Savvy shoppers save money with gift card offers

With each holiday, I see an increasing number of bonus gift card offers. They go something like this: Buy a gift card for a specified dollar amount and get a lesser gift card for free. Savvy shoppers can take advantage of these incentives to save a few pennies.

For Example:

For example, my local Safeway is offering a $10 coupon on my next shopping trip if I buy $100 or more in Visa Gift Cards. Now, Visa gift cards typically have an activation fee. But if the activation fee is less than ten dollars, then I could earn a few bucks just by buying the gift card. But do I need a Visa gift card? Sure. Here is how you pocket a few dollars without buying unnecessarily.

Take Advantage:

• Buy a Visa gift card for your personal shopping–an upcoming vacation or just daily expenses. You’re spending the money anyway. Putting your money on the gift card first simply allows you to get the bonus groceries.
• Buy a Visa gift card to put kids on a budget. Got kids going off to college, in need of spending money, or wanting to do a little back to school shopping?  With a Visa gift card, they can shop anywhere they want, but have to stay within the limit of the funds on the gift card.
• Plan ahead and buy gifts early. Think about upcoming birthdays, weddings, or even holiday shopping. If you’re going to spend the money in the near future, might as well save on groceries while you’re at it.

Expiration Dates?

One word of caution is to check the expiration dates. Thanks to gift card laws changing in August, the gift card you buy will be good for at least five years so you don’t have to worry about shopping too early. But the bonus gift card (in this case coupon), is likely only to be good for a specified period of time. So check restrictions before you buy.

Think Ahead

If you’re buying more than one gift card, you might need to do it in separate transactions so you can get the bonus for each gift card purchased–rather than one bonus for the total number of gift cards you buy. Check with the cashier to see if there is limit so you don’t over strategize.

With the kids home for summer, my once quiet work-from-home mornings have turned into a swirl of Legos, Wii games, flying Nerf balls, flying Legos, and a constant barrage of tattle-taling (You don’t want to know about my new threat, ominously called, “The Tattle-Tale Treatment.”). I can barely remember what day of the week it is, much less get anything done. And just when I feel guilty about that, I remember that it’s summer–my kids are old enough to remember the days we share, and young enough to still want to share them with me. What a treasure.

Another Treasure

So today, I shook my head in shame and then threw my arms into a double fist pump when I found an unused movie theater gift card tacked to the bulletin board in my office. ME, the one who spends her days obsessing about gift cards, forgot I had one. Unacceptable!

Then the self-loathing mixed with euphoria turned to anxiety as I wondered if the unused gift card would still be usable. On the back of the gift card, I found a web address on which to check the balance. Thankfully, I still had $21 to spend at the movies. (Back to the fist pumping!)

No More Worries

The good news – as of August 22, 2010, gift card laws are changing in a way that you’re less likely to feel anxious about unused gift cards. The new law says that gift cards can’t expire in less than five years and you can’t be dinged a non-use fee for at least a year. Most importantly, in my opinion, terms such as these must be clearly specified on the card before purchase. No more wondering.

So if I ever find another unused gift card in my possession, I won’t have to worry or wonder about whether or not I can still use it.

Now, my friends…Shrek 3, Toy Story 3, or Karate Kid? Any help here?

Read the back of the gift card to learn about possible fees and expiration.

In 2009, laws went into effect that prohibit gift cards from expiring before five years from the date of purchase. Some states enacted stronger laws and those take precedence over federal. (You can check your state laws here.)

In my opinion, the most important change is that terms of expiration must now be clearly and conspicuously stated on each gift card. So I always flip over gift cards to check for gotchas before purchase. As companies come into compliance, finding this information has gotten easier. For example, at Target, gift cards clearly state, “No fees. No expiration. No kidding.” That makes it easy.

Be aware, however, that rebate gift cards are different. For example, if a store offers you a free $10 gift card with the purchase of a $25 gift card, the $10 bonus card (or rebate) may only be valid during a specified time period. Certainly, this information should also be marked. Though you can keep the rebate gift card for yourself, it’s also fine to give it to the recipient along with the other card–making sure to point out the difference.

Admittedly, I’ve tripped over this one myself. My husband and I received a gift card plus rebate card to Benihana. But we didn’t notice the rebate gift card could only be used during a certain time frame until after we’d polished off our Splash ‘n Meadow combos. Oops.

Though fewer gotchas exist, it’s still a good idea to look for terms on any gift card you purchase. If you can’t find that information clearly marked, pick another card. Doing so will be just another way to ensure the recipient gets the most out of your gift card gift.

Read all of my gift card rules:

• Gift Card Rule #1: It’s Not About You

• Gift Card Rule #2: Location, Location, Location!

• Gift Card Rule #3: Buying Power

• Gift Card Rule #4: Avoid the Gotchas

• Gift Card Rule #5: Something for Now and Later