If finding just the right gift for a relative or close friend proves to be a challenge, a gift card might be the way to go.

Gift cards offer flexibility and convenience for the recipient. But not all cards are the same: For example, some can be used only at the retailer’s store locations, while others can be used at any retailer and online. Many cards come with an expiration date, and some carry a built-in fee. A few allow the user to add money to the balance on the card or provide a Personal Identification Number (PIN) that lets the user withdraw cash from an ATM.

Before you purchase a gift card, consider the following:

¢ Read the fine print before purchasing a gift card. If you don’t like the terms and conditions, buy elsewhere.

¢ Find out the card’s expiration dates and fees. This information may appear on the card itself, on the accompanying sleeve or envelope or on the issuer’s Web site. Make sure the terms come in writing. If the seller is reluctant to provide the terms or conditions in writing, shop elsewhere. If the information comes separate from the gift card, give it to the recipient to help protect the value of the card. Also, give the recipient the original receipt to verify the card’s purchase in case it is lost or stolen.

¢ Consider purchase fees involved with buying the card, or activating it. Find out if a shipping or handling fee is built into the cost of the card if it is purchased online or over the phone.

¢ Consider fees for the recipient. Don’t let a $50 gift card to someone lose its value because of activation or usage fees.

¢ Check on purchase exceptions. For example, see if the recipient can use a store-specific gift card at either the physical store or at the merchant’s Web site. Also, find out if an “all-purpose” card can be used to buy groceries or gasoline.

Source: Federal Trade Commission,