Gift cards are more popular than ever, according to a First Data Corp. survey conducted by Market Strategies International.

In 2007, 90% of US Internet users reported either purchasing or receiving a gift card over the past year, and 60% of respondents had done both.

The most popular occasions for purchasing a gift card were birthdays and Christmas. Almost 70% of purchasers bought a gift card as a birthday present, while 61% bought one as a Christmas present.

Gift cards that can be used at a specific retailer are purchased more frequently than those that can be used at multiple retailers. On average, consumers purchased five retailer-specific gift cards in 2007, spending an average of $46 per card.

Gift cards are good business beyond their purchase price, however. Card recipients ended up spending an average of $29 more than the original value of the gift card received.

The top reasons cited by respondents for purchasing a gift card were that the receiver could buy what her or she wanted (72%) followed by the convenience of purchasing (43%), flexibility in redeeming a gift card (38%) and not knowing what to buy (33%).