The Art of Returning Gifts

Dec. 26, 2007 — -- So Santa didn't bring you exactly what you wanted for Christmas and now you're headed to the store to return or exchange your gift. In fact, about 40 percent of Americans return at least one holiday gift annually.

"Good Morning America" contributor Wendy Bounds tells you how to ensure your return carries the least amount of hassle. Check out her tips below before stomping off to the store.

The Best Time to Return Gifts

Despite what most people think, the day after Christmas is not necessarily the best day to return gifts. Some great sales will start today and some stores will open early to accommodate working folks. So, if you are someone who's just got to have something to play with and you are game to battle the crowds, have at it.

However, keep in mind that most sales will likely run through New Year's, with some good ones popping up in January. If your return policy allows it, and you aren't going to be bummed without a gift to tinker with, you may want to wait until after Jan. 1.

That said, keep two things in mind. You need to know when the gift was purchased because that's when the return clock starts. Also, you need to know what the return policies are. They vary vastly from store to store and for different items.

Generally major retailers have 30- to 90-day limits on most merchandise returns, with some important exceptions. Electronics, for instance, typically need to go back within 15 days or so.

Why the Rules Have Become More Strict

Retailers are losing about $3.7 billion to fraudulent returns. This includes the thieves who steal merchandise and return it for store credit and those miserly customers who wear or use something once and then return it.

Major retailers are now cracking down on these repeat returners by tracking them on a computerized blacklist, which is an electronic wanted poster. Some stores are limiting customers to just three returns within any 45-day period without a receipt.

If you think you've landed on the list unfairly, you can try to appeal by e-mailing the return exchange, a company that helps monitor returns for retailers.

Avoiding Return Rage

First and foremost, protect that package. If you even think about returning that toaster cozy from Aunt May, don't open the box. Many stores charge 15 percent to 25 percent for a restocking fee for certain items when you open the package.

If you just had to open the box to see what a toaster cozy is, keep the box in good shape. For clothes, leave the tags on and don't wear perfume or makeup when you try it on. Also, never take clothes or shoes on a test drive because stores may refuse to take back garments that look soiled or used.

Keep all the gift receipts you receive. Returning electronics without a receipt is really tough. Don't be shy about asking the gift giver for the receipt. It's not always the easiest thing to do, but at the end of the day, most people would rather you have something you'd love and actually use than to have the gift — and their money — collecting dust.

Online Returns

Some online retailers with brick-and-mortar stores will allow you to return gifts purchased online to stores, which is much more convenient than shipping it back. Check the Web Site's fine print to see if this is an option. Web-only deals, however, may need to be returned online only.

When the Store Won't Accept the Return

Some credit and charge cards have return protection guarantees, which means the card company will refund some of the purchase price if a store balks at taking back an item.

For example, American Express offers a protection guarantee up to $300. It's a last-case scenario, but definitely worth a try. Read the fine print on the back of your bill to see if your card offers this protection.

Swapping Gift Cards

According to one survey, consumers lost nearly $8 billion last year because of unredeemed cards — letting them expire, losing them or just plain not using them. It's estimated that 7.8 billion cards will go unspent this year, and two-thirds of the shoppers who use their gift cards will do so after the sales, when items are at full price. It's a real win-win for retailers.

However, new sites are cropping up to help shoppers get the most out of their gift cards. For example, if you received a Home Depot gift card when you're really more of a Victoria's Secret shopper, several sites will let you swap cards online.

The newest, leveragecard.com, lets you register your gift cards on the site to keep tabs on the spending amount left on each one. It also allows you to buy gift cards or swap them for a card at a store that's more to your taste. For each card registered on the site, leverage will pay interest on the card's value — 1 percent on cards from other retailers and 3.65 percent for cards bought on the site.

Similar sites like swapagift.com and plasticjungle.com also will let you collect cash for 50 percent to 70 percent of the face value of the card.

Being Charitable While Returning Items

Fifteen billion dollars in spare change is expected to change hands this holiday season. So instead of letting it collect in the bottom of your purse or your jacket pocket, why not give it to charity?

This year many retailers are using something called change for charity at their cash registers, which let consumers donate the spare change from a cash-based return, which a retailer can then aggregate and donate to selected charities.