Debit gift card

That SHRINKING Gift Card

If you received a gift card-a plastic card that looks like a credit card but works like a debit card-for the holidays, it could be shrinking as the weeks turn into months.

The reason? Purveyors of gift cards sometimes fold in a variety of fees that can eat away at the cash balance your friend forked over at the cash register. For example:

Although most cards offer an expiration date a year from the date of issue, some charge monthly fees after a certain period, such as three or six months. If you haven't used your card by then, these fees will nibble away at your balance.

If your card holds a balance when it expires, you'll pay a hefty fee to get it in cash.

If you use the card to get cash from an ATM, the issuer imposes cash limits as well as a transaction fee. Add the fee charged by the ATM owner and you could pay $3 for taking out $10 in cash.

Moreover, you should be aware that gift cards may sometimes be denied even if you have the funds available on the card. For example, when a restaurant checks your card to see if it holds enough money for the purchase, the restaurant "upcharges" or adds 15 to 20 percent to your food bill to make sure you'll have enough for a tip. Although this money is not charged to your card, it could mean your card is denied.

Similarly, your card may be turned down at the gas pump if your balance won't pay for the average purchase price of gas. And if you plan to use the balance on your gift card toward a larger purchase, be certain to tell the cashier before the transaction that you will be paying the balance in cash or credit, If you don't, the card will be denied.

ISo sit down now, plan an outing for coffee, dessert, or a new novel. Enjoy it.