Americans Have Unused Gift Cards Worth Billions in Dollars
According to a survey by Mint, 61% of Americans prefer cash or gift cards as holiday gifts. How this gift is used, however, is another thing entirely. Give an American a gift card and watch them smile and also watch them not redeem one of the most precious American gifts in the digital age. That’s the story of the average American, who has at least $167 in unused gift card value somewhere in their wallet. According to a study by leading personal finance company Bank rate, Americans have $21 billion in an unused gift card and store credit value. This unredeemed gift card values also include airline vouchers and other valuable store credit cards.
Increase in the demand for gift cards
According to a new report by Blackhawk Network, gift card sales have gone up, and Americans spent 7% more in the 2019 holiday season than in previous years. How they forget to redeem this gift card after purchasing them is still a mystery to industry specialists.
Why people fail to redeem their gift cards
According to Ted Rossman, an industry analyst from Bankrate, “gift cards are as good as real money; however, people forget about them.” According to the same Bankrate report, more than 36% of the people surveyed left with unused funds on their gift cards say they might never use or redeem them. Also, more than half of the people polled said they have been in possession of at least one gift card for over a year.
How long can you leave your gift cards unused?
New consumer protection law gives your gift card a 5-year validity from the date of issuance. This doesn’t mean you shouldn’t use your gift cards as soon as you get them, delaying the redemption of your gift card can reduce the value or make it valueless when the business goes under.
Relationship between unused gift cards and household earnings
Gift card redemption and usage are related to how much a household earns in a year. According to the same Bankrate report, a household earning less than $80,000 yearly will redeem their gift cards more than families who earn more. Families that earn over $80,000 a year have an average of $297 in unused gift card value. Millennials between the age of 24 and 39 are less likely to redeem their gift cards with $234 left in their gift cards.
What to do with your unused Gift cards
The best way to use unredeemed gift cards is to sell them. You can sell them through gift card exchanges or exchange them for Bitcoin on major Bitcoin exchanges. Some of the most popular gift card exchanges include Cardpool and Raise. They help you trade in your unwanted gift cards. But you might never get the full value of the funds left in your gift card when you trade them in.
Some of the most valuable gift cards include the iTunes gift card, Amazon, Airbnb, and Target. There are other options left for unredeemed gift card owners, and you can give them to charity. The cards will be sold, and the proceeds directed to a cause you are passionate about. Recently, cash-strapped state governments who have lost federal funding for state projects are looking into new ways to raise funds, and their eyes are set on unused gift cards.
