Ah, holiday season... The time of the year when we collectively try to figure out what to buy the aunt who decorates in country theme, the boss who seems to have everything, and the teacher who will kill the next parent who sends a mug. In the last few years the answer was simply -- GIFT CARD!

The thought of giving a gift card went from tacky to fabulous in recent years, but this year it's almost as risky as buying stocks.

According to the media, people lost a lot of money on gift cards to stores that closed:

Just this year, consumers lost about $100 million in gift cards that they could not use when major retailers went out of business, Mr. Riley said.

The trouble is, there is no standardized procedure for handling gift cards after a Chapter 11 bankruptcy filing. The store does not necessarily shut down. Nor does it automatically stop taking -- or for that matter, selling -- gift cards.

Then I got an email through a listserv about the gift card situation:

Stores that are planning to close after Christmas are still selling the cards through the holidays even though the cards will be worthless January 1. There is no law preventing them from doing this. To be safe, by gift cards from Visa, MasterCard, American Express where your guest can use them anywhere, at any store. Below is a partial list of stores that you need to be cautious about.

No matter who sends me an email like this, especially when a website isn't linked, I head on over to Snopes.com. And voila! Just like magic, the email I was sent is listed. The email is tagged as a "mixture of accurate, inaccurate, and outdated information." For most people, just having the accurate in there means they will heed the entire message and stick to cash this holiday season.

On a recent trip to the mall, one high profile store was "50% off most items. This store only!" Will passers-by think that the store is going belly-up or just that this location is closing? Will gift givers return to sending cash in holiday cards? Will we decide that the fees on VISA/MC/AMEX gift cards are worth it after all? Or will we return to buying "safe" gifts that will no doubt end up being re-gifted at the next office party?

Either way, be careful out there. There seems to be a lot of misinformation flying around about who will still be in business after the holidays, who charges what fees, and whatnot. Could I interest you in some nice DIY stuff for gift-giving? Hmmm... maybe etsy needs a gift card system!

[Image: AFP via Baltimore Sun]