Get the Most From Gift Cards This Season

Dec. 12, 2007 — -- With only 13 days until Christmas, shoppers continue searching for their perfect holiday presents and many — 56 percent according to the National Retail Federation — are opting to purchase a gift card.

Shoppers will spend a record $26.3 billion on gift cards this holiday season, which is an increase of 6 percent from last year, according to the NRF. That translates into the average consumer spending $122.59 versus the $116.51 doled out last year for gift cards, the NRF said.

"Good Morning America" contributor and Wall Street Journal editor Wendy Bounds wants to help you get the most out of your gift cards and explains the newest options in gift cards and what to watch out for when buying them.

One gift card allows you to give the gift of health. The card, which is from Pittsburgh Health insurer Highmark Inc., helps pay for your health. Whether it is prescription co-payments, elective surgery like Botox, Lasik or teeth whitening, you can use the card. It even covers gym memberships and is available from $25 to $5,000. For more information you can visit www.givewell.com or call 877-850-3774.

You go to Starbucks and get a card with a number. Then you can personalize your card online with the name of the recipient or their favorite drink.

The Home Depot gift card comes with a built-in level and tape measure. While it's not ideal for using to hanging dry wall, you can throw it in the kitchen drawer with your scissors and so forth and pull it out in a pinch. The essence is that you're getting more than you bargain for when you're buying this kind of card. It will stand out more than any other kind of card.

American Eagle sells gift cards that come with holiday songs recorded on them, as well as the ability for customers to record their own holiday messages.

Best Buy has a programmable card that lets users type in six messages, up to 256 characters each. They also have a snap-on card that forms a bracelet so you can wear your gift card.

In some cases, getting personalized cards costs you extra money. For example, Starbucks has a $4 fee for personalized cards and in some states, the cost can rise to $5 due to state taxes. That extra money could buy a tall soy mocha latte.

According to one survey, consumers lost nearly $8 billion last year because of unredeemed cards and it's estimated that of the cards bought this year, $7.8 billion will go unspent, according to the Massachusetts-based research firm Towergroup.

Also, an October survey by the Consumer Reports National Research Center found that 27 percent of last holiday season's gift card recipients still have at least one unused card sitting around.

Make sure gift cards come without an expiration date, depreciation value, shipping charges and any fees.

Don't buy cards where the security code is visible because in recent years crooks have been going into stores, copying down a card's number and security code and dialing the 800 number until they find the card has been activated. Then they buy with that card online.