By Susan Salisbury, The Palm Beach Post, Fla.

Oct. 26--Thinking of buying a general purpose gift card that can be used at most stores? There are a few things you should know about the cards issued by Visa, MasterCard and American Express, the Consumer Federation of America said today.

While most store cards have no fees or expiration dates, the general purpose cards usually cost $4 to $7 to purchase and are sometimes subject to monthly fees as high as $4.95 as early as six months after purchase, said Stephen Brobeck, the federation's executive director.

Pay attention to the card's expiration date and use it within six months if possible. An estimated 10 percent of the value of gift cards' values' are never used and another percentage is lost through monthly fees, Brobeck said. Some stores do not allow a consumer to split the amount of purchase between the gift card and another payment method, such as cash or another credit card. Tell the cashier up-front if you want to make a split payment.

U.S. consumers will spend an estimated $50 billion on gift cards this year, with about $4 billion of that on the general purchase cards. Yet, a recent nationwide survey of 1,004 adults found that only one-third knew about fees charged to purchase the cards, but 54 percent knew about monthly fees.

Last month American Express announced it is ending monthly gift card fees.

A Florida law enacted in 2007 that prohibits gift card expiration dates and fees does not apply to gift cards issued by financial institutions, thus the general purpose cards are exempt from those restrictions.

While it's still "buyer beware" when it comes to gift cards, more consumer protection is coming next year.

A new federal law that goes into effect in August 2010 prohibits fees being charged on gift cards if they have been used in the last 12 months. The law also prohibits gift cards from expiring for at least five years.

Elizabeth Owen, president of the National Association of Consumer Agency Administrators, said, "Gift cards are indeed an excellent gift. It is a gift that requires knowledge on the part of the purchaser and the recipient."

Brobeck said about the only advantage of gift cards over cash is that they can be replaced if lost.

The Consumer Federation of America and the National Association of Consumer Agency Administrators, which represents government agencies that provide consumer services, have produced a new consumer brochure on gift cards. It's available at www.consumerfed.org by clicking on What's New at CFA and is found under Education Resources.

If problems with gift cards arise, first contact the store or financial institution which issued the card. If unsuccessful, contact the Federal Trade Commission at (877) 382-4357 or the Florida Attorney General's Office at (866) 966-7226.

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