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According to a new Bankrate survey, 73% of US adults have unused gift cards that they haven’t redeemed in the last year, leaving an average total of $ 116. The problem with gift cards is that if you don’t spend them in the first year, they won’t be issued, whether because you forget them over time or the balance is consumed by inactivity fees. If you hate the idea of putting money on the table, an annual gift card review will make sure you dump your unused cards once and for all.
Why you should always use gift cards right away
While there are state safeguards in place to prevent gift cards from expiring for five years from the date of purchase, companies can still charge “inactivity fees” to the card certain states if the card is not used within one year. These fees typically range from $ 2 to $ 5 per month and can be billed monthly until your gift card balance is depleted.
It also comes down to the fact that our habits overwhelm us: As reported by The Hustle, 70% of all gift cards are redeemed within six months of purchase, but after a year the redemption rate remains stagnant at 80%, with the likelihood of cards being redeemed decreasing over time. As soon as the cards are no longer in the foreground, we all seem to simply pay again with cash or credit.
So do a gift card audit
If you are serious about not letting your gift cards go to waste, you need an actual plan that includes the following steps:
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- Find all of your gift cards wherever they might be – in your wallet, purse, desk drawer – and put them together in one place.
- Check each one for an expiration date.
- Confirm the balance of each gift card using the website or phone number on the back of the card. Write this number in sharpie on the face of the card.
- Discard any cards with a zero balance so they don’t get mixed up with the good ones.
- Set a calendar reminder for the end of the week or month to serve as a deadline for your cards to be dealt – and make it an annual reminder so you’ll have to do the same 12 months from now.
The final step is to redeem the residual value cards – but that’s easier said than done, especially if you have a low value card for a dealer you don’t visit often. With that in mind, consider these options:
- Topping up your low value cards: If you have multiple cards with only a few dollars between them, consider topping them up to $ 10 or $ 50 and giving them away as gifts.
- Sell your cards: There are reputable gift card resellers who will buy your cards from you, albeit for a fraction of their value – their portion can be anywhere from 7% to 53% of the total value of the card (depending on demand for cards of a certain size). Retailers). It’s a good option when you don’t have an imaginable use for the card and just want some cash. This Lifehacker post guides you through the steps.
