Virtual gift cards are expected to a be hot item this year.
Shannon Duffy is a busy working mother of two with no time to shop.
Virtual gift cards are her favorite presents.
"They're great for people like myself who are always on the go," she said.
Duffy logs on to websites of stores offering online gift cards, picks the amount, enters her credit card info, the recipient’s name and email address and her shopping is done.
"Buying a virtual gift card is super easy to do," said Duffy.
Virtual gift cards can be spent online immediately.
In addition, some businesses let you print the card and spend it at the store. More and more retailers are coming up with apps that allow customers to scan the gift card codes on smartphones.
"As mobile technology is advancing so quickly more and more retailers are adopting the use of virtual cards," said Karen Renk, Executive director of Incentive Marketing Association.
Industry experts say virtual gift cards are the hottest trend in shopping and social networking. Many stores are giving them away to web customers who visit their Facebook page and other online fan pages.
"Retailers see a tremendous potential in the use of virtual gift cards to attract new customers and to reward loyal customers," said Renk.
But there are drawbacks to the cards and Duffy's spam filter caught one.
"It was really frustrating," said Shannon Duffy.
After a glitch Duffy had to battle with the retailer to get the card re-issued.
"If the email doesn't arrive it's like the gift doesn't arrive," said Gail Hillebrand of Consumers Union.
Consumers union said to make sure the person getting the gift knows you're sending it. And they suggest using it as soon as you get it, if the store goes out of business, you will be out of luck.
"If that person goes under when they're holding your money you're in the back of the line in the bankruptcy court and you may not get your money back," said Hillebrand.
Even Duffy, who has had mixed experiences said she will continue to shop with the virtual gift cards this holiday season.
"They're perfect for sending and receiving. They're great for people who are homebound that can't get out to physical stores. They just log on and send one that way," she said.
Cyber gift cards are regulated the same way plastic gift cards are so make sure you read the fine print and know the terms and conditions before you buy.
One more tip, if you ever lose your virtual gift card code or print-out call the retailer immediately. That way you can get them to re-issue the value remaining on the card at the time you report it.
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