By Heidi Bender | Wealth of Geeks
A 2023 Credit Summit poll discovered that 60% of Americans have at least one unredeemed gift card. According to a similar survey by Bankrate, the average value of unused gift cards per person is $187.
It seems some who receive gift cards aren’t actually using them.
Gift cards are popular gifts. 83% of the Credit Summit respondents give gift cards for special occasions. The National Retail Federation (NRF) reports an estimated 44% of consumers gave at least one gift card during the 2023 holiday season, and nearly one-fifth of all Valentine’s presents were gift cards or certificates.
Contrary to what some might think, retailers want customers to spend the gift cards, and for good reason. Research from Blackhawk Network shows that 61% of consumers who use gift cards spend more than the stored value.
Sometimes, that’s because the gift card amount isn’t enough to cover a purchase at the location.
Jen from Expasti received a $25 gift card to Fleming’s Steakhouse. She shares, “I was so grateful for the thought, but of course, $25 might cover one appetizer at Fleming’s.” Thankfully, her story ends on a positive note. After telling a friend that she was saving up to use the gift card, that friend bought her another card to Fleming’s to help cover the cost of her dinner.
Reasons for Unused Gift Cards
The Credit Summit survey reports only 19% of Americans spend gift cards as quickly as possible. Another 11% hold on to gift cards when they don’t regularly shop at that particular retailer.
The top three reasons given for holding onto a gift card:
- Waiting for a special occasion (36%)
- Waiting until they need something specific from the retailer (23%)
- It’s from a place where they don’t usually shop (11%)
Another issue people can have is finding time to use them. Margarita Ibbott, a freelance travel writer at DownshiftingPRO, shares, “My husband gave my daughters and me a gift card to a local spa. It was for $100 each, so it was no small amount for the three of us. That was at least two Christmases ago; we still haven’t gone. He has reminded us at least a few times already, but living in different cities, we cannot seem to coordinate a day to go get our nails done!”
Paul Rose Jr., a writer from Wealth of Geeks, divulges another view on gift cards. “I lived in my car for a few years, so occasionally, I’ll catch myself worrying about ending up in that situation again. I tend to hold onto gift cards. For me, they’re unspent cash I can draw on when my finances are hurting. Besides, gas at Arco is $4.18, whereas Shell is $4.89, so I won’t use the $50 gift card because it seems less efficient than spending $50 at the other station.”
Besides receiving gift cards as a gift, people also earn gift cards through reward programs. or by playing games or apps for money that pay out in gift cards instead of cash.
What To Do With Unwanted Gift Cards
There are several ways to ditch gift cards if you’re not looking to use them.
People can sell gift cards on sites like eBay and CardCash. Sellers usually receive less than the face value of the gift card. Depending on the site, users may be required to mail the cards to a location.
Another option is to regift gift cards. When regifting, be thoughtful and give the gift card to someone likely to use it. Otherwise, they may say thank you for the gift card while resenting that they are stuck with it.
Some organizations will accept gift cards as donations. Gift cards donated to GiftCards4Change are 100% tax deductible, and they will provide a receipt. Or people can check locally for shelters or nonprofits that provide services to those in need in their community.
Giving Cash vs Gift Cards
Cash may feel like an impersonal gift. However, some people prefer cash over gift cards.
Statista reported that 44% of people wanted money as their most desired Christmas gift in 2023, with gift cards in second place at 38%.
Unlike cash, some gift cards have an expiration date. Also, the location for the gift card could close before the person uses it.
Anna Chesley, from New England Family Life, received a gift card from her grandma to a local restaurant. Unfortunately, the place closed before she could redeem it.
Gift givers can ask the intended recipient or someone close to them to learn their gift preferences. If gift cards are preferred, ask for a few suggested locations to reduce the chance of an unwanted gift card. And those who favor cash will be thankful for the money.
This article was produced by Media Decision and syndicated by Wealth of Geeks.
