I Won’t Be Handing Out Gift Cards This Christmas. Here’s Why

illustration of someone giving a gift card — (Image credit: Getty Images)

“If in doubt, get a gift card.” Not my advice, but the words of my 12-year-old when we were discussing what we should get his friend for Christmas.

He’s right, to an extent. Once kids get too old and too cool for toys, you’re entering into a bit of a no-man’s land gift wise (unless they’re into the ultimate failsafe, Lego). So it’s arguably safer to give them the means to choose their own present. We’ll get a card from a trusted online retailer, and I’m pretty sure it’ll go down well with the friend in question.

Aside from kids and teens, though, gift cards aren’t always well received. Some people consider them unimaginative or even thoughtless — the equivalent of stuffing some cash in an envelope. And it’s true that I don’t generally give gift cards for Christmas.

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Here’s the reason though — and it’s nothing to do with money etiquette or being a Scrooge. It’s just that gift cards can turn out to be a massive headache, and that’s not something I want to give to anyone.

Where I live, in the UK, the high street — what we call the main retail area in any town or city — has been in decline for years, with many well-respected stores and restaurant chains suddenly going bust, even before the pandemic. That’s turned far too many gift cards into redundant pieces of plastic.

If you’re dogged about it, you can try to get the money on the card back from what’s left of the business, or its administrators, but your chances are slim. If the gift was bought with a credit or debit card, the cardholder may be able to get their card company to reverse the charge, as you can in the U.S., but that also takes time and effort.

It’s a similarly challenging time for businesses in America. Consumer habits are changing, and as more people shop online, order in and shun sit-down restaurants, even big names are feeling the heat. Consider TGI Fridays, which has filed for bankruptcy and is liable for around $50 million in unused gift cards and certificates.

Choose a gift card wisely

So, what should you do if you’d still like to give a gift card this Christmas? To guarantee your money won’t go to waste, it’s safest to buy cards from the biggest names with the best reputations.

You’ll know which ones the recipient likes, but it’s an especially good bet to pick a department store to widen their choices when they eventually go shopping. According to YouGov US, the most popular department store for baby boomers and millennials is Costco, while Gen Xers prefer Kohl’s. Best Buy is also a good option as it has a wide range of products. Or, use our guide to the best gift cards to find one that’ll be appreciated.

A word, too, on expiry dates. While gift cards here in the UK can have pretty short lifespans and may expire in two years, that’s less of a problem in the U.S., which has better consumer protection. While state laws vary, under federal law, money on a gift card can’t expire for at least five years from the date the card was purchased, or from the last date any additional money was loaded onto the card. (Those TGI Friday gift cards? They never expire.) Remind the recipient to keep the card in their wallet so it’s less likely to be forgotten, but give them the original receipt in case the card is lost or stolen.

And lastly, without getting too Downton Abbey-etiquette about it, if you’re reluctant to give a gift card at Christmas because it seems a little, well, “inelegant,” you can make it less transactional by wrapping it up with the receiver’s favorite chocolates, a small jokey gift or just a handwritten note — anything to let the person know you’ve thought about them. After all, isn’t that the real point of holiday gift giving?

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Charlotte comes to Kiplinger with more than two decades of experience in print and online journalism in the UK, with a focus on consumer rights, personal finance and law. She has worked for leading consumer rights organisation Which? and the UK government, and studied modern and medieval languages at the University of Cambridge.