Gift cards have become very popular gifts for Christmas, birthdays, and other special occasions. They have also become another profit center for retailers because many are lost or never redeemed for one reason or the other. To put this in perspective, read this eye-opening story from the New York Times, which sums this point up very well:

http://www.nytimes.com/2007/01/07/magazine/07wwln_...

It goes beyond merely misplacing or forgetting about the gift cards given to you though:

You may have received a gift card to Simon Malls in the past. If you have and didn't immediately spend it, you know that Simon takes making a profit from them to a whole new level. They charge a $2.50 fee for each month it is held after six months, while voiding the entire balance after 12 months. This is on top of charging an initial fee to purchase the card and a fee to check the card's balance.

Does this even seem legal? Well, several states didn't think so and have sued them over the past few years. In any event, they're pretty proud of their gift cards to be charging what they do. Why people still buy them is anyone's guess.

So, if you're thinking of giving gift cards this Christmas, it just may be a gift to the retailer instead… even though their name isn't on the gift tag, it's on the card.