Experts offer holiday gift card tips

AUSTIN (KXAN) - Consumer spending was up slightly last month.

The commerce department says spending was up a tenth of a percentage point in October. That's the smallest gain in four months. But incomes rose the most in seven months, nearly half a percent. The rise in earnings may boost spending during the critical holiday shopping season, which is the busiest time of year for most retailers.

Gift cards have been a popular option, especially for last minute shoppers. But with new fee-disclosure rules in place, experts say it leads to a better gift. Stores that issue gift cards must now clearly disclose all fees before the card is purchased. But the cards are a gift to retailers, too.

A professor of marketing says gift card recipients typically spend 140-percent of the card's face value. And electronic gift cards are quickly becoming a billion dollar industry.

The Credit Card Act of 2009 placed limits on expiration dates and inactivity fees. But experts advise choosing retail cards (ie: Target, Home Depot) over bank cards to help avoid costly transaction fees.

On-the-go purchasing is increasing in popularity. According to a new survey, commissioned by Motricity, seventy percent more smart phone and tablet users made purchases with their device compared to last year. The biggest concerns about shopping mobile seemed to be difficulty seeing the full product information and security.

Gift card tips:

Consumers should adopt the 'Use It Or Lose It!' mantra when it comes to redeeming gift cards.

• Spend it ASAP - best way to ensure you get the full value of your card
• Treat it like cash - stretch it just like your dollars; use coupons and shop during sales
• Read the fine print - be aware of card terms and fees