Gift cards are one of the most requested gifts, but how much of the value is never used?
Answer:The average unused amount is $187 per person, for a total of $23 billion.
Questions:
- Why do you think that the balance on unused gift cards is so high?
- What strategies can a consumer use to make sure that they don't lose track of their gift cards?
- Although gift cards are often asked for, would knowing that many people don’t use gift cards impact your decision to give gift cards as presents?
Here aretheready-to-go slidesfor this Question of the Day that you can use in your classroom.
Behind the numbers(CBS):
"After clothing, gift cards will be the most popular present this holiday season. Nearly half of Americans plan to give them, according to the National Retail Federation.
But many will remain unspent. Gift cards get lost or forgotten, or recipients hang on to them for a special occasion. In a July survey, the consumer finance company Bankrate found that 47% of U.S. adults had at least one unspent gift card or voucher with an average value of $187. That's a total of $23 billion."
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About the Author
Ryan Wood
Ryan grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.
FAQs
Question of the Day: What is the average value of unused gift cards per person in America? Gift cards are one of the most requested gifts, but how much of the value is never used? Answer: The average unused amount is $187 per person, for a total of $23 billion.
How much unused gift card money is out there? ›
Many Americans don't use their cards. To that point, 47% of U.S. adults have at least one unused card, according to a 2023 Bankrate survey. Nationwide, those unused balances are worth $23 billion, the report found.
How much money is left on gift cards? ›
Start by looking at the back of your gift card. Typically, you'll find a toll-free number you can call to discover your balance. Or you can check your balance by visiting the card issuer's site and entering your card's 16-digit number and security code.
Do companies make money off of unused gift cards? ›
How much do companies make from unused gift cards? Generally, a large business calculates the cost of remitting a card from unused cards that will not be refunded despite a high rate of redemption based on historical averages. Some firms are big profit-driven by profits.
Do gift cards lose money if you don't use them? ›
While it may take gift cards years to expire, experts say it's still wise to spend them quickly. Some cards — especially generic cash cards from Visa or MasterCard — will start accruing inactivity fees if they're not used for a year, which eats away at their value. Inflation also makes cards less valuable over time.
How to turn unused gift cards into cash? ›
You can sell or exchange unwanted gift cards at third-party marketplaces and gift card resale platforms, usually for less than face value. Take precautions to avoid fraud if you trade or sell gift cards online.
Is $50 dollars too much for a gift card? ›
Fifty dollars goes a long way, and you can use it for the kinds of stores suitable for multiple purchases, like some of the other options on this list. If, for instance, your friend loves to go to Starbucks, spending $50 on a gift card provides them with a lot of value. That's enough about Starbucks.
Is $100 too much for a gift card? ›
For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100. When you're selecting a gift card for a spouse, parent or someone else who's very special, choose a card worth $75 or more.
How much money is outstanding on gift cards? ›
Average unspent per card
Gift cards get lost or forgotten, or recipients hang on to them for a special occasion. In a July survey, the consumer finance company Bankrate found that 47% of U.S. adults had at least one unspent gift card or voucher with an average value of $187. That's a total of $23 billion.
Do companies make money from gift cards? ›
When customers spend with a gift card, they're more likely to indulge in additional purchases, often extending beyond the gift card's original value. This means your business could generate revenue twice—once when the gift card is purchased and again when it is redeemed.
Gift card fraud is on the rise, and scammers will continue looking for ways to easily access "free" money. If you're going to purchase a gift card in the near future, do your due diligence to protect yourself and the person you're buying the card for.
How much money is wasted on unused gift cards? ›
Gift cards are one of the most requested gifts, but how much of the value is never used? Answer: The average unused amount is $187 per person, for a total of $23 billion. Questions: Why do you think that the balance on unused gift cards is so high?
Should I throw away empty gift cards? ›
CreditCards.com points out, the number of gift cards created annually has "the potential to add 75 to 100 million pounds of polyvinyl chloride (PVC) material to landfills." So, you could upcycle yours in any number of ways: Use it as a bookmark.
What happens if you use a gift card that doesn t have enough money? ›
If you want to buy something that costs more than the balance on your gift card, all you need to do is give your retailer another payment method, like cash or debit card, to pay for the remaining cost.
What is the average gift card amount? ›
The gift card amount people purchase depends mainly on their budget. According to a survey conducted on over 1000 participants, more than 40% said they would spend between $20- $25 on Birthday Gift Cards. This is to say that most people will spend an average of $25 on Birthday Gift Cards.
How much money is tied up in gift cards? ›
In fact, a recent survey from Credit Summit shows that on average, there is as much as $21 billion tied up in lost or unredeemed gift cards. Fortunately, current laws prohibit them from being sold with expiration dates (unless the gift card is sold at a discount).
What happens to unused gift card funds? ›
So What Happens To Unspent Gift Cards? The simple answer is that the issuing company or retailer gets to benefit from that. Once a gift card reaches its validity period and it's still unused or there is a leftover balance, the issuing company gets a certain amount back.
