Interesting Facts About Gift Cards
By Jim Bauer
@porwest (78733)
United States
July 4, 2022 7:37am CST
It is no secret that for a variety of reasons gift cards are huge money for businesses. In fact, in 2019 it is estimated that people bought around $171 billion worth of them.
At any given time, how much money is left unredeemed? Roughly anywhere from 10-19%. Granted, that is not money that will never be redeemed. That's just what's out there at any given time being "held" unredeemed.
Businesses still account for this money differently, though. A company holds the money essentially until the cards are actually redeemed. They can also earn interest on that money while they wait.
It is estimated that roughly $3 billion to $5 billion a year never gets redeemed at all. And while that's a lot of unused money that eventually the company can and does get to keep at 100% profit, they actually want you to use the cards.
Generally, people who use gift cards tend to spend more money than what's on the card and are more inclined to buy full-priced and higher priced items than they would otherwise if they were spending their own money.
12 people like this
10 responses
@1creekgirl (40183)
• United States
4 Jul 22
I used to like gift cards, but I really don't now. VISA cards are supposed to be so great because you have more places to spend them. But at some places, they'll be rejected if your purchase is more than what's on the card. And it's a pain trying to keep up with what's left.
Just give me cash.
2 people like this
@porwest (78733)
• United States
4 Jul 22
@1creekgirl I am with you on this, but then again, free money is free money. I just usually write the balance on a gift card with a Sharpie.
1 person likes this
@lovebuglena (42913)
• Staten Island, New York
4 Jul 22
That's where I am different. Even if I have a gift card I still look for bargains and don't get anything unless the price is right for me.
1 person likes this
@lovebuglena (42913)
• Staten Island, New York
22 Feb 23
@porwest I still wanna save even if not my money I’m spending.
1 person likes this
@porwest (78733)
• United States
25 Feb 23
@lovebuglena Me too, and why not? The more I save the more I get for whatever money I have, and the less of my own I have to spend.
@porwest (78733)
• United States
20 Feb 23
I tend to make it a point to use them just because. Why let them have free money? It's funny, once I used a $50 gift card we got for Longhorn and we wound up still spending $70 out of pocket just to use it. I wonder if it may have been better to just let them have the $50?
1 person likes this
@porwest (78733)
• United States
22 Feb 23
@TheHorse That IS their goal. It's sort of like what Walmart and many other retailers do called "loss leaders." They will gladly sell a gallon of milk at a loss if they can interest you in more profitable things elsewhere in the store. And of course, that's why the milk is in the back. Not the front. lol
1 person likes this
@noni1959 (9842)
• United States
24 Feb 23
@porwest I used them to offset cost too. I was given one for the Cheesecake Factory and it took $50 off an $80 something bill. I was treating a couple others. One of my granddaughters wants a VISA GC when getting gifts. She is saving up and hoping between all of us, she can reach her goal.
1 person likes this
@LindaOHio (153156)
• United States
5 Jul 22
You could have mentioned those companies that let you turn in those cards and purchase others at a discount. Have a good day.
1 person likes this
@Beestring (13068)
• Hong Kong
4 Jul 22
Thanks for the information. It's a bit surprising that so much money left unredeemed. When I get a gift card, I usually redeem it as soon as possible. I'm afraid that I may lose it or forget where I place it.
1 person likes this