MONTVALE, N.J., Nov. 17 /PRNewswire/ -- Branded gift cards that carry the American Express, Discover, MasterCard or Visa brand marks are some of the most popular gifts for the holidays and 2009 is shaping up to be no exception.

Branded gift cards are more convenient and versatile than gift certificates or store gift cards because they are accepted virtually anywhere a merchant accepts the brand logo, even online. Since they can be used at millions of locations, branded gift cards are unaffected by store closures or bankruptcies. They are also safer than cash, because the funds on registered cards can be recovered if the card is lost or stolen.

"Surprisingly, the research is very clear that recipients prefer to receive gift cards over cash because the cards give them the opportunity to do some guilt-free shopping," said Dan Horne, Professor Providence College. "Cash becomes mixed in with household funds and gets used for gas or the utility bill and then is promptly forgotten. It doesn't create that lasting memory that makes a gift something special."

The Network Branded Prepaid Card Association (NBPCA) is a nonprofit, inter-industry trade association dedicated to providing consumer education about prepaid products in order to ensure positive consumer experiences. This includes promoting an understanding of the features, benefits and costs associated with the products.

"Big changes have come to the gift card industry this year including new card features like fun and festive packaging and technologies including nearly all retailers being able to perform split tender transactions, making gift cards more attractive and easier to use than ever before. The prepaid gift card market has also become highly competitive, and as a result has attractive pricing changes," said Kirsten Trusko, NBPCA President and Executive Director. "We encourage even the most seasoned gift card veterans to take a few minutes to read the card literature to ensure selection of the right card for each gift recipient on a holiday list."

To promote great experiences with branded gift cards this holiday season the NBPCA has released a 7 Step Guide to Giving and Receiving Branded Gift Cards:

Step 1. Shop Around. This is a year of great change for branded gift cards. Providers are offering options such as personalization and fun packaging. Also, increased competition means new attractive pricing for gift cards. Don't just grab the card you buy every year, grab a few (or do your research online) and read about what they each have to offer.

Step 2. Do your part - read the terms and conditions. Read the information that comes with the card as soon as you receive it. Card terms are quick to read and clearly disclosed in a short statement on the card or the literature that comes with the packaging. While 90-95% of consumers who use gift cards are never charged a fee, your card could come with a charge for customer service calls, replacing a card or a balance inquiry. If you know what you will be charged up front, you can modify your behavior and avoid any surprises.

Step 3. Keep your card secure. Safeguard your card. If it is lost or stolen, report it immediately to the customer service number. Cards can be replaced if lost or stolen. Immediately after you purchase or receive your card, record the card number and customer service number. Also, it is a good idea to give the recipient of a copy of the card purchase receipt to verify the card's purchase.

Step 4. Use the card within one year. A good rule of thumb is to use the card within one year. This prevents you from forgetting about it and potentially accruing inactivity fees. Branded gift cards can be used virtually anywhere and come with standard customer service, fraud and loss prevention and other features that store-specific cards may not have. Cardholders that don't use the cards within a year can be charged fees to pay for those services.

Step 5. Keep track of your balance. Check how much money you have on the card before going shopping. Most cards offer free online balance tracking, text alerts or telephone alerts. If you are making a purchase that is larger than the amount available on your card, tell the cashier in advance. Most retailers have no trouble conducting split tender (pay part of the transaction with a card, the rest with another source of funds) transactions today. If you have experienced problems with split tender transactions in the past, try again. Most retailers' systems have been updated to take split tender in the last year.

Step 6. Use your gift card to shop online. One of the best parts of getting a branded gift card versus cash is the ability to shop for incredible deals and unlimited selection online. Enjoy post-holiday sales from the comfort of your home by using your card to shop online. You can avoid crowded shopping centers and long lines at the registers.

Step 7. Consider charity. If you have a prepaid gift card with a few dollars remaining, consider returning the act of giving with a gift to charity. New organizations such as GiftCardGiver.com collect and distribute cards to non-profit organization and charities.

About the NBPCA

The Network Branded Prepaid Card Association (NBPCA) is a nonprofit, inter-industry trade association that supports the growth and success of network branded prepaid cards and represents the common interests of the many players in this new and rapidly growing payment category. The NBPCA's members include financial institutions, card organizations, processors, program managers, marketing and incentive companies, card distributors and law firms. The NBPCA's Working Groups drive the activities of the Association for its more than 42 members. For additional information, visit www.NBPCA.org.

SOURCE Network Branded Prepaid Card Association

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