Americans Expected to Spend $30 Billion on Gift Cards This Holiday Season
In the spirit of giving, Americans are projected to spend a staggering $30 billion on gift cards this holiday season. With restaurant gift cards being the most popular choice, it is clear that people are eager to treat their loved ones to a night out or a meal at their favorite eatery.
According to Paytronix, an estimated 70% of gift cards are used within six months. However, what often goes unnoticed is the vast amount of money that goes unused or forgotten. Tens of billions of dollars’ worth of gift cards are left untouched, stashed away in forgotten drawers or lost in the shuffle of daily life.
To protect consumers, a federal law was enacted in 2010 to prevent gift cards from expiring for five years from the time of purchase or the last time money was added to them. Some states even impose longer expiration periods. This legislation aims to ensure that consumers have ample time to make use of their gift cards before they lose their value.
While the law provides some safeguards, experts caution recipients to spend their gift cards sooner rather than later. They advise against allowing gift cards to accumulate dust, as inactivity fees, depreciation due to inflation, or the potential closure or bankruptcy of retail stores can diminish their value over time.
In an effort to encourage the use of gift cards and prevent their potential wastefulness, National Use Your Gift Card Day has been designated for January 20, 2024. This initiative aims to remind individuals to utilize their gift cards and maximize their benefits.
For those who find themselves with unwanted gift cards, there are options. Gift card resale sites such as CardCash or Raise offer approximately 70 to 80 cents per dollar for unused gift cards. This provides an opportunity for individuals to recoup some of the value of their unwanted cards and convert them into cash or other desired items.
When gift cards go unused, the handling of the funds depends on the state where the retailer is incorporated. In at least 19 states, retailers are required to work with state unclaimed property programs to return the money from unused gift cards to the rightful consumers. To assist individuals in reclaiming their unclaimed property, including cash from unused gift cards, websites like MissingMoney.com, run by state unclaimed property offices, offer a platform for consumers to search and retrieve their lost funds.
As the holiday season approaches, it is important to consider the value of the gift cards we give and receive. By being mindful of expiration dates, making prompt use of our gift cards, and taking advantage of resale opportunities, we can ensure that the generosity of these gifts is fully realized and celebrated.
