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While you are resting up from the holiday festivities, you need to start thinking about how and when you will return those unwanted gifts. We’ve all received them. According to the NRF, 80% of all retailers are keeping their return policies from last year, but there are some important changes happening you need to know about when returning gifts or using those gift cards.

TRENDS IN RETURNS

RETAIL STORES:

Good news: Between this year and last year retailers have become more flexible, allowing you with items purchased online to return items directly to the stores. Gift returns are down because more than 75% of the population is giving gift cards. Most retail stores are being more lenient about expiration dates, and eliminating them.

Bad news:

  1. The store return lines may be a little long
  2. If you try to return your gift without a gift receipt you may not get to return or will only get a portion back
  3. Same goes for packaging-keep original packaging, and don’t open anything or else you may only get back 50% in some cases (Amazon and the electronics stores–$16 b in retail losses for one-time users, so very strict this year).

Retail Gift Cards:  $80 billion spent this year. This year, paper gift certificates were replaced by beautiful-looking cards, with special packaging (Starbucks gift cards came inside woven mittens!). Also, this year, card balances are able to be updated right at the cash register. Most retailers are allowing unlimited time to use the gift cards now.

Tip: Over $8 billion will be lost this year because of unused gift cards. We have all received gift cards from stores we would never shop at, so check out Swapagift.com. For only $3.99 you can trade your unwanted gift card with a different gift card. The price is low; when you might not otherwise use the card you were given.

ONLINE GIFTS

This year, you need to ask if the gift given from a website can be returned to the store, or if you will have to send the gift to a 3rd party location. Example of store that won’t allow you to return online purchases in the store: Target. Also, check to see what shipping charges you will incur.  Many sites still won’t pay to ship returns.

BANK GIFT CARDS (VISA, MC, AMEX):

Some problems:

  1. Can’t find out your balance on the card at the cash register
  2. Store registers can’t handle multiple forms of payment (if you only have $5 left on your card, and you need to add another $10 w/ your own credit card-out of luck)
  3. NEW TREND: Charges of $15 to call an 800 number just to find out what your balance on the card is-something you can’t find out at the store
  4. Monthly fees after usually 6 months of between $2.50-3.50 for unused balances, regardless of how small…so basically, 6 months expiration dates-much quicker return policies than typically with retail.
  5. NEW TREND:  recipient pays $15 to get bank to issue check on balance!

KEY: Find gift cards that are good for at least a year.

THE RETAILERS (BY INDUSTRY):

BIG BOX:

  • TARGET: 90-day return window, bad for recipient b/c less of an opportunity to get to a store than with a gift card.  This year: must have the physical receipt, or gift receipt.  Generally can’t return online purchases at the store.
  • KMART AND WAL-MART: Different from Target-can return items bought online in the stores.  Returns by mail may take weeks to process and may only be credited to the gift-giver’s credit card, not to the recipient.

DEPARTMENT STORES:

  • MACY’S: (GOOD) 6-month return policy.
  • BLOOMIES: (BAD) Must ship all online gift returns to a 3rd party location.
  • SAKS: (BAD) Watch those shipping costs: each additional recipient costs you $5 more in shipping when shopping online.  $4 charge for shipping gift cards.
  • JC PENNEY’S: (GOOD) No expiration of gift cards, and no hidden charges.
  • GAP: (BAD) Though no charge for shipping gift cards, store credits only, and only if you have receipt.
  • NORDSTROM: (GOOD) Gift cards never expire, and free shipping label in each box.

HOME FURNISHINGS STORES:

  • In general, the home furnishings stores are offering free gift card shipping and most don’t expire (Pottery Barn, Crate & Barrel, Z-Gallerie . . .)

Related posts:

  1. Tricky Gift Returns This Holiday Season
  2. Holiday Shopping: What You Need to Know Before Heading to the Stores
  3. Furnish Your Home Quickly and Inexpensively This Holiday Season
  4. The Best and Worst Return Policies for Holiday Gifts
  5. Holiday Shopping This Season