Gift cards are one quick way to get through your last-minute holiday shopping list. But before you give (and get) gift cards, here are a few things you need to know.

• Inspect gift cards before you buy. A gift card should have all its protective stickers in place. Report the card to the store if anything looks scratched off or damaged.
• When you buy, save the receipt. Keeping the gift card receipt can be helpful if you run into problems with the card. 
• Treat gift cards like cash. Report a lost or stolen gift card to the card’s issuer immediately. Most card issuers have toll-free numbers you can find online to report a lost or stolen card. Depending on the card issuer, you may even be able to get some money back.
• Buy gift cards from sources you know and trust. Think twice about buying gift cards from online auction sites, to avoid buying fake or stolen cards.
• Read the gift card’s terms and conditions. Know the deal you’re getting with gift cards. For example, are there fees every time it gets used – or if it sits unused?

And here’s the most important gift card tip of all:

• Remember that gift cards are for gifts, not payments. Gift cards are a scammer’s favorite way to steal your money. Anyone who demands that you pay them with a gift card, for any reason, is always a scammer. This includes calls from imposters claiming to be a family member with an emergency, calls from the IRS and Social Security, law enforcement, and utility companies. Simply, never pay with a gift card.

Report gift card scams directly with the card issuer, then report it to the Federal Trade Commission at ftc.gov/complaint.

For more information, click here.

Teaching Suggestions

• Ask students if they have ever given or received a gift card. If so, let them describe their experience.
• Make a list of differences between a traditional debit-card and gift cards.

Discussion Questions

1. Why is it important to inspect gift cards before you buy them?
2. What are some of the disadvantages of gift cards?
3. What happens to a gift card holder when the retailer/issuer goes bankrupt?