Holiday Shopping 2011: Billions Of Gift Card Dollars Left Unspent

Many a gift recipient have smiled politely when they unwrap a present and find something that they know they'll never use.

But as it turns out, gift cards -- which are often marketed as a way to appease the person who is tough to buy for -- are often wasted themselves, according to the National Retal Federation. Roughly $41 billion in gift cards have not been used since 2005, NBC and ABC local affiliate WALB reports.

Even though many don't use the money on their gift cards, eight in ten Americans planned to give them this holiday season, the NRF found. Gift card spending accounts for one part of holiday retail sales that the NRF predicts will rise nearly four percent.

There are alternatives to letting unwanted gift cards languish in your wallet. Unhappy gift card recipients can regift them through sites like Plastic Jungle, which offer customers an opportunity to sell their cards for close to face value, Consumer Affairs notes.

But if the gift cards go unspent some state governments may benefit. Some states demand that stores give unused gift card money to the state after a certain period of time, the Wall Street Journal reports.

Consumers can claim their funds at any time, but until they do, states can use the cash for "general purposes" the Journal reports.

Comments

[fortressfountain]

12:45 PM on 12/29/2011

I would think people would sell them for cash as when you check out websites they expect you to trade the cards and will pay you 90%.
I think 50% of the cards value-quick is worth it to me.

[castlemike]

09:45 AM on 12/29/2011

So why isn't the total amount of gift cards cited since 1995?

Probably because the $41 Billion is a small percentage of the total.

[archarabia]

01:48 AM on 12/29/2011

"Gift card" is a misnomer. It's a merchandise/service credit. @ least cash

[bipolarbears60]

12:24 AM on 12/29/2011

This is just way too easy to solve. Give CASH. It spends at every store. You don't have to worry about not getting your change back (you know, when the store keeps that $1.76 from the difference in your $20 gift card and your $18.24 purchase, so you either have to buy more stuff using your own cash, make a second trip -- yada yada yada) You can even deposit CASH in your debit card account and buy iTunes with it (or anything else).

Granny always gives crisp new bills straight from the bank.

[Debbie Wathen Clute]

01:31 PM on 12/29/2011

When I give cash, the $$ are usually just put in the recipient's general fund and is not used towards a gift for themselves. Of course, that applies to an adult, the kids will always spend the $$ on themselves, so I agree with you there. The gift card, if used sort of forces them to spend it on themselves for something they would normally not buy for themselves.

[bahkey]

11:43 PM on 12/28/2011

It's dec. 28 , jesus give it time.

[rbmnobody]

11:33 PM on 12/28/2011

My husband has received a number if iTune gift cards over the years. He has yet to get one of them to work. Consequently, Apple is making money from them without incurring any costs, in this case, a total of $75. I know of others who have had the same problem with the iTunes cards. Attempts to use the 'Help" menu do not work.

[Seattlewkr]

11:03 PM on 12/28/2011

Amazing! Just where in the H do states get off claiming unclaimed gift card funds! Talk about extortion. Unused gift card funds should go to the store that the card represents instead of states.

[Jonathan Blanco]

09:06 PM on 12/28/2011

spamer

[Christina-Xena]

09:17 PM on 12/28/2011

SPAM and FLAGGED!!

[dxjj1]

08:11 PM on 12/28/2011

Money should be returned to buyer of gift card less % for transaction.

[Christina-Xena]

09:20 PM on 12/28/2011

Or cash to the receipiant of such gift cards. Just put their name on the back, and even develop a way to put their name in the coding on the card at the time of purchase.

[Scurvydog74]

08:00 PM on 12/28/2011

Like a Visa card that you can only use if the purchase you are making is less than the value of card which always dies with an unused balance. When my father passed away he had accumulated dozens of Walmart gift cards with a dollar here and a few dollars there that all expired long before he did.

[Christina-Xena]

09:22 PM on 12/28/2011

I believe most modern cards allow you to use them as part of a transaction, and you can pay the rest by another means.

But I agree that the first ones made had too many restrictions and short time expirations.

[Mykidzmommy1]

09:27 PM on 12/28/2011

walmart gift cards dont ever expire, the money on it stays on it and as for a dollar here and a dollar there , you can tell the cashier what is on each card if its just 50 cents and she can punch the amount in so you can use every cent

[XS VENOM]

07:40 PM on 12/28/2011

Cash, it's used everywhere. And gas is cheaper if you use cash too. Keep your stupid gift card, just give me the cash. I wont complain, I will still love you.

[Scurvydog74]

08:03 PM on 12/28/2011

But it's harder to put cash on your credit card...

[Christina-Xena]

09:26 PM on 12/28/2011

True, so if you have too pay by credit (no irony intended) make sure it's to a store the reciever usually shops.

[jdevans]

10:34 PM on 12/28/2011

Target and Walgreen stores allow you to get cash back after your credit card transaction.

[ludichris212]

07:17 PM on 12/28/2011

If you get a gift-card as a gift, use it and use it immediately.

The gift-card issuers are counting on you losing it, not using it at all, or not using the full amount when you do make a purchase.

[Christina-Xena]

09:32 PM on 12/28/2011

And if you don't shop at that store, sell it or exchange it ASAP for a store you do prefer, even if you lose some value in the process. Also you might wish to inquire at the store about just cashing the gift card or applying it to any credit card balance you might have at that store.

Also find out what happens if you buy with the gift card and later return the item...do you get cash or another gift card back?

But especially don't put it in some drawer where you will likely forget about it.

[ludichris212]

12:52 AM on 12/29/2011

Hear! Hear!

[Jay Gould]

06:53 PM on 12/28/2011

The most interesting part of this story, I think, is that "some states" demand that any unspent gift card dollars should be given to them. That is outrageous! If anyone should have a claim on any unspent amount, that should be the cardholder and no one else.

My experience tells me that the vast majority of Americans think that any unspent amount is collected by the retailer whose name is on the card. Well, that is incorrect. All unspent amounts are actually collected by the gift card issuers.

[Christina-Xena]

09:35 PM on 12/28/2011

I think the idea is not to let gift cards be a windfall for the retailers if the cards are never used. And I agree with that portion of the issue. However, I do agree with NOT letting states use it as some hidden tax or windfall, and should go into some special fund, apart from normal approporations, and then any percentage over a certain level be given to charities, and make lifetime redemption possible if they cards ever show up again.

[Seattlewkr]

11:05 PM on 12/28/2011

Why shouldn't the retailer get the money? I don't understand this logic at all.

[averagezoe]

06:42 PM on 12/28/2011

I've only received a gift card as a present once and it was for Walmart. (I have cheesy acquaintances) But it did come in handy, I blew the whole wad on cat litter.

[timmay0014]

06:11 PM on 12/28/2011

#firstworldproblems