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How to maximize savings with gift cards during the holiday season
There's certainly nothing wrong with getting or giving gift cards for the holidays, but here's how you can hone in on the savings and big discounts on gift cards.
HOUSTON - Rather than risk supply chain delays ordering holiday gifts this year, the National Retail Federation says 46% of shoppers will buy gift cards this year, spending nearly $28 billion dollars. And retailers are offering big discounts on gift cards.
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Not only can you save money buying gift cards for less than a gift for someone else, but you can also use buy them to save money on your own purchases.
"It's not just for gifting this year, it’s actually people buying gift cards for themselves for self-use because they know they can save anywhere from a couple of percents; up to 30% on some brands," explained Jay Klauminzer with Raise.com.
Several gift card platforms, such as Raise, CardCash, and GiftCardGranny, let your buy gift cards at discount from a wide variety of retailers. Raise, for example, lists a $50 H&M card for $43.70, and a $25 Chili's Grill and Bar gift card for $23. You'll find gift cards for everything from clothes, to travel, to home goods.
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You can also buy gift cards from people selling cards they don't want for less than the balance on the card.
"It’s a gift card marketplace," said Klauminzer. "So for people who have unused or unwanted gift cards stacking up in their drawer, they can list those on Raise, and they set a price. On the flip side, consumers can come, and they actually save the money the seller is offering."
Make sure the platform guarantees you’ll get what you pay for.
"Anything you buy on our site is backed by a one-year money-back guarantee," said Klauminzer. "If in the very slim chance, something goes wrong, we will make you whole."
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Many retailers are also offering deals on their own gift cards. For example, Target is holding a 10% off gift card sale for Target Circle members this weekend. Members can save 5% more if they buy the gift cards with a Target Red Card credit card. Just pay it off before interest accrues.
Amazon, Costco, and some grocery stores, such as Kroger, also sell gift cards to various retailers and restaurants at discounts. Kroger also offers rewards with some, like fuel points.
The Federal Trade Commission is also warning that gift card scams are on the rise, where scammers pose as someone you know or a government agency, saying you must pay them money using a gift card. Anyone who says you must pay them using a gift card is a scam.
MORE: BBB warning consumers about gift card scams which have tripled over the last 3 years