Gift cards are heavily promoted by issuers and available at many retail outlets. They even entice you with offers like $50 card for $40. The worst of these cards are those valid only at one retailer such as Starbucks, Macys, Target...
Fact is it is a really bad deal for the person receiving the gift. The issuers win big.
40% of gift card recipients do not use the total value of the card.
More than $41 billion in gift cards went unused between 2005 and 2011.
There are many better ways to give a gift which actually benefits the recipient.
1. Think ahead and just send a check. This is the simplest way and these days checks can be deposited using a smart phone. Very low tech and works. These days the checks are cashed as if they are electronic transfer using ABA routing number and account number and transfer is quick.
2. Your credit union may offer Visa or MC gift card for no fee and charge the recipient a 1% fee.
3. If you are tech oriented, You can send money using services like venmo , google wallet , Square Cash , PayPal and others if you look. There may be a fee of about 3% but still way better than gift cards.
See an article here.
4. If you know for a fact that the recipient uses Amazon, it is instant to send Amazon gift card and it is no fee.
Happy gifting...
Fact is it is a really bad deal for the person receiving the gift. The issuers win big.
40% of gift card recipients do not use the total value of the card.
More than $41 billion in gift cards went unused between 2005 and 2011.
There are many better ways to give a gift which actually benefits the recipient.
1. Think ahead and just send a check. This is the simplest way and these days checks can be deposited using a smart phone. Very low tech and works. These days the checks are cashed as if they are electronic transfer using ABA routing number and account number and transfer is quick.
2. Your credit union may offer Visa or MC gift card for no fee and charge the recipient a 1% fee.
3. If you are tech oriented, You can send money using services like venmo , google wallet , Square Cash , PayPal and others if you look. There may be a fee of about 3% but still way better than gift cards.
See an article here.
4. If you know for a fact that the recipient uses Amazon, it is instant to send Amazon gift card and it is no fee.
Happy gifting...
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