Giving and Receiving Gift Cards (2024)

As the biggest holiday season of the year approaches, more people have asked me whether giving gift cards is good etiquette. I say yes, primarily because times have changed. There was a time, people considered gift cards the lazy person’s way to giving a gift. Today, it can be quite the opposite, as long as both the giver and receiver follow these 8 guidelines:

For the Giver

1. Be selective. Choose a gift card from a store you think the receiver will like, based on his or her interests, likes, and dislikes. To be sure, view the store’s website to see items you think the person will want and enjoy.

Sometimes a surprise gift card can work out. I once received a $50 gift card to a high-end electronic store, to which I had never been. My initial thought was, “What the heck am I going to get?” To my surprise, I not only found something I truly wanted, but my husband and I continue to use it years later. I would never have thought to purchase the item otherwise.

You can also give a gift bank card that lets receivers purchase whatever they want from any store. However, you can’t control how the receiver will use it. For all you know, he or she might need to pay bills. Don’t be offended if this is the case.

2. Wrap the card distinctively. It’s more fun to receive a gift card when it is wrapped in a way that shows someone took some time to package it. If you don’t want to wrap it, place it in a personalized handmade–or store-bought–card that describes the specific occasion for the gift, such as holiday, birthday, wedding, or thank-you.

3. Add a personalized message. Say why you chose a card for a specific store. Perhaps mention items you saw on the store’s website as suggestions to consider. By sharing the reasons you chose this gift-giving and store, it will show you gave the gift some thought.

4. Enclose the gift card receipt. About six months after I gave someone a gift card, the receiver contacted me, asking whether I still had the receipt, because she had misplaced it. Luckily, I purchased the card via credit card, so I got it tracked and reissued.

On the off chance the store’s activation process for the card does not work, the receipt will help get the card properly and easily activated. When purchasing multiple gift cards, ask the cashier for individual receipts to attach to each card.

For the Receiver

5. Keep all gift cards in a safe place. Mark each card with the name of the giver, for what purpose, and the date. This way you will remember who gave you this gift, especially if it’s months later when you finally redeem the card.

6. Send a quick email. When you don’t redeem the gift card right away, send the giver a quick email to acknowledge and thank them for the gift. Tell the giver you will write them again as soon you redeem it. For the giver, there is nothing worse than giving a gift card, never hearing from the receiver again, and never knowing what he or she purchased with the card. This is one of the biggest drawbacks to giving gift cards.

7. Send a handwritten thank-you note. Once you redeem the card, send the giver a handwritten thank-you note that shares what you purchased. This tip is key. It shows your appreciation for the gift and how much you enjoyed buying a specific item you truly wanted.

A few years back my husband and I combined several cards to purchase an air purifier we had wanted for some time. It took a few months, yet when we finally got it and sent a thank-you note to each person, they told us how much they appreciated knowing what we purchased, and that it was something useful and something we wanted.

8. Mark the gift. It’s hard to remember who gave us a gift card and for what occasion. The final step to honoring those who gave us gift cards is to mark the actual items or keep a list of the names and items purchased. This is especially good when cards are combined for a larger purchase.

Bonus: To keep everyone sane, I’m seeing new and innovative styles of gift-giving. Some families pick names out of a hat to give one gift to a specific family member. Others bring one generic gift from which each person picks a number to choose a gift. Gift exchanges are encouraged.

Or you might consider sending a group email to your family or friends, asking everyone to agree to only give gift cards to a store each person selects. This way, a low amount won’t matter as much. This system allows receivers to pool and purchase one or more gifts they truly want, use, and will enjoy.

Happy Gift Giving!

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Giving and Receiving Gift Cards (2024)

FAQs

What is the etiquette for gift cards? ›

"Never just give a gift card," Meier says. "It's about the delivery and matching it with the formality of the occasion, and that would determine if it's appropriate or not." She recommends giving one with a card, floral arrangement, or bottle of champagne with a card and handwritten note.

Do gift cards have to be reported as income? ›

Gift cards are considered cash equivalent items and must be reported as taxable income. They fall under the category of cash equivalent fringe benefits, which means their value must be included in an employee's wages and may be subject to withholding for Social Security and Medicare Tax.

Is a $25 gift card taxable income? ›

The tax rules for gift cards do not change based on the amount. Gift cards are taxable whether they're worth $50 or $500. The tax rules are also consistent whether the gift card is offered as part of an employee recognition program or as a holiday bonus. It's still considered cash equivalent.

What is the proper etiquette for receiving a gift? ›

If you are presented with the gift in person, smile and thank the gift giver. If you receive a gift by mail, call the gift giver as soon as you can to alert them that the gift has arrived. You should also send hand-written thank-you notes whenever possible.

Is $25 too cheap for a gift card? ›

For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100. When you're selecting a gift card for a spouse, parent or someone else who's very special, choose a card worth $75 or more.

Are gift cards tracked by IRS? ›

No, gift cards cannot be tracked by the IRS. When it comes to the IRS and gifting, reporting gift cards is done using the honor system. However, if you are not honest about the gifts you are giving, the issue could come up in an audit.

Can I give my employees gift cards for Christmas? ›

Gifts of cash or cash equivalents, such as gift cards, are taxable to the employee, regardless of the amount. Non-cash gifts may not be taxable if they are under a certain value and given only infrequently. Employers can deduct the costs of gifts, but typically only up to $25 per gift.

Does receiving a gift count as income? ›

Share: Generally, the answer to “do I have to pay taxes on a gift?” is this: the person receiving a gift typically does not have to pay gift tax.

Are gift cards taxable to non-employees? ›

Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable.

How much can you give an employee as a gift tax free? ›

You still can't give employees cash or cash-equivalent gift cards tax-free, but you can give much more valuable physical gifts (up to $1,600 fair-market-value in gifts per employee per year) without tax obligations. To do so, employers must meet strict requirements that the IRS documents in their Fringe Benefit Guide.

What is a non cash gift? ›

Some examples are: securities, such as stocks and mutual funds, cars, boats, antiques, jewelry, works of art, and real estate. Closely held stock, in certain circ*mstances, can also be a strategic non-cash charitable gift. Generally, non-cash donations are items of value that can be converted to cash.

What to write when giving a gift card? ›

THINKING OF YOU
  • Just a note to keep in touch. Let's talk soon.
  • Thinking of you—hope all is well. ...
  • Sorry I missed you. ...
  • Just touching base with you.
  • Sending this just to say hi.
  • Thinking of you and wishing you a happy day.
  • We do not remember days, we remember moments.
  • For someone too special to ever forget.

How do I turn unwanted gift cards into cash? ›

Here are some of the best options.
  1. Use an app to sell them. ...
  2. Sell them on gift card exchange websites. ...
  3. List them for sale on other websites. ...
  4. Sell them to a pawnshop. ...
  5. Sell them to people you know. ...
  6. Transfer the card to your bank account. ...
  7. Pay bills. ...
  8. Regift them.
Apr 8, 2024

What is the appropriate gift card amount for a friend? ›

You want to give an amount in the gift card that seems appropriate. General etiquette is usually under $20 for casual acquaintances, like co-workers, $30-$75 for close friends and family members and more for someone like your spouse or for a big occasion, like a wedding.

When giving a gift card should you include the receipt? ›

Save your gift card receipt. “There are any number of reasons why the card may not have been properly activated,” LaRocca said. Give the gift-card recipient the receipt (you may want to make a copy of it for your records). Having the sales receipt will help to verify the card was purchased in case it's lost or stolen.

Is it rude to give cash instead of gift card? ›

"Money is an appropriate gift," says etiquette expert Elaine Swann, founder of The Swann School of Protocol. "Studies say that it is the most welcomed gift—the one gift that most people want."

Is it proper to put the amount on a gift card? ›

You can include it in the message on the card if you need to, but try to make the focus of the gift the occasion and not the money amount.

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