Gift cards can be frugal

The popularity of gift cards in recent years means most of us have at least one in our wallet at any given time. At least in BC, since November 2008 (pdf details), any balances on those cards don't expire and can't be eroded -- with some notable exceptions:

• cards that fall outside BC jurisdiction, e.g. telephone companies, iTunes cards
• cards issued by a mall which can be used in multiple stores, e.g. Mayfair Mall
• cards issued for a specific good or service, e.g. haircuts 

(Ontario and Manitoba have similar laws). And there's another "gotcha" on the iTunes cards, too. In Canada, the gift cards cannot be used to buy apps for the iPhone or iPod Touch -- you must sign up for iTunes with a credit card.
So how exactly can gift cards be frugal? Here's some thoughts:

1. Use them to save up for a big purchase -- we collected a bunch of cards from Future Shop (and asked family members to make that the gift of choice) until we had enough to buy a new television. Extra bonus? This allowed us to wait until the model we wanted went on sale.
2. Buy and sell cards at CardSwap.ca -- there's a modest seller's fee (minimum $4.50) so it's not much use low-value cards but it is a great option if you've been given a card you will never use (e.g. a card for a store that isn't on the Island). On the other side of the equation, it's a good way to pick up cards at a discount -- most are 10% to 20% off the face value and are guaranteed by CardSwap.
3. You can always re-gift unwanted cards but it may be just as valuable to use the card to buy gifts for other people; use the money you save on yourself (as a replacement for the gift card) or be really frugal and bank it.