Can You Trade in Gift Cards for Other Gift Cards?

It is common to receive gift cards for retailers or services that do not align with one’s needs or preferences. This often leads to a desire to exchange these unwanted cards for those that hold more personal value. While directly swapping gift cards for others can be challenging, several methods and platforms exist to help consumers convert their unused cards into more desirable forms of stored value.

Direct Exchanges with Retailers

Most retailers do not offer direct exchanges of gift cards for other gift cards or cash. Gift cards are treated by businesses as a form of stored value, similar to cash, for purchasing goods or services exclusively from their brand. This policy helps prevent fraud and manage accounting practices, as the revenue from a gift card is recognized when it is redeemed, not when it is sold. Allowing direct exchanges could complicate inventory management and create avenues for money laundering. While some jurisdictions may have laws permitting cash redemption for small remaining balances, a full exchange for a different brand’s card at a physical store is not an option.

Using Online Gift Card Exchange Marketplaces

Online gift card exchange marketplaces are a primary solution for converting unwanted gift cards into more useful forms. These platforms connect individuals who wish to sell their gift cards with those looking to purchase them, often at a discount. The process involves listing your unwanted gift card, providing details such as the retailer and balance, and setting a selling price or accepting an offer. Once a buyer is found, the platform facilitates the transaction, verifying the card’s balance and validity before processing payment to the seller. These marketplaces offer a wide variety of gift cards from many brands, allowing users to acquire desired cards, so choose platforms known for their security measures, customer support, and clear verification processes for smooth and safe transactions.

Selling Gift Cards for Cash and Repurchasing

An alternative is to sell your unwanted gift card for cash and then use that cash to buy a new, desired gift card. Online marketplaces can facilitate cash payouts, where you list your card for sale and receive funds directly. Some physical locations offer to buy gift cards for cash or store credit. The amount received is a percentage of the card’s face value, reflecting the service fee or discount applied by the buyer. This method provides flexibility, as the cash can be used anywhere, including for a new gift card.

Understanding the Value Exchange

When trading or selling gift cards, you will rarely receive the full face value of your unwanted card. The value offered is influenced by factors like brand popularity and demand. Gift cards from widely recognized and versatile retailers command higher resale values than niche brands. Other considerations include the remaining balance on the card, as cards with round, higher denominations are more attractive. The platform’s fees or profit margins also contribute to the discount, so sellers typically recoup 70% to 90% of the card’s face value, depending on these market dynamics and the chosen platform.