With the holidays fast approaching many people are opting to buy gift cards for their loved ones this Christmas.

If you get one of these card there are some things you need to know before you go shopping.

First of all ,there are two basic types of gift cards.

Cards that come from a bank and cards that come from a single merchant.

Bank issued cards are usually re-loadable and you can use them at many different locations because they have the VISA or Mastercard logo on them.

Single merchant cards normally  can only be used at that business or one of their their locations across the country.

This kind of card usually has a limited dollar amount that it can be redeemed for.

It's also important to read the fine print on the back of the gift card.

That's where you're going to find any rules or expiration dates that are important for you to know.

There are also some important things you need to know before and after you use your card.

First if you try to get a gift card online it's important to investigate both the company that's backing the card and the merchant who is selling it to make sure it's legitimate.

Make sure that you get a receipt whenever you buy anything with your card.

If you need to return the item, get a refund or try to recover the balance on the card, a receipt is your only proof of purchase.

It's also very important to know the laws in your state that govern the use of gift cards.

Every state has different laws regulating the sale and use of the cards.

For example Illinois has 2 laws that are not common to any other states.

Finally, If the company issuing the gift card goes bankrupt there is very little you can do about it.

The only hope is if another company decides to honor that card.

Otherwise you  are out of luck.