More people give the gift of choice

For Leah Ingram, an etiquette specialist in New Hope, Pa., cards are her favorite gift to give and to receive. But she offers a caveat. "My only complaint about gift cards involves the ones you buy from credit-card companies or for a mall. You have to pay a service charge to get one."

At American Express, buyers pay a $3.95 fee per gift card, plus shipping and delivery for cards purchased online. For MasterCard and Visa gift cards, fees vary, because they are set by the bank issuing the card.

Some recipients are surprised to find that they must pay a monthly fee after a certain period of time has elapsed. "We encourage our gift-card customers to make sure they fully understand what fees may or may not be associated with these cards," says Ron Hynes, vice president of prepaid services at MasterCard.

Gift cards tied to credit cards can sometimes be replaced if they are lost or stolen, although a service fee may be imposed.

"If you have registered the card, there is the ability to replace it," Mr. Hynes says. "If you have not registered, there may not be a way. In the same way, if I drop $20 out of my pocket, I have no one to go to to get my money back."

He advises users to read the terms and conditions as soon as they receive the card and check the expiration policy. Record the card number and the customer service telephone number, and keep the information in a safe place. Use the card promptly. Check the card balance before heading out to shop. Most cards offer a phone or Web option to do this. And keep the card even after spending the full amount, in case it is necessary to return merchandise.

Some fans of gift cards buy them for their own use. Steve Sultanoff of Irvine, Calif., a professor of psychology at Pepperdine University, eats out often and uses many restaurant gift cards. He is always on the alert for special offers for gift cards. Some promotions come from restaurant chains. He recently bought a $25 card with a $5 bonus added by the restaurant.

Various AM radio stations across the country also use gift cards as promotions, Mr. Sultanoff says. On one promotion for Outback Steakhouse, he bought a $50 gift card for $25. After adding several dollars for postage and handling, he says, "It comes out to be about a 45 percent discount."

Using gift cards to make online purchases can sometimes involve restrictions. As one example, Sultanoff discovered that Barnes & Noble would only accept one card for each online purchase. "If you have four $25 gift cards, you have to make four separate online purchases," he says. In such cases, he goes to a Barnes & Noble store and trades them in for a $100 card, then uses it online.

Although gift cards are available at discounts through online auctions, Sultanoff and others caution against buying this way because of possible scams. These gift cards are more likely to be counterfeit or obtained fraudulently.

For some employers, gift cards serve as a way to thank workers. Amish had a boss who offered gift cards at restaurants and bookstores as a reward for a job well done. "Most certificates were for $50, and they were pleasant surprises," she says.

Despite the popularity of gift cards, some stores find them a mixed advantage. Consumers who buy them spend less time shopping and make fewer impulse purchases, retailers say.

Even gift-card enthusiasts must often overcome initial hesitation. "When the trend first started, I thought that buying gift cards was impersonal and cold," Hatch says. But recipients' enthusiasm soon swayed her. To avoid that impersonal feeling, she will buy a small personal gift to include with a gift card.

For regular gift-card givers like Hatch, a card is also one of the best gifts to receive. "I love the convenience of 'plastic money' to use whenever I like," she says. "It's really great after Christmas during the sales. You can purchase more for the money."

As she and others enjoy the ease of buying gift cards this season, some may find that those on their list take an equally relaxed approach to receiving them. According to American Express, more than two-thirds of gift-card purchasers do not expect to receive a traditional thank you note, call, or e-mail from the card's recipient.

Emily Post might not approve.

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