What to Do With Gift Cards You Don’t Want

It is common to receive gift cards that do not align with personal preferences or shopping habits. These cards often remain unused, representing overlooked financial value. This article offers practical ways to utilize unwanted gift cards and recover their value, preventing them from expiring or being forgotten.

Understanding Your Gift Card’s Value

Before using an unwanted gift card, determine its exact balance and review its terms. Most retailers provide multiple methods: visiting their website, calling a toll-free number, or inquiring at a physical store. Knowing the precise value is essential before exploring options for monetization or alternative use.

Gift cards often come with terms and conditions that affect their usability. Federal law mandates that gift cards cannot expire in less than five years from their activation date. Dormancy or inactivity fees cannot be charged unless the card has been unused for at least one year, and such fees must be clearly disclosed. Reviewing these details, usually found on the back of the card or the issuer’s website, prevents unexpected value reductions.

Distinguish between different types of gift cards. Store-specific cards (closed-loop) can only be used at the issuing retailer or a limited group of affiliated merchants. In contrast, general-purpose cards (open-loop) bear the logo of major payment networks like Visa or Mastercard and can be used wherever those networks are accepted. The type of card influences the available options for its use or conversion.

Monetizing Unwanted Gift Cards

Converting unwanted gift cards into cash or a more desirable form of payment is possible through online marketplaces. These platforms allow individuals to list cards for a percentage of their face value. While payout varies based on demand and retailer, sellers can expect to receive between 70% and 92% of the card’s original value. These platforms offer payment through direct deposit, PayPal, or a different gift card.

Another option for immediate cash is using gift card exchange kiosks, often found in retail locations. These automated machines allow users to scan their gift card, receive an instant cash offer, and, if accepted, obtain a voucher to redeem for cash at a customer service desk. While convenient for quick transactions, kiosks offer a lower percentage of the card’s value, ranging from 60% to 85%.

Selling gift cards through peer-to-peer methods, such as online classifieds or social media groups, can yield a higher percentage closer to face value compared to dedicated resale sites or kiosks. However, peer-to-peer transactions carry a risk of fraud and scams. Exercise caution and use secure payment methods when engaging with unknown buyers.

Alternative Uses for Gift Cards

Beyond direct monetization, alternative strategies can utilize unwanted gift cards. Regifting is a practical solution for birthdays or holidays. When regifting, ensure the card is valid, has no visible signs of prior use, and is presented nicely with new packaging. Also, avoid regifting to someone who might know the original giver.

Donating gift cards to charitable organizations supports a cause and may offer a tax benefit. Many non-profit organizations accept gift card donations, which they can use directly or convert into funds for their programs. For individuals who itemize deductions, the fair market value of the donated gift card to a qualified 501(c)(3) organization is a charitable contribution for tax purposes. Some platforms facilitate gift card donations to a wide range of charities.

Even if a gift card is for an unfamiliar retailer, it can still be used for everyday purchases. For example, a department store gift card could be used to buy household essentials, or a card for a gas station could cover fuel expenses. This leverages the card’s value for necessary expenditures, freeing up cash in your budget.