Gift cards have plenty of benefits -- they're convenient, they're never the wrong color and they fit perfectly inside an envelope. But they do have one major drawback: Recipients know exactly how much you spent on them.
Or
do they?
Though
the fact is rarely advertised, gift cards can be bought for less than they're
worth. You might be able to buy a gift card for half price -- or even less --
and your recipient will be none the wiser. (Unless, of course, that recipient
is you.)
If
you know how and where to shop -- ranging from grocery stores and auction Web sites to search engines and social media sites -- sometimes you can get a lot more than you pay
for.
1. Auction sites. Auction sites such as eBay often offer
cards for less than full price -- but you'll need to do some research to make
sure the card is legit. Be sure to check the seller's ratings and ask about any
expiration date or nonusage fees that might apply. "If you can get at
least a 30 percent discount on the card, I think it's worth it to go through
those steps," says Fatima Mehdikarimi, a shopping and finance expert who
runs ShoppingQueen.com.
2. Gift-card specific sites. Swapagift.com and Certificateswap.com
are niche sites that cater to people looking to buy, sell and trade their gift
cards. "Their discounts aren't usually quite as good as the ones on eBay,
but they have an extra layer of protection," says Mehdikarimi. At these
sites (unlike a typical auction site), the gift card's value is secured with the
seller's credit card, and some sites will guarantee your purchase up to a
certain amount. You'll tend to find a flood of new cards -- and likely bigger
bargains -- after holidays such as Christmas, Valentine's Day and Mother's
Day.
3. Bing's shopping portal. In a
bid to lure users away from Google, new-search-engine-on-the-block Bing.com offers cash-back
rewards to registered users for many purchases through its shopping site.
"They're one of the most lucrative [sites] on getting cash back," notes Brian
Preston, host of the Money Guy podcast and partner at Preston & Cleveland
Wealth Management. To find out if you can score a deal, head to Bing, click on
"Shopping" and enter the name of the gift card you're searching for. The site
will list all the cards available, prices and cash back rewards, which can
surpass 10 percent. Recent deals have included 6 percent cash back on Gap and
Banana Republic cards, and 10 percent cash back on iTunes cards.
4. Holiday bonuses. During the holiday season, local
restaurants will look to get on your shopping list by offering extra on a gift
card to sweeten the deal -- an extra $25 on a $100 card, for example. If you're
looking for a deal on an upscale salon or spa, Mother's Day and Valentine's Day
are two holidays where you'll be more likely to get more bang for your buck. A
grand opening banner above a locally owned store is also a good sign, says
Shakira Brown, a shopping expert who runs the site retailsecrets.net. "In
the service industry, you'll see a lot of gift card specials where you can get
20 percent to 50 percent off the face value," she says.
5. Warehouse and club stores.
Membership really does have its privileges. Stores like Costco and Sam's Club
offer more than just 20-gallon vats of peanut butter -- they offer gift cards well
below retail price. At Costco, members can pick up $90 in iTunes gift cards for
$75 or $100 in Wolfgang Puck gift cards for $80.
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6. Bulk buys. Do you plan to be giving the same $50
bookstore gift cards to all your friends and family for years to come? A large
volume order might help you save some cash -- as long as you're willing to
shell out quite a bit upfront. At Dave and Buster's, for example, discounts
kick in at $500, while you'll have to spend at least $10,000 to rack up any
savings at Best Buy. To pursue this option, get in touch with the corporate
sales department of a company and ask about volume discounts.
7. Grocery grabs. You can swing by a clothing store to
buy a gift card, but you might also be able to pick up the same card from
your local grocery store. You'll pay the same amount upfront, but if you have a
rewards credit card that pays you back 5 percent for
purchases made at a grocery store, the best option is clear.
8. Local media sites. Local
television stations, newspapers, radio stations and even sports teams often
strike deals to offer half-price gift cards (or two for the price of one) to
nearby restaurants, hotels, spas and salons. If you don't hear them
advertised, head to the media outlet's Web site and search for "half price restaurants" or
"dining deals."
9. Specialized sites. Sites such as Restaurant.com and
Citydeals.com offer gift certificates at steeply discounted prices or throw in
"extra value" credits -- usually about 10 percent of the total -- for the
retailer. You'll see offers for car rentals,
chain and local restaurants, and movie theaters. Be sure to check
restrictions before you buy. At Restaurant.com, for example, the gift
certificates may require a minimum purchase and tack automatic gratuities onto
the bill.
10. Twitter or Facebook. Social networking site Twitter proves that it only takes 140 characters to snare a
deal. Start following Twitterers in your city, such as HalfpriceSD (San Diego)
or become a Facebook fan of a deal-making organization like Half Price Chicago
to get the inside scoop on where to get gift cards for less.
11. Miles and points. Those frequent flier miles that are
languishing in your account can often be redeemed for gift cards for movies,
clothing and other retailers' products. While you may be able to get cash back
for points you've earned on your credit card, you may be able to get a gift
card worth more than the money. "If you're someone who pays their bill off
every month, these are freebies," says Brown. "Take advantage of
them."
12. Your credit card company's shopping
site. Credit card companies are eager to have you buy through their shopping
portals, such as Citi's Bonus Cash Center and ShopDiscover. You may pay full price
for a gift card, but you'll earn a few percentage points in cash back that's
credited to your account -- and the selection is often fantastic. "In many cases,
the gift cards that are available are like a who's who of retailers," says
Preston. At Citi's site, for example, you can snare cards with cash back offers from such stores as Target, Barnes and Noble, Sears and Lowe's.
13. Go in as a group. Maybe you
want to get the boss a gift card for the holidays, but you don't want to foot
the entire bill. Options like Best Buy's "Pitch in" program and Lolligift.com
allow you to set up a virtual bank account to collect money from coworkers,
pals, family or anyone else to collect the required cash for a pooled gift -- no
envelopes or badgering required.
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