Gift Cards Have Greater Value This Holiday, Among Most Requested Presents

The Retail Gift Card Association offers consumer gift card tips: what's new this year, why the cards are better and are certain to please any recipient this holiday season

MIAMI, Nov. 23, 2010 /PRNewswire-USNewswire/ -- When value is paramount, giving a gift card is the guaranteed way to ensure a gift will be appreciated and used. This year, thanks to changing financial legislation, retail gift cards are more consumer friendly than ever before. Because of this and new innovations from retail gift card providers, this holiday season the products are set to be some of the most gifted presents yet again.

Retail (or "closed-loop") gift cards can be used for goods or services from the businesses selling them. These are the most-purchased type of prepaid card. According to the National Retail Federation (NRF), Americans will spend an average of $145.61 on gift cards this holiday season, up from $139.91 last year. Total gift card spending is expected to reach $24.78 billion. The NRF also found that gift cards remain the most requested holiday gift this year, marking the fourth year in a row that gift cards have topped consumers' wish lists.

"Retail gift cards are the tried and true holiday presents that are sure to delight, which is even more crucial this season considering the consumer demand for value," said Rebekka Rea, Assistant Director of the Retail Gift Card Association (RGCA), a member organization committed to promoting and protecting the use of gift cards. "RGCA members have never had expiration dates or dormancy fees, however, this year consumers can get even more out of their gift cards, thanks to the Card Act which guarantees that the card values will never expire, and by using the cards to shop after the holidays, when greater discounts may be found."

The Retail Gift Card Association (RGCA) offers the following tips for consumers shopping for or receiving retail gift cards this holiday season:

• Fear not, gift cards now have longer periods before expiration and the value NEVER expires: Beginning this year, gift cards cannot expire for at least 5 years, thanks to new legislation. Additionally, even when the card does expire, the balance remaining on the card can be claimed.
• Give gifts that are virtual or mobile: Many retailers now offer a host of modern delivery methods, including gift cards that can be purchased and/or delivered via social networks, mobile phones, email, texts, etc. This innovation allows consumers to give gifts in ways that are tailored to their recipients' habits. Check out retailers like SpaFinder, Cabela's, Lowe's Home Improvement®, and Nike which are offering gift cards with these new features this season.
• Seek out gift cards that are as unique as your gift recipients: Although many consumers buy gift cards to keep on hand for any gift-giving situation, many may enjoy personalizing the gifts for specific friends or family this holiday. This year some gift cards offer additional fun features and personalization options. For instance, beyond just gifting a card from a favorite retailer or restaurant, some cards can now be personalized with a written or voice message like Bass Pro Shops and Applebee's, a movie and a meal combo card from Darden Restaurants and Fandango or even in a delectable peppermint scratch-and-sniff flavor from Staples.
• Get greater value out of your gift card: Wait for sales or specials from the retailer, often occurring after the holidays, to get even more out of your present.
• Select a card that gives back: Numerous retailers are making charitable donations with the purchase or usage of gift cards this season, such as the (STARBUCKS)RED Card. Every time a customer uses this card to make a purchase at Starbucks, five cents will go to the Global Fund to help save lives in Africa.
• Monitor your gift card's balance and expect fewer fees: The retailer providing your gift card can always tell you how much remaining balance is on the card, and some even offer online monitoring. Ensure the entire value of a gift card is used up before you discard it. Additionally, thanks to new rules, don't worry about incurring any inactivity fees for at least a year after the last use of the card. Need more information? Every gift card must now include on the card: disclosure of fees, expiration date and a toll-free telephone number or website.
• Only buy gift cards from reputable retailers: For complete confidence, buy gift cards from members of the RGCA (http://www.thergca.org/MEMBERS.php). These retailers have never had dormancy fees or expiration dates and are committed to consumer friendly practices. Also, avoid buying cards from consumer-to-consumer auctions.
• Keep the receipt: If giving a gift card, give the receipt as well. If you receive a gift card, keep the receipt in a safe place. Most retailers will replace the verified balance remaining on a card if it is lost or stolen as long as you have the receipt. Also, register your card online if the retailer offers this option, which can also help in replacement if the card is ever lost.

About the RGCA

The Retail Gift Card Association is a member organization of diverse, closed loop gift card retailers committed to promoting and protecting the use of gift cards. RGCA members follow a code of principles which promotes best practice standards to help the industry grow and shape it in ways that benefit both members and consumers.

For a complete list of RGCA members, more information about the Retail Gift Card Association or how to become a member, contact Rebekka Rea at 405-475-2902, [email protected] or visit www.theRGCA.org.

SOURCE Retail Gift Card Association