What Happens To Expired Or Unspent Gift Cards?

Have you ever wondered what happens to expired or unspent gift cards? Do they go extinct, or is someone somewhere using them? Before I answer this, let’s talk about gift cards a little.

The origin of gift cards can be traced to a brilliant marketing tool created by Blockbuster. The goal is for brands to retain customers while providing them with a convenient shopping experience both in-store and online. Today, both small local businesses and large-scale ventures have incorporated gift cards into their daily use.

While gift cards may look great, their real value lies in the money on them. The card owner can spend money because they possess the card. However, what happens if the owner didn’t use the gift card? Does the money go somewhere, or is there something more to it? Keep reading.

What Happens When Gift Cards Go Unspent?

Did you know that there is a term for when a gift card goes unspent and expires? Yes, this is referred to as “gift card breakage.”

The short answer is that the issuing brand benefits from gift card breakage. However, there is a long answer that shows you how. Let me explain.

When a company sells a gift card, it records the transaction as an advance payment because it expects you to redeem it later. However, if the card expires or remains unused, a portion of the leftover balance is returned to the company. The rest of the money depends on state laws and applicable taxes.

In summary, the issuing brands are the real winners when you don’t use your gift cards. To avoid handing free money to corporations, the smartest move is to redeem your gift cards early.

Benefits Of Redeeming Gift Cards on Time So It Doesn’t Go Unspent

According to a study on redeeming gift cards, 80% of owners use their gift cards within the first 6 months. However, it drops to 10% from the ninth month.

Now, let’s talk about some of the benefits of redeeming gift cards on time so it doesn’t go unspent;

Beat Inflation

Inflation is the steady increase in the cost of goods and services over time. The sad news is that it happens everywhere. The good news is that by redeeming your gift cards early, you get the most value out of them. If you wait too long, inflation eats into your purchasing power, and the same card won’t buy as much as it once could.

Redeeming When The Brand is Functioning

Any business can pack up. However, it is often the case with small-scale businesses. However, medium and large businesses can experience this unfortunate situation on rare occasions. If the card issuer goes under, your gift card becomes useless.

Avoid Losing Your Gift Card

To err is human, and to misplace a gift card is completely normal. You would agree that the chances are higher if you are a bit careless. Hence, it’s better to redeem your gift card as soon as possible before this possibility.

How To Make Use Of Your Unused Gift Cards

There are two ways to make use of your unused gift cards. They include;

Swap Them

Swapping your unused gift cards is tedious, but you can try it. You can put it on your WhatsApp story for family members, friends, or colleagues who have a gift card you want and are ready for yours. Try it out and see.

Sell Them For Cash

This other option is straightforward, instant, and smooth if you use the right platform. Ridima is the best place to sell your gift cards for cash if you are in Nigeria or Ghana.

Frequently Asked Questions About Expired or Unspent Gift Cards

Here are some frequently asked questions about unused or expired gift cards;

Question 1: Is there anything I can do with an expired gift card?

No, there is nothing you can do with an expired gift card. The reason is that no company will accept an expired gift card when you want to purchase in their store.

Also, you cannot sell an expired gift card for cash. The solution is to always redeem your gift card before it expires.

Question 2: Can gift cards expire?

Yes, some gift cards expire. Hence, it is better to keep track of your gift cards before they expire.

Question 3. Where can I convert my unused gift card to cash?

Ridima is the best place to convert your unused gift card to cash. However, the platform does not accept an expired gift card. Ensure you convert your unused gift card to cash before it expires.

Question 4: Can I redeem expired Visa gift cards?

Visa’s policies allow you to use a Visa gift card until the funds are fully depleted. This means there is no regard for the printed expiration date on the card. However, some platforms may deny an expired Visa gift card. One solution to consider is contacting the card issuer to determine if a free replacement card is available before the expiration date.

Question 5: What happens to the money on expired gift cards?

The money on an expired gift card returns to the issuer brand. This is known as gift card breakage.

Question 6: Can I get a refund for an unused gift card?

No, you cannot get a refund for an unused gift card, as most companies’ policies don’t support this. Your best buy is to redeem your unused gift card before it expires.

Conclusion

Unused or expired gift cards may seem harmless, but in reality, they mean lost value for you and easy profit for the issuing brand. Whether it’s inflation eating into their worth, the risk of losing them, or the chance that a business could fold, waiting too long only increases the chances of wasting your money.

The smartest move is to redeem your gift cards early or convert them to cash on a trusted platform like Ridima. That way, you stay in control of your money and avoid handing free wins to corporations. Don’t let your gift cards gather dust; turn them into value while you still can.

References;

What Happens To Expired Or Unspent Gift Cards? – Cardtonic

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