Unused Gift Cards

When it comes to gifting, few things beat the versatility and appeal of gift cards.  Gift cards can fill the awkward gifting gap that lies somewhere between impersonal but easily accessible cash and item specific presents that are difficult to return or replace if they end up not fitting the recipient’s needs.  A monetary paper note doesn’t exactly scream “I’m thinking of you” and those pink bunny slippers will most likely end up in the back of the cupboard until Aunt Agnes is over for the next holiday.

E-Gift Cards for Added Convenience

Enter the gift card.  For years, friends and family have been able to personalize their gifts through cards with value redeemable at the receiver’s favorite store, restaurant or service.  And with the advent of the digital age, physical cards are no longer a necessity, or even the preferable form of gift card giving.  E-gift cards have taken the flexibility of gift cards and added mobility by allowing the user to store the gift card number on their phone, in a retailer’s app, or even in the form of a QR code in an email.

E-gift cards also eliminate the need for the buyer to head into a physical store to make a gift card purchase.  With the click of a mouse, your e-gift card can be on its way.  Mobile phone and messaging apps are increasingly getting in on the e-gift market with sites like Facebook offering built in “send e-gift card now” type features.  In Apples newest release of its IOS 10 operating system last week, iPhone users can also send e-gifts through text messaging to other Apple product users.

Unused E-Gift Cards and You

While e-gift cards have been a boon in our increasingly on the go everyday lives, the lack of a physical item to remind you of a balance or even the existence of the card creates the potential for spoilage.  Spoilage, or unused gift card balances, count for 6-10% of the gift card market.  Here are a few other stats we’ve compiled on unused gift cards:

• 40% of people do not use their entire gift card balance
• 61% of gift card recipients spend more at the retailer than the balance of their gift card
• Some estimates say there is as much of $44 billion in unredeemed gift cards since 2008
• Per household, U.S. consumers have an average of $300 in unused gift card balances
• E-gift cards tend to have 10-15% higher starting purchased balances than physical gift cards
• The unused amount of a gift card is on average 6% of the original value

Cash-In, Trade, Buy or Sell Unused Gift Cards

An up and coming solution to the unused gift card dilemma, used gift card sites have proven to be convenient ways for consumers to buy, sell or swap out the unused portion of their gift cards.  These sites work by offering to buy unused or unwanted gift cards at a discount, then pooling the value or selling the cards outright to other people looking for a discount on merchandise from that particular retailer.  On average, users looking to sell or trade-in their unused gift cards can get up to 90% of their value and buyers can pick up gift cards at an up to 35% discount, depending on the popularity of the particular card.

Gift cards have continued to rise in popularity, and their use certainly shows no signs of slowing down.  While unused e-gift card balances can certainly put a damper in their spend-ability, gift card exchanges have stepped in to provide a modern solution.  As the autumn days count down towards the Christmas season, try out an e-gift card for your favorite someone spend less time shopping and more time relaxing and socialising with everyone on your gift list.