Half of Americans currently own unredeemed gift cards or store credits according to a new survey from Bankrate. And that adds up to tens of billions in unused money.
The survey of over 2,600 U.S. adults found that the average person with unused gift cards is sitting on around $167 in free money. More than one-third of respondents with unused cards say they won't use up all of the funds. When you don't, the bank or retailer is happy to keep the money.
Luckily, if you received a gift card over the holidays you have at least five years to use up the balance, thanks to the 2009 Credit Card Accountability Responsibility and Disclosure (CARD) Act.
If you know you won't use up the whole gift card — for whatever reason — there are plenty of options.
Sell or get cash back for your unused gift cards
"If you've been holding onto a gift card from a store you don't like, there's nothing wrong with re-gifting it, using it to buy a gift for someone else, or even selling it," Bankrate analyst Ted Rossman tells CNBC Make It. You can also donate it.
You can sell your unused gift cards, or buy discounted ones, on sites including Cardpool.com, CardCash.com and GiftCardSpread.com, says Rossman.
How much you'll get for your cards will vary depending on the site, but typically ranges from 70% to 80% of the card's current value, says Rossman, depending on how popular the retailer of the card is. Starbucks, iTunes, Target and Walmart cards some of the most valuable.
That said, Rossman says to use caution when selling, as there are occasional complaints about the companies (you can look them up on the Better Business Bureau's website for more information). Test it out with one or two gift cards first to make sure you like the process and actually receive payment.
Some gift cards have inactivity fees, which typically kick in after 12 months or so. It's best to use your gift cards, or sell them, as soon as possible. Not only so you aren't charged the fee, but also in case the retailer closes before you can use it. When Sears filed for bankruptcy in 2018, shoppers scrambled to use up their gift cards, lest they lose their balances.
If your gift cards barely have any money left on them, you may be able to exchange them at the store for cash, depending on the state you live in, according to the National Conference on State Legislatures. California, Colorado, Maine, Massachusetts, New Jersey and a handful of others have different balance requirements. In California, you can get cash if your gift card has less than$10, whereas in Montana and New Jersey your card needs to have a balance of less than $5.
The one exception
Airline vouchers, which Bankrate included in its survey, are an exception. They typically have an expiration date, which will be printed on the voucher. But when you're booking your next flight, be sure to calculate whether you're still getting the best price, even with the discount.
"I've purposefully left some of the airline vouchers unused because they didn't fit into my travel schedule," says Rossman. "After pricing it out, I was still going to have to pay more out of pocket with that airline than buying a ticket from someone else."
Overall, Rossman says using your gift card, either to buy something or as a gift for someone else, is the best way to get the most value out of it. Bankrate suggests keeping them on hand in a convenient location — either in your car or purse, for example — instead of tucked away at home. You can also use an app like Gyft which tracks your balances in one place.
Rossman also suggests putting a calendar reminder in your phone before a big event, like a spouse's or parent's birthday, so you remember to spend it. That way you'll never waste your gift card balance again.
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