Interesting Facts About Gift Cards

@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
@TheHorse (203753)
• Walnut Creek, California
4 Jul 22
Cash on the barrel head, Son.
1 person likes 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
@porwest (78733)
• United States
4 Jul 22
@TheHorse The best part of cash is that I don't have to spend it. I can invest it, something I prefer.
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@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.
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@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 do this especially with Visa gift cards and stuff like that. I am not going to go hog-wild just because. It depends on the card though.
1 person likes this
@TheHorse (203753)
• Walnut Creek, California
4 Jul 22
Heh. I have long been aware that gift cards are a great deal for the businesses that sell them, but thanks for the numbers. I have a couple of dusty gift cats sitting behind my keyboard. I wonder if I'll ever use them.
1 person likes this
@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
@TheHorse (203753)
• Walnut Creek, California
20 Feb 23
@porwest Well, that's a part of their goal, isn't it? But I do try to use the ones I get as well Usually on stuff like underwear, long pants, shorts, etc.
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
5 Jul 22
I love gift cards as gifts. Mine get used. Sometimes I cash in my rewards for Amazon or Starbucks. Boggles my mind those who don't use them at least for most or as much as the card is worth.
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
@porwest (78733)
• United States
1 Mar 23
@noni1959 Some people say giving gift cards is cold and unthoughtful, but I find they are more useful...hey, someone can get what they want, especially with a card that can be used for anything.
1 person likes this
@porwest (78733)
• United States
20 Feb 23
I use them too, even when it sometimes costs me. For example, I used one we had for $50 at Longhorn and still wound up $70 out of pocket. Oh well. It was a nice dinner and my wife and I had a good time. lol
2 people like this
@RubyHawk (99437)
• Atlanta, Georgia
5 Jul 22
That’s why I never give gift cards. I sometimes receive them and I use every penny on the card.
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@RubyHawk (99437)
• Atlanta, Georgia
5 Jul 22
@porwest I only give gifts to close family members so I usually know what would be useful.
1 person likes this
@porwest (78733)
• United States
5 Jul 22
I tend to give them a lot. I have no idea what people want anymore and most likely I will give them something that will just be given away again, donated, or tossed out.
1 person likes this
@porwest (78733)
• United States
6 Jul 22
@RubyHawk Does not work for me. Everyone has everything these days. Even for me, if I need it or want it, I probably already have it. If you give me what you think I need or want, now I will have two of them. lol
1 person likes this
@akanetuk (2018)
7 Jul 22
Gift cards is a huge sector, and people invest a lot of money in it.
1 person likes this
@porwest (78733)
• United States
7 Jul 22
It is most certainly big business. No doubt about that.
@marlina (154183)
• Canada
4 Jul 22
Interesting to know
1 person likes this
@porwest (78733)
• United States
4 Jul 22
Of course, for me, anything money related fascinates me. lol
@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
@porwest (78733)
• United States
5 Jul 22
I know they exist. But I don't know of any. Partly because I don't use their services. I use the cards.
1 person likes this
@Adie04 (17364)
4 Jul 22
I wonder if gift cards consists of buying items or foods also can?
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@porwest (78733)
• United States
5 Jul 22
Gift cards are mostly store specific. But some are universal. It just depends on the card.
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@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
@porwest (78733)
• United States
4 Jul 22
I am the same way. If I have a gift card, I use it up. Every single cent.
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