» Posted by Martin Weil on December 01, 2009

It's that time of year when I like to reprint this basic message - gift cards are generally a consumer rip-off. Let's count the ways:
1. Many cards impose fees - sales fees, service fees, monthly fees. This is money that is gifted to the company, not your recipient
2. Some cards expire- all the money goes to the company
3. Lose your card? Likely that money is in someone else's pocket
4. Some companies go bankrupt - good luck with that
5. An enormous percentage (25-35%) of gift cards are never used at all. Again all your gift goes to the company.

If you want to support the economy, go out and shop. If you want to give money, try cash. If you have to give a gift card after all this, think one more time. After that, if you still have to go this route, make sure it is one with no fees or expiration date and that your recipient will have a use for it. If it doesn't say "no fees" right out front, walk away. Amazon, iTunes and Starbucks (no endorsement implied) are among the major retailers who offer no-fee, no-expiration cards.

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