PLASTIC BETTER THAN PAPER POPULAR GIFT CARDS OFFER VARIETY, CHOICE.

Byline: Candice Choi Staff Writer

Gift cards are expected to ring up a record $17 billion in sales this holiday season as they continue to shake off the frosty image of being little more than impersonal blank checks.

``It's not just a lazy person's gift anymore,'' said Scott Krugman, spokesman for the National Retail Federation.

Creative packaging and widespread availability are driving the growing popularity of gift cards, Krugman said. ``They're sold as products now more than as a service.''

Shoppers will spend $17 billion on gift cards this holiday season, up $100 million from last year, according to the National Retail Federation. On average, consumers say they will set aside 11.5 percent of their budgets for gift cards.

Total holiday spending is expected to reach $220 billion, up 4.5 percent from last year. Seventy-four percent of consumers will purchase a gift card, up from 70 percent a year ago.

More people are looking forward to finding some plastic in their stockings too, with 50 percent of consumers saying they'd like to get gift cards, compared with 41 percent last year.

Clothing, toys and CDs or DVDs remain the three most popular gifts. But gift cards are becoming more widespread as department stores, grocery chains and even credit card companies offer them as options at the checkout counter.

``We've definitely seen a significant increase in the past two years,'' said Beth Bingham, spokeswoman for Borders Bookstores.

The bookstore chain is even offering ``The Polar Express'' card, which can be packaged in a tin box shaped like a train. Another popular Borders card features a hologram.

Although the festive packaging helps spike sales, Bingham said it's more that people are realizing the beautiful convenience of a gift card.

``It's just so challenging to figure out what to get someone,'' she said.

A study by American Express found 51 percent of consumers say they're giving gift cards because they're shopping for someone ``difficult to please.'' About 27 percent say it's because the gift was a last-minute purchase.

A majority of consumers purchasing a gift card this year want to give freedom of choice, with 59 percent saying they prefer a ``universal'' gift card that allows those who receive them to shop anywhere and 37 percent saying they want a card from a particular store, according to the American Express survey.

Gift cards are simply more widespread as well. Shoppers waiting at grocery store checkout stands can pick up gift cards to major department stores. American Express is offering gift cards at Rite Aid and Safeway.

Many states, including California, ban retailers from putting expiration dates on gift cards. Even so, about 10 percent of gift cards, or $4 billion worth, go unredeemed every year.

About 39 percent of people say they'd redeem gift cards within a month of receiving them; 83 percent, within the year.

Retailers do not count a gift card as a sale when it is purchased, but wait until the card is redeemed. Those sales will likely show up in January and February, according to the NRF.

Candice Choi, [phone]

candice.choi(at)dailynews.com

GIFT CARD TIPS

The Treasury's Office of the Comptroller of the Currency and consumer agencies suggest that consumers look into the terms and conditions on gift cards before they buy. Some things to look out for:

--Is there a charge for purchase of the card? Gift cards issued by retailers generally don't have upfront costs, but bank cards that carry the logo of companies such as Visa, MasterCard, American Express and Visa can cost $3.95 to $11.95 to buy.

--Does the card have an expiration date? In California, the law prohibits expiration dates, but it could be an issue for an out-of-state recipient.

--Are ``inactivity'' or ``dormancy'' fees deducted from the value of the gift card if it isn't used in a set period of time?

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GIFT CARD TIPS (see text)