Gift Card Sales Jump to the Top

For the first time ever, sales of gift cards will exceed sales of toys during this holiday season. The NRF projects gift card sales will exceed $24 billion dollars during the holiday season alone, a jump of over 30%, and overall gift card spending for the 2006 is projected at $80 billion.  

Consumers are warned to be wary of the fees attached to use of so called "Universal" cards which are good at a variety of stores. Small retailers would do well to ride the trend towards gift card giving by offering their own programs and emphasizing the lack of fees.

The Portsmouth Herald quotes  Brian Riley of the Tower Group as saying "There is a big disconnect between the cost of gift cards and the fees charged by banks. There is no practical reason to say, I need the maintenance fee.' That doesn't cost the company to keep an account on their databases. And why even have an expiration date? When you give a card for $100, you expect it to be there."