3 Tips on What to Look for When Buying Gift Cards

Gift cards - they're everywhere during the holiday shopping season, but if you're not careful, you could be throwing money down the drain. First, remember the sweeping overhaul to the credit card industry a few years ago? The CARD Act? It was a slew of laws aimed at protecting consumers from interest rate hikes on credit cards, but it also said that gift cards have a five year life span. So if you see an expiration date on a gift card of something sooner, that's a red flag. Next, take a careful look at the terms of the gift card. That's because some may only be valid in stores and an online gift card may not be accepted at that store's brick-and-mortar location. Finally, consider discounted gift cards. Why pay full price for a gift card when you can snag one for less? Plenty of online sites offer gift cards at some of your favorite stores -- like the Apple Store, Gamestop and Target -- at a discount, to the tune of 20 percent in some cases. Scott Gamm reports from New York.