Americans Expected to Spend $30 Billion on Gift Cards This Holiday Season
As the holiday season approaches, Americans are gearing up to spend a staggering $30 billion on gift cards. Amongst the popular choices, restaurant gift cards are expected to take the lead. However, while around 70% of gift cards are used within six months, a significant portion of them end up forgotten or unused, resulting in tens of billions of dollars’ worth of wasted value.
A recent survey conducted in the United States revealed that 47% of adults had at least one unspent gift card or voucher, with an average value of $187. In total, this amounts to a whopping $23 billion of unutilized funds. These unredeemed gift cards can easily accumulate and go unnoticed as they often get lost among other items or simply slip the mind of the recipient.
To safeguard consumers from losing their hard-earned money, federal law prohibits gift cards from expiring for a minimum of five years from the time of purchase or the last time money was added to them. Some state laws impose an even longer expiration period. However, it is advisable for individuals to use their gift cards promptly to avoid inactivity fees and the unfortunate circumstance of a retail store closing or going bankrupt.
To promote the active utilization of gift cards, January 20, 2024, has been designated as National Use Your Gift Card Day. On this day, individuals are encouraged to make the most of their gift cards and ensure they are not left to waste away.
In the event that a gift card becomes unwanted or remains unused, consumers have the option to sell them on resale sites like CardCash or Raise. These platforms offer around 70 to 80 cents per dollar on the value of the card, providing a way for individuals to recoup some of their investment.
Interestingly, retailers take into account a concept called “breakage,” which refers to the amount of gift card liability they believe will not be redeemed. In certain cases, this unclaimed value becomes a profitable source of revenue for retailers.
To tackle this issue at a legislative level, at least 19 states have implemented regulations requiring retailers to work alongside state unclaimed property programs. This ensures that money from unspent gift cards is returned to the consumers.
For those interested in determining if they have any unclaimed property, including cash from gift cards, there is an online resource available. The website, MissingMoney.com, is jointly operated by state unclaimed property offices and allows consumers to search for any unclaimed funds, presenting an opportunity to rediscover forgotten value.
As the holiday season approaches, it is crucial for consumers to be aware of the value of their gift cards and take necessary steps to ensure they are put to use. With millions of dollars’ worth of gift cards going unused each year, it is important to stay informed and prevent valuable resources from being wasted.
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