Gift cards solve gift-giving dilemma

(NewsUSA) - Finding the perfect gift for friends and loved ones is an ongoing challenge.

You can't open up your calendar without being reminded of a birthday, graduation, new baby, bar mitzvah or holiday occasion.

Gift cards have become increasingly popular. According to a poll by Coinstar, 80 percent of men and 76 percent of women would welcome gift cards for the holidays.

While gift cards continue to grow in popularity, many consumers are just beginning to discover a new breed of gift card - one that offers flexibility, consumer protections and widespread usability.

The fastest-growing segment of the gift cards market is branded gift cards. These carry a brand logo such as American Express, Discover, MasterCard or Visa.

They can be purchased online and at many banks and retailers. Recipients can use them virtually everywhere that accepts the brand on the card, including online stores, retailers and service providers.

Cards with a brand logo also provide consumer protections such as replacing lost or stolen cards and recrediting money after unauthorized use of the card.

The sky is the limit with respect to what the gift recipient can use the card for: enjoying a spa treatment, getting tickets to see a favorite band or simply buying groceries and gas. In fact, recipients can split their branded gift card spending among multiple locations.

Branded gift cards are growing at a much faster rate than store gift cards or gift certificates that are only good at a single retailer location.

According to the National Retail Federation, $5 billion worth of branded gift cards were purchased in 2004, and that figure is expected to rise to $26 billion in 2007.

Before you buy a branded gift card, spend a few minutes finding the card that fits the lifestyle of your recipient.

Following these tips can help you have a stress-free gift-giving experience and ensure that everyone on your list is happy:

t Ask about unique features. Many cards offer designs and packaging to match the gift-giving occasion and can be personalized with the recipient's name.

Some cards can be used at overseas locations, so if you want to give a gift to your friend in Italy, be sure to ask if the card can be used internationally.

t Ask what happens if the card is lost or stolen. Cards with a brand logo provide consumer protections. Encourage recipients to follow the instructions for registering and activating the card.

t Ask about expiration dates and fees. The information may appear on the card itself, the accompanying sleeve or envelope or on a Web site. If you don't see it, ask for it in writing and give the information to the recipient. It is also a good idea to give the recipient the original receipt to verify the card's purchase in case the card is lost or stolen. Make sure the recipient knows the expiration date and if and when any fees are charged.