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Give An Unused Giftcard
January 14, 2010 by jcamille
Filed under Apartment Living
Gift cards are a very popular option for gift giving.
The National Retail Federation estimates that retailers will sell more than $25 billion in cards this year alone. Between $1.75 billion to $3.5 billion of these cards will never be used with entertainment cards having the largest percentage of non-use. Grocery gift cards consistently are used rapidly and for the full value.
Research has shown that retailers assume that after a certain period of inactivity the card will not be used; even those without expiration dates.
Some retailers then move unused gift card credits from a liability account to an income account. For example, Home Depot reported $37 million in revenue from unused gift card credit, American Eagle Outfitters collected more than $12 million and Limited Brands, Inc., owner of the Victoria Secret chain, added $30.4 million to fourth-quarter revenue.
If a gift card is more than a year old some stores subtract monthly maintenance fees. Texas and New York collect unused gift card credits revenue as unclaimed property and South Carolina is considering legislation to allow that state to do the same.
In Japan, gift card balances are stored on cell phones rather than on plastic. Until that technology comes to the United States what can we do to prevent losing value on a gift card?
If the card has expired contact the issuer; they may reactivate the card for a small fee. Many cards are being sold on eBay for 90 percent or more of their face value. There are a number of other Web sites that trade, buy or sell gift cards with various fees. Some worth checking:
