About 20 of gift cards never are redeemed at the full value of the card

About 20% of Gift Cards Never Are Redeemed at the Full Value of the Card

Gift cards have become increasingly popular as a convenient and versatile gift option. They are often given for various occasions, such as birthdays, holidays, and special events. However, you might be surprised to learn that a significant percentage of gift cards are never fully redeemed.

According to studies, approximately 20% of gift cards are never used to their full value. This means that a considerable amount of money is left unclaimed, sitting idle on these cards. So why does this happen?

One of the primary reasons behind unused gift cards is simply forgetfulness. People receive gift cards, put them aside, and eventually forget about them. In the hustle and bustle of daily life, it’s easy to misplace or overlook them. These forgotten gift cards end up tucked away in drawers, wallets, or the bottom of purses.

Another reason for underutilization is that sometimes the gift cards are for stores or online platforms that recipients may not frequent. While the intention behind the gift is thoughtful, the recipient might not have a strong affinity for that particular store or find the gift card useful. As a result, it remains unused or partially redeemed.

Additionally, some people might not feel the need or urgency to redeem gift cards immediately. They might decide to save them for a later date or wait for a special occasion. However, as time passes, these cards run the risk of ending up forgotten or even misplaced.

Furthermore, certain individuals may find it challenging to spend the entire value of a gift card in one transaction. They might hold off on using the card until they have a more substantial purchase in mind. Unfortunately, these intentions can sometimes lead to the card never being fully utilized.

To combat the issue of unused gift cards, many businesses and retailers have implemented expiration dates or fees associated with unclaimed balances. While these measures might incentivize individuals to redeem their gift cards, they can also create a sense of pressure and urgency for the recipients.

As a gift card purchaser, it’s essential to consider the recipient’s preferences and the likelihood of them fully utilizing the card. Perhaps opting for more versatile gift cards, such as those that can be used at multiple stores or online platforms, can help increase the likelihood of full redemption.

In summary, approximately 20% of gift cards are never redeemed at their full value. Factors such as forgetfulness, lack of interest in the associated store, delayed usage, and difficulties in spending the entire balance can contribute to this underutilization. By choosing gift cards wisely and raising awareness about the value they hold, we can encourage more individuals to fully redeem their gift cards and enjoy the intended benefits.

Sources:

• Gift Card Granny: 20% of Gift Cards Go Unused (source)

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