Unlocking the Value of holiday season brings joy, festivities, and often, a surplus of gift cards. These little tokens of generosity, however, often find themselves relegated to the back of drawers, unused and forgotten. If you’re among the many with idle gift cards, there’s good news – you might be able to transform them into cash.
The Gift Card Dilemma: Unused and Undervalued
During the winter holiday season, gift cards rank high on the list of popular presents. According to the National Retail Federation, 44% of consumers planned to gift a card in 2023, second only to clothing at 56%. However, a startling revelation from a 2023 Bankrate survey indicated that 47% of U.S. adults possess at least one unused gift card, with a cumulative national value of $23 billion.
The average value per person has seen a significant uptick, soaring to $187, marking a substantial 61% increase from $116 in June 2021, as reported by Bankrate.
Unlocking the Value of Cash from Idle Cards: Online Platforms Offer Solutions
Thankfully, various online platforms provide a remedy for this widespread issue. Websites like Raise.com, CardCash.com, and GiftCash.com offer consumers the chance to sell their unused gift cards for cash. These platforms operate on different financial models, either paying a percentage of the card’s value or functioning as a marketplace where buyers bid on cards, akin to an eBay for gift cards.
John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League, encourages individuals not to leave their gift cards languishing in drawers, highlighting the potential for monetary gain.
Financial Models: How Platforms Convert Gift Cards to Cash
Ted Jenkin, a certified financial planner based in Atlanta, mentions that some platforms pay a percentage of the card’s value, while others operate similarly to an auction. This versatility allows users to choose the method that best suits their preferences.
One aspect to consider is the tendency of gift card recipients to overspend. Retailers strategically market gift cards, anticipating that recipients will spend more than the card’s face value. This phenomenon contributes to retailers driving additional sales, making gift cards a lucrative market.
Navigating the Exchange: Tips and Precautions
While the opportunity to turn gift cards into cash is enticing, caution is advised in the exchange process. Using reputable platforms like Raise.com and CardCash.com is recommended, steering clear of potentially fraudulent platforms on Facebook Marketplace or Craigslist.
Before engaging in transactions, conducting due diligence is crucial. Checking with the Better Business Bureau and conducting a simple Google search with the term “scam” alongside the platform’s name can provide valuable insights.
John Breyault warns against potential scams and suggests verifying the legitimacy of a platform by checking for a working customer service phone number. A disconnected number or a full voicemail inbox could be red flags.
Beyond Cash: Alternatives to Unused Gift Cards
Apart from selling, there are alternative options for those with unused gift cards. Donating them to charity or regifting them are thoughtful alternatives. Moreover, some states have laws requiring retailers to provide cash back for partially used gift cards, offering additional avenues for users to Unlocking the Value.
As you bid farewell to the holiday season, consider unlocking the hidden potential of those forgotten gift cards – turning dust into dollars and putting those funds to good use.
FAQs: Navigating the Gift Card to Cash Transformation
1. Q: How can I turn unused gift cards into cash?
- A: Online platforms like Raise.com, CardCash.com, and GiftCash.com allow users to sell their unused gift cards for cash.
2. Q: What financial models do these platforms use for converting gift cards to cash?
- A: Some platforms pay a percentage of the card’s value, while others operate as a marketplace where buyers bid on cards.
3. Q: Are there risks associated with selling gift cards online?
- A: Caution is advised, and using reputable platforms is recommended. Avoid platforms like Facebook Marketplace or Craigslist, which may pose fraud risks.
4. Q: What alternatives exist for those with unused gift cards?
- A: Alternatives include donating gift cards to charity, regifting, or, in some states, retailers providing cash back for partially used gift cards.
5. Q: How can users verify the legitimacy of an online platform before selling their gift cards?
- A: Conduct due diligence by checking with the Better Business Bureau, performing a Google search with the term “scam,” and ensuring the platform has a functional customer service phone number.