very much to them. They just want shopping therapy or emergency stash (make sure if you get a Visa, it's good for at least a year for that purpose).

So a card might work for some. However, lots of us old fogeys to whom "the thought is what counts", prefer something to remember the giver by.

Haele

[tabbycat31]

5. I would not do them

If you are going to do a giftcard, do so for a store that said person likes to shop at.

I was at Target this afternoon and saw them for sale in the checkout. A $25 Visa gift card cost $29. When I worked in retail (2006 was the last year--- at a Big Box store), our POS systems were not set up to take those cards if the transaction was higher than the value of the card (even by a penny). Not sure if they've updated or not.

If you're going to give $25, write a check or give cash. Why spend $4 extra to do so? (If it were say $1000 and you were worried about security, I'd think differently).

[Suich]

8. THANKS for the advice!

The "friend" is my next door neighbor for the last 20 -25 years. If I could think of one thing he or his wife want, I would get it!

I think I'll go with a Trader Joe's gift card...after all, why give the banks any more money?

Thanks again!

[LWolf]

10. It depends on the culture of gift giving in your family.

A gift card is impersonal and requires very little in the way of time or thought for the person you give it to. If the holiday is about your personal connection to people, a gift card is inappropriate.

If, though, you belong to the tribe that thinks nothing of showing up to return a gift the day after getting it, so you can get credit to get what you want, then a gift card is obviously a better way to go.

I have NEVER returned a gift given to me. I have sometimes, I admit, passed it on to someone else if it didn't seem right for me, but most often, I keep and use it anyway, because I appreciate the thought.

On the other hand, the one gift card I've received that I LOVE is a Barnes & Noble or Powell's card. My family, knowing me to be a bibliophile, will sometimes throw a card in with whatever else they chose.