Gift card purchases are expected to reach $35 billion this holiday season, compared with $27.8 billion during the 2006 holiday season, according to Archstone Consulting's "2007 Holiday Gift Card Survey."

The average American family will spend $184 on gift cards this holiday season, according to Archstone. The company also found that more than 56% of gift cards were redeemed within the first month of purchase, and 85% of all cards were redeemed within three months.

"Retailers and consumers both realize the tremendous flexibility and value gift cards provide," said Andrew Buss, vice president at Archstone subsidiary The Hazelton Group, in a statement."Retailers have proven to be resourceful in finding opportunities to expand their gift card offerings across all retail channels, which gives the consumer the power to purchase these cards at a variety of participating locations throughout the country."

Nearly one-half of respondents spent more than the value of the card upon redemption. Men surveyed said they spent an average of $61 per gift card, versus an average of $42 for women. More than nine in 10 of the highest gift card buys ($200+ per card) were purchased by men.