Peggy R. Anderson

Extension Agent

December 16, 2009

Giving Gift Cards for the Holidays? Some Have Strings Attached

Starting in mid-2010, consumers will benefit from new regulations designed to restrict the ability of gift card issuers to impose excessive fees and expiration dates. But those rules don’t affect cards purchased this year, so shoppers need to make sure they read the fine print to protect themselves from hidden costs. 

If you’re buying gift cards, opt for “open loop” cards, says J. Michael Collins, Cooperative Extension family and consumer economics specialist and assistant professor at the UW-Madison School of Human Ecology. “The major credit card issuers—American Express, MasterCard, Discover and Visa—all offer gift cards.” These types of cards are available at retail stores and even online. They may be used for any purchase where credit or debit cards are accepted. 

Visa gift cards typically expire after one year and MasterCard gift cards after 24 months, according to Bankrate.com’s annual survey of gift cards. American Express gift cards have no expiration date, but impose a $2 monthly service fee after 12 months. The service fee is deducted from the balance on the card. “Be sure to let the recipient of any card know they need to use it before it expires—or they forget they even have the card at all,” says Collins. 

“Most ‘open-loop’ issuers also charge a fee to buy their cards,” says Collins. “The fees can range from $3.95 to $4.95 per card, depending on the bank that’s issuing it. If you’re buying gift cards for a large number of people, those fees can add up.” 

Many mall operators also offer gift cards that can be used in all—or most--of the stores in the mall. But they also may contain more restrictions than gift cards issued by individual retailers or open-loop cards, including reducing the amount available on the card over time. “As with all cards, be sure to read the fine print. And then read it again,” says Collins. 

If you’re buying a gift card for an individual store, be mindful that the retailer might go out of business. “Gift card holders have few rights when a retailer files for bankruptcy,” says Collins. “And with retail bankruptcies expected to rise next year, that’s a real concern.” 

If you receive a gift card, check to see if it can be redeemed online, Collins advises. And don’t delay in using it. Americans spent $88.4 billion on gift cards in 2008, but left $6.4 billion unused, according to TowerGroup, a consulting firm.

 Until the new legislation overhauling credit card practices goes into effect next summer, the key word for shoppers this holiday season is still “buyer beware.” 

Keep Active During the Holidays 

Physical activity is important all year, but it can be especially helpful during the holidays when you may be eating more than usual, according to LSU AgCenter nutritionist Beth Reames.

“In addition to burning calories, physical activity helps build muscle,” Reames says. “The more muscle you have, the more calories you burn.”

Physical activity is a good way to burn calories and can help you feel less guilty about enjoying holiday favorites, she says. Besides the benefits of burning calories, physical activity can improve your sense of well-being and help reduce your stress level.

Reames offers several ways to increase physical activity during the holiday season:

– Take a walk with friends and family after holiday meals to enjoy the  holiday decorations in your neighborhood.

– If you’re near a mall, try mall walking. Find out about special hours reserved for walkers. Do some window shopping and enjoy the decorations.

– Take a walk in the woods to collect pine cones for decorating and making outdoor bird feeders.

– Take time to play with your children or grandchildren. Try favorite activities such as cross country skiing, throwing the football or shooting hoops.

– Try some different activities, such as line dancing or an exercise video workout.

– During halftime of your favorite football game, join friends in a game of flag football. You can burn as many as 140 calories for every 15 minutes of play compared to only 71 calories for each hour of TV game-watching. Now that might be hard to do when it’s below zero, the idea is to get up and move. 

Physical activity guidelines from the U.S. Department of Health and Human Services recommend that adults get 2 1/2 hours a week – 30 minutes a day – of moderate-intensity aerobic physical activity, such as walking briskly, water aerobics, ballroom dancing and general gardening, Reames says. Alternately, the guidelines recommend 1 hour and 15 minutes of vigorous physical activity, such as racewalking, jogging or running, swimming laps and jumping rope.

“Celebrate your holidays by spending time with family and friends,” Reames says. “But consider planning time to get together that does not revolve around food.”

Schedule:

Wednesday, December 16- Minot

Thursday, December 17 – Divide County

Friday, December 18 – Burke County

Monday, December 21 – Burke County

Tuesday, December 22 – Divide County