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NEW YORK (CNNMoney.com) -
It's convenient. It's easy. And more than half of us want one. We're talking gift cards.
While gift cards may have been seen as the lazy man's gift not so long ago, the popularity of these cards have taken off. But before you invest in these plastic panaceas, make sure you know about all the fine print. In today's top 5 Tips, we're going to give you the ins and outs of holiday gift carding.
1. Go for store specific cards
If you're thinking about giving a gift card this year, use a store-specific card that has fewer fees than open-ended gift cards or general purpose cards like American Express,Visa or MasterCard. With these cards, you'll be paying a purchase fee as high as $10.95 if you use a gift card issued by a credit card company, according to Bankrate.com.
And if you receive a gift card, but just haven't been able to redeem it, you could be paying fees for not using your card. These dormancy fees can run up to $5 every month, and they can kick in after about 18 months according to Dan Horne, a retail professor at Providence College.
2. Expand your expiration
Some cards expire in as little as six months, but you may have some wiggle room. If you find that gift card that sat in the back of your closet for two years, just ask that retailer to honor the value. Retailers have trended away from the use of expiration dates, says Horne, and no store wants to create a bad impression with a customer.
Some states like California, Massachusetts, Washington and New Hampshire have passed laws eliminating gift card expiration dates. For details on the gift-card laws in your state, contact your state's attorney general.
All four cards backed by the major credit card issuers -- American Express, Visa, MasterCard and Discover -- have expiration dates. If you still have a balance after the expiration you may be able to get a replacement card. But the fee for doing so can be as high as $10, according to Bankrate.com.
3. Unhappy? Think charity
If your gift card was way off-mark, say a gift certificate from a toy store when you don't have any children, you're not going to have much luck cashing in that card.
There are Web sites where you can sell your gift card or buy someone else's gift card, but these sites don't guarantee that your purchase will be free and clear of fees and other conditions.
Instead, use your gift card to buy something you can donate to charity. This way you'll be able to get a tax deduction.
4. The devil is the details
Read the back of the card to get the rules of the road. All that packaging around your gift card may hide the fine print written on the back of the card.
There may be some things that your gift card won't cover, like gas, says Kristin Arnold of Bankrate.com. Companies by law have to disclose the exemptions of the gift card policy on the back of the card.
If you're thinking about getting mom a gift card for a spa or dinner on the town, make sure you choose an establishment that's going to stick around for a while.
If you get someone a gift certificate, and that restaurant isn't around anymore by the time they use it, you're out of luck, says Hane. "You can't recoup your losses."
If a company changes management, it can't hurt to ask if they'll honor your gift card, says Horne. But don't hold your breath.
5. Give them the sky
This year you can give the gift of travel to someone else. American Airlines and Southwest Airlines will offer gift cards for airline travel. You can buy these gift cards either online or at stores like Safeway in amounts ranging from $10-$1,000.
American Airlines and Southwest gift cards don't expire, but they are non-refundable. If a route is dropped from a particular airline, Southwest says they'll make accommodations for a refund.
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For all the latest top 5 Tips columns, click here.
Gerri Willis is a personal finance editor for CNN Business News and the host for Open House. E-mail comments to 5tips@cnn.com.
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