The National Retail Foundation said that gift cards are the most requested gift again this year, which should come as no surprise given their popularity since being introduced. However, consumers thinking about purchasing these cards for their loved ones may want to reconsider. It may be convenient to give a gift that will always be the right size and color, but there is some risk involved that must be considered.

Research by the Tower Group found that gift card holders lost more than $100 million this year alone. Big stores filing for bankruptcy, including The Sharper Image and Linens ‘N Things, led to the majority of the losses while more may be on the horizon. Circuit City, which filed for bankruptcy a few weeks ago, asked and received court permission to honor its gift cards, but others may not be so lucky.

Some gift cards also have design flaws that could make them less valuable. For example, some gift cards have expiration dates where the value becomes worthless if it’s not used. Meanwhile, other cards, notably those provided by Visa and MasterCard, charge fees if they are not used that can add up to a few dollars a month. Both of these attributes make gift cards far less attractive than cash or actual gifts that do not lose value.

So, think twice before you buy your loved one a gift card this holiday season…