Gift cards have become a popular choice for holiday gifting, offering flexibility for recipients. However, many gift cards go unused, leading to financial loss for both givers and receivers. A study from Bankrate in 2024 revealed that over one-third of Americans have lost money on gift cards due to expiration, misplacement, or retailer bankruptcy. To prevent this from happening, it is crucial to understand how to effectively manage gift cards.
Understand the Fine Print
Before using a gift card, it is vital to review its terms and conditions. Some gift cards come with expiration dates, although many remain valid indefinitely. According to The Wall Street Journal, recipients should carefully check the packaging or email confirmation for specific details.
While many cards, particularly those issued by banks or credit card companies, may have a “valid thru” date, this indicates when the card itself expires rather than the balance. Additionally, some cards may begin charging maintenance fees after a period of inactivity. For example, a Visa Virtual Gift Card may incur a monthly fee of $4.95 after 12 months of no transactions, depending on state laws.
Track Your Balance and Use It Wisely
Once you have a gift card, keeping track of its balance is essential. If after an initial purchase you find that a small amount remains, it is advisable not to let it go to waste. You can keep the remaining balance for future purchases or consider reloading the card and gifting it to someone else for an upcoming occasion. Consumer Reports suggests that if the balance is low, you might even ask the retailer for the remaining amount in cash. In some locations, laws permit this when the outstanding balance is under a certain threshold, often $10.
Another option is to donate the remaining funds to a nonprofit organization that collects gift card donations. This ensures that the money goes to a good cause rather than becoming unusable.
Avoid Scams and Keep Your Card Safe
For those who do not plan to use their gift cards immediately, it is wise to register or record the card information. According to The Wall Street Journal, loading your balance onto an account can help protect against fraud and ensure that you can access the funds if the card is lost.
Exercise caution when checking your balance or attempting to sell your gift card through third-party platforms. Consumer Reports warns that these transactions may expose you to scams or theft. By taking proactive steps, you can maximize the value of your gift card and avoid losing funds.
In summary, understanding the terms of your gift card, tracking its balance, and safeguarding it against potential fraud are integral to making the most of your holiday gift. With the right approach, you can ensure that your gift card delivers value, rather than disappointment.
