Plastic gift cards, those easy-to-reach, easy-to-purchase, colorful items conspicuously available at the checkout counters in retail and grocery stores, are growing quickly in their use and popularity.

Many gift purchasers seeking an appropriate present for holidays, birthdays or this season of high school and college graduations see the gift card as a quick and easy solution to their gift-giving dilemma. Gift cards let recipients determine exactly what to buy for themselves. They will get precisely what they want or need.

What a wonderful concept. However, not all gift cards are created equal, and consumers would be well-advised to closely read the fine print to determine how these products work or don’t work for them. There can be large, hidden costs associated with their use, of which the buyer should be aware.

The gift card industry is becoming a large part of the retail scene. In 2002, gift cards accounted for $45 billion in sales. The cards sold during the 2005 holiday season totaled $18 billion.

Retailers find plastic gift cards easier and less expensive to handle than paper, and more difficult to counterfeit. Shoppers find them convenient. Some cards can be “reloaded” with value, just fork over more cash at the register.

It is interesting to note that 10 percent of the money on plastic gift cards is never redeemed. This places almost $5 billion of clear profit in the hands of the retailers. In addition, monthly “maintenance fees,” “inactivity fees,” “service fees” or “administrative fees” can be tacked onto these cards at issuance or may kick in several months later. Over time these “termite fees” chew away at the value of the gift.

If not used for a year or two, the card may have no value at all. Some cards have an expiration date. This becomes not the gift that keeps on giving, but the gift that keeps on shrinking.

Remember also that gift cards often are treated just like cash.

If they are lost or stolen, they will not be replaced, or there will be a fee for their replacement. Another important note: Many retailers are now returning gift cards – not the traditional cashable checks – to consumer participants in their product rebate programs. Consumers are advised to check closely with the retailer as to what exactly is a “$50 rebate,” cash or a gift card?

Another good resource for information on gift cards is the Federal Trade Commission Web site: www.ftc.gov/bcp/conline/pubs/alerts/giftcardairt.htm.

Consumers also should be aware that there is a growing sub-industry for the sale or trade of unwanted gift cards. EBay and other vendors help consumers unload unwanted or unneeded cards for (of course) a small fee. A recent quick look at eBay showed almost 4,000 gift card items available for sale, often at less than face value.

If you are the recipient of a gift card, immediately check the fine print so that value is not lost. If you are giving a gift, consider cash, where only inflation will eat away at its value.

In the final analysis, plastic gift cards can be a practical gift in this fast-paced and hectic world. However, there can be many strings attached to these items that favor the card seller. Caveat emptor – “let the buyer beware!”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast Contact for Better Business Inc., Maine’s membership-funded, nonprofit organization and America’s oldest consumer advocacy agency of its kind, established in 1972. For help, write to Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1339, or e-mail consumerhelp@bangordailynews.net.