Holiday 2023: 4 Types of Gift Cards to Avoid This Year

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As the holiday season approaches, gift cards continue to be a popular and convenient gift choice. However, not all gift cards are created equal. This year, it’s crucial to be mindful of the types of gift cards you purchase to avoid disappointments and ensure your gift holds its value. Here are four types of gift cards to steer clear of this holiday season, complete with examples.

1. Store-Specific Cards for Struggling Retailers

Purchasing gift cards from retailers that are facing financial difficulties can be risky. If the retailer goes out of business or significantly reduces its presence, the gift card might become worthless.

• Examples:
  • JCPenney: With numerous store closures, the future utility of their gift cards is uncertain.
  • Sears: Once a retail giant, now struggling with a significant decrease in stores.
  • GameStop: Facing challenges due to the rise of digital gaming platforms.

2. Low-Value Cards Disguised as High-Value

Some gift cards come with hidden fees or restrictions that significantly lower their actual value. These can include service fees, inactivity charges, or limited redemption options, making them less desirable as gifts.

• Examples:
  • Prepaid Visa or Mastercard Gift Cards: Often come with activation fees that can eat into their value.
  • Certain Promotional Cards: May have expiration dates or limited usability, reducing their overall value.

3. Narrow-Use Gift Cards

Gift cards that can only be used for very specific products or services may not provide the flexibility and freedom that make gift cards an attractive gift.

• Examples:
  • Specialty Store Cards: Like niche bookstores or specific hobby shops, may not appeal to everyone.
  • Service-Specific Cards: Such as spa services or car washes, might not align with the recipient’s interests.

4. Cards from Brands with Limited Physical Presence

As more shopping moves online, gift cards from brands that lack a significant online presence or are reducing their physical stores may become less appealing or convenient.

• Examples:
  • Gap and Banana Republic: Closing physical stores and shifting focus online.
  • Best Buy: Competing with online electronic marketplaces, reducing the allure of their physical store gift cards.

When selecting gift cards this holiday season, consider the stability and versatility of the retailer, the actual value of the card, and the preferences of the recipient. Opting for versatile and stable choices ensures your gift will be both appreciated and useful. Remember, a thoughtful gift card can make your holiday gift-giving both stress-free and joyous.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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