What Happens To A Gift Card If You Don't Spend It? (2024)

Despite the popularity and uses of gift cards, many still go unused annually? Now, what happens to these gift cards? This article aims to address what happens to unspent gift cards.

There was a report by CNBC that gift cards worth $3 billion go unused every year. There are various reasons why gift cards may go unused. Gift card owners may forget they have one; it may be misplaced, expiration date, or be inaccessible to the retailer’s store due to location.

Reasons Why People Do Not Spend or Redeem Their Gift Cards

Gifting options: this is one of the major reasons why people buy gift cards. It’s a win-win situation for both the giver and the recipient. The convenience of purchase and the ability to buy whatever you want, respectively. Unfortunately, many still end up not using their gift cards. Now, let’s find out why people do not redeem their gift cards.
Misplaced/Stolen: it’s normal human behaviour to misplace items, including gift cards. When your gift card is misplaced, well, it’s obvious there is no way to redeem it.
Location: there are certain gift cards that can’t be redeemed outside the country it was issued. So, if you got an Amazon UK gift card and are currently not in the country, it can’t be redeemed until you go back.
Expiration dates: some gift cards are attached with an expiry date. Always read the terms and conditions on gift card packaging. If such gift cards are not used before the expiry date, they will be invalid.
Unwanted gift card brand: this can happen if you are being gifted a gift card. Imagine getting a Steam gift card and you aren’t a fan of games. It’s likely to go unspent.

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. Let me give an example. Let’s say you have a $500 Apple gift card and you only redeem $125, once it expires, Apple makes a total of $875 from the gift card purchase. It’s a term known as gift card breakage. It’s a total of the current gift card balance plus the original price. Now, think about it, why make the gift card make twice their money instead of spending it.

What You Can Do With Unspent Gift Cards

Swap them: this is recommended especially when you don’t like the gift card’s brand. Just find a friend, family or colleague that deals with gift cards and mostly wants to swap with you. Confirm they have the one you like and go ahead with it.
Gift them out: it’s understandable you don’t like the gift cards given to you. Instead of making it go to waste, why not gift it out? To avoid the mistake your giver did, ensure the person you want to give actually likes the gift card and there is a chance they will redeem it.
Donate to charity: donating your gift cards to people who may need them is a better thing to do than waste them.
Exchange for cash: this is mostly recommended if you still need to enjoy the value of your gift card. Whether you bought it yourself in the past or got it as a gift, it’s easy to exchange them for cash. To know the equivalent in your currency like Naira, leverage the rate calculator feature on Nosh.

Best Place To Sell Unused Gift Cards For Cash

The best place to sell gift cards for cash is Nosh. This is a great gift card exchange platform that will provide the best trading experience. Nosh offers the best rates for all gift cards and you can exchange them anytime any day. The platform is easy and convenient to use even for a new user. In case of questions or queries, you can easily contact customer support via live chat, email, or contact number.

How To Sell Gift Cards In Nigeria

Here is a step-by-step guide to selling gift cards on Nosh

The first step to creating an account. You can do this on the Nosh website or download the mobile app.
Enter the correct details to sign up.
Login to your account to access a personal dashboard.
Click on “Sell Gift Cards.”
Input your gift cards details like name, sub-category, and the amount.
Click on “Begin Trade”

Conclusion

Many gift cards go unspent annually due to various reasons. This only means a benefit to the issuing brand and a loss to the gift card owner. Instead of losing the gift card, you could gift it out, swap it with friends, or exchange it for cash. You can sell gift cards to naira seamlessly on the Nosh platform.

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FAQs

What Happens To A Gift Card If You Don't Spend It? ›

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.

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What happens if you spend less than your gift card? ›

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. Likewise, if you choose to buy something that costs less than the balance of your gift card, you can.

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What happens if a gift card doesn't have enough money? ›

Depending on where you make a purchase, you may be able to use your Gift Card toward a portion of the final purchase price, and use another form of payment to pay the balance. If the business agrees to a split payment for the transaction, ask them to charge a dollar amount up to the remaining balance on your Gift Card.

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What happens to the remaining amount in a gift card? ›

If the order value is less than the amount of the Gift Card, the outstanding balance (after deduction of order value) will reflect under the same Gift Card and can be used for subsequent transactions.

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What happens if a prepaid card is not enough? ›

There isn't enough money on the card

For example, if you have $4.27 on your prepaid card, but try to buy a $5 item, the transaction will fail since the card balance is insufficient. Again, this differs from credit cards and debit cards, which are linked to credit limits or bank accounts with overdraft protection.

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What happens if you spend more than what's on a Visa gift card? ›

The merchant may split the transaction and allow you to pay for part of your purchase with the Gift card, and then the remaining part of your purchase with another form of payment, such as a credit, debit or cash. Your remaining card balance may be less than the value of the item you wish to purchase.

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Is $25 gift card too little? ›

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.

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What do I do if my Visa gift card doesn't have enough money? ›

Visa gift cards are a one-time use gift card loaded with a predetermined amount chosen at the time of purchase. However, as they are prepaid cards, these accounts cannot be overdrawn. So, if you try to make a payment with insufficient funds, the Visa gift card won't work, and the payment will be declined.

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Do you have to spend the full amount on a gift card? ›

If you do not spend the entire balance on the gift card /e-gift card, the remaining balance will be updated after each transaction. If spent in store, the remaining balance is shown on your printed till receipt.

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How do I get rid of unused gift cards? ›

Won't use the gift card and don't need the cash? Find someone else who'll take it off your hands. You can regift the card or donate it to a good cause. CharityChoice, an organization operated by a nonprofit, allows you to donate unwanted store and restaurant gift cards to your choice of more than 2,500 charities.

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What happens if you overdraw a gift card? ›

Your transaction will be declined. Chances are the cashier cannot tell you how much there is on the card.

What happens if your Visa gift card doesn t have enough money on amazon? ›

If the purchase exceeds your Visa Gift Card balance, you must provide another payment method to cover the remaining cost. Choose another credit card, debit card, or payment option to pay the difference.