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Gift cards to buy and avoid this holiday season

Nearly a quarter of all popular gift cards contain a shipping or processing fee.
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TSG and Bank of America’s annual gift card survey revealed that about 60% of Americans got a gift card last Christmas season, but nearly a third of them waited until after Valentine's Day to use most of their cards.

To avoid wasting money on gift cards, WalletHub has released a list of the best gift cards to give this holiday season. Given its popularity, it should come as no surprise that Target ranks No. 1. It is followed by Amazon, Sephora and Walmart.

MasterCard ranks at the bottom of the list, followed by Smoothie King, American Express and Fandango.

The rankings factor in popularity, buyer discount, resale value, retailer rating and shipping and purchasing fees.
While Visa and American Express cards rank among the most popular, they are among just a handful of cards with shipping and purchase fees. Out of 50 gift cards ranked by WalletHub, 14 have fees.

If you are looking for gift cards with the highest resale value, Costco ranks No. 1. For the best buyer discounts, Sonic and Cinemark rank highly.

Besides Visa, Amazon and Target rank as the most popular holiday gift cards.

Here are the top 10 gift cards to buy, according to WalletHub:

  1. Amazon
  2. Target
  3. Sephora
  4. Walmart
  5. Starbucks
  6. Disney
  7. REI
  8. Home Depot
  9. Nike
  10. eBay

The National Retail Federation projects the average consumer will purchase three to four gift cards and spend $51.18 per gift card ($170.48 per person).
The NRF says that restaurants are the most popular gift card category (30%), followed by department stores (25%), bank-issued gift cards (25%) and coffee shops (22%).