Can You Convert Gift Cards? Here’s How to Do It
Learn how to effectively convert your gift cards into cash or other valuable forms. Understand methods, risks, and best practices.
Many people have gift cards they don’t want or need. While not traditional currency, various avenues exist to convert their value into something more suitable. This can involve exchanging them for cash, trading for different gift cards, or converting them into store credit. Understanding these options helps consumers unlock the value in their unused gift cards.
Understanding Gift Card Convertibility
Converting a gift card involves exchanging its value for a more liquid or preferred form, such as cash, a different gift card, or store credit. The type of gift card significantly impacts its convertibility. General-purpose gift cards (Visa, Mastercard, American Express) function similarly to debit cards, providing broad utility and easier conversion due to widespread acceptance.
Conversely, store-specific gift cards are restricted to purchases from that particular brand, making direct conversion challenging. A direct, full face-value cash conversion from the original issuer is typically not an option for most gift cards. The value obtained through conversion usually reflects market demand and the specific terms of the exchange.
Methods for Converting Gift Cards
One primary method for converting unwanted gift cards is selling them through online marketplaces. Dedicated resale sites allow users to list their cards and receive payment, often via direct deposit or an online platform, once purchased. The process typically involves entering card details and balance to receive an offer. Popular platforms include CardCash, Raise, and GiftCash. Peer-to-peer options, like local classifieds or social media groups, also exist but require careful attention to secure transactions.
Another conversion strategy involves trading gift cards, either through specialized online platforms or direct arrangements. Online trading platforms facilitate exchanges where users can swap their unwanted gift cards for others that better suit their needs. These platforms often provide a structured environment for verifying card balances and ensuring a fair trade. Direct trades with acquaintances or within online communities can also be effective, allowing individuals to exchange cards without intermediary fees.
Converting gift cards to store credit or obtaining cash refunds for small balances represents another option. Some retailers permit customers to exchange gift cards for store credit, particularly for product returns where a gift card was used. Additionally, some jurisdictions have regulations that mandate retailers to provide cash for gift card balances below a certain threshold, often ranging from $5 to $10. This allows consumers to reclaim small, otherwise unusable, balances directly from the merchant.
Key Considerations for Gift Card Conversion
When considering gift card conversion, the amount received will typically be less than the card’s face value. This depreciation occurs because buyers seek a discount for convenience or immediate cash. Resale rates often range from 70% to 90% of the original value, depending on brand popularity and demand. More popular brands, like major retailers or general-purpose cards, generally command higher resale percentages.
Fees and commissions are another factor that can reduce the net amount received. Online resale platforms often charge a commission, which can range from 5% to 15% of the card’s face value. Payment processing fees may also apply, further diminishing the payout, such as credit card processing fees for digital sales.
Security and legitimacy are crucial when converting gift cards. Use reputable platforms that offer buyer and seller protections to mitigate scam risks. Always verify the gift card’s balance before any transaction. Be wary of suspicious offers or requests for personal information outside of established secure platforms, as gift card scams are prevalent and difficult to reverse.
Finally, understanding the terms and conditions associated with a gift card is beneficial before attempting conversion. Federal law mandates that gift cards cannot expire for at least five years from issuance, and dormancy fees can only be charged after 12 months of inactivity. However, some cards may still have specific terms. Checking for any potential fees or usage limitations can prevent unexpected reductions in value or usability.