But gift card shoppers need to be aware of sales fees, replacement costs and service fees sometimes attached to the cards.
American Express gift cards charge a $2 monthly service fee, but the company waives that fee for the first 12 months. That means consumers need to spend the gift card’s value within the first year or risk donating their gift back to American Express.
If the card is lost or stolen, American Express will replace it, but at a cost of $5.95.
Temple Mall offers gift cards through Discover.
“They are very convenient because they are accepted at all of our anchor stores and all of our vendors,” said Lisa Perez, Temple Mall marketing director.
While convenience is a perk, it doesn’t last more than 13 months. If the card still holds value after 13 months, $2.50 will be deducted each month.
Ms. Perez said that usually isn’t an issue for consumers.
“Generally, people use their gift cards pretty soon,” she said.
Kevin and Theresa Burrell of Killeen have given gift cards to friends and family living in other cities. News of fees associated with their gifts gave them pause.
“That’s robbing the customers,” Mrs. Burrell said. “If you buy a gift card, you’re giving your money right then and there.
“You paid the money for the gift card. Giving cash is cliché but in order to give the full amount of money for gifts, I would do it,” Mrs. Burrell said.
The couple often buys gift cards from American Eagle as presents for their daughter’s friends, and from Sam’s Club or Lowe’s for their parents.
Sam’s Club gift cards have no expiration dates and no additional fees after a period of time. Neither does JCPenney and Radio Shack, among others.
Last year, according to the National Retail Federation, gift card sales reached $27.8 million, with department store cards the most popular. This year they expected nearly 80 percent of consumers to purchase at least one gift card for the holiday season, and 53 percent hoped to receive a gift card.
The cost to consumers isn’t always in the form of fees. Half of the recipients of gift cards ended up spending more than what the card is worth, the federation reported.
If residents aren’t quick enough to spend their card values, the government could end up claiming their gift as well.
Gift cards can be dubbed “abandoned property” by the government after several years of inactivity, according to the National Retail Federation.
lfrase@temple-telegram.com
