A Reminder That Many Gift Cards Go Unused

By Brad Tuttle | @bradrtuttle | June 30, 2009 | +

As the WSJ reports, many states are boosting revenues by collecting so-called “abandoned property,” including unused retail gift cards. If a card is not used in as few as two years after being purchased, the states can claim the card’s value.

States are supposed to track down the card owners and get them their money back, but often that’s impossible. Many gift cards are purchased with cash and are totally untraceable. If that’s the situation, the state generally collects the money. New York, for instance, collected $9.6 million in unused gift cards in 2008. And that’s just the tip of the iceberg: About $65 billion is spent on gift cards in the U.S. annually, and $6.8 billion of that is never redeemed.

So if you’ve got gift cards lying around the house, try to use them. And if you’re thinking about buying one as a gift, consider cash instead. You know that’ll get used.

Related Topics: gift cards, Uncategorized, Uncategorized

@TIMEMoneyland

Latest on Moneyland

Smart Spending February 10, 2012

Survey: Costco Given Retail Crown for Best Shopping Experience

American consumers don’t just like buying in bulk—they like the shopping experience at one bulk-buying warehouse store a lot more compared to other retailers. Based on the results of a new survey, Costco has been named the retailer scoring the highest overall ratings with shoppers.
From our Partners
Is an Amazon Store in the Real World a Good Idea?Daily Finance

Greek Leaders Reach Deal On Austerity MeasuresThe Huffington Post
Which Credit Card Rewards Does the IRS Care About?Daily Finance
Mark Zuckerberg's Big Bonus RevealedThe Huffington Post
Odd Spending February 10, 2012

Pizza Hut Valentine’s Day Special: Pizza Selling for $10,010*

*The deal also includes flowers, limo service, fireworks, a videographer, photographer, and a red ruby ring—that you’re supposed to propose with. Whether you propose before or after eating pizza, breadsticks, and cinnamon sticks is your call.

http://cheapskate.blogs.time.com/2009/10/01/amex-drops-some-gift-card-fees-know-what-you-still-shouldnt-buy-them/ Amex Drops Some Gift Card Fees. Know What? You Still Shouldn’t Buy Them – The Cheapskate Blog – TIME.com

[...] recipient is all but certain to use the cash. But the gift card? Who knows? Each year in the U.S., $6.8 billion—yes billion—worth of the gift cards bought are never redeemed. If you actually want the recipient to get something out of your gift, cash makes more sense—even [...]
http://cheapskate.blogs.time.com/2009/10/08/unthinkable-elbow-room-at-the-mall-this-winter-holiday-shopping-season/ Unthinkable: Elbow Room at the Mall this Winter Holiday Shopping Season – The Cheapskate Blog – TIME.com

[...] on what stores are goners, WalletPop lists a bunch of them. Here's hoping that you don't have an unused gift card from any of the recently [...]
http://cheapskate.blogs.time.com/2009/10/13/gift-card-promotions-gimmicks-or-good-values/ Gift Card Promotions: Gimmicks or Good Values? – The Cheapskate Blog – TIME.com

[...] usual shopping savvy disappears and you're more likely to buy items at full (non-discounted) price. You're also fairly likely to not use gift cards at all. Some estimates say that 10% of gift cards go [...]
http://money.blogs.time.com/2009/11/17/feds-next-target-gift-cards-fees/ Fed’s Next Target: Gift Card Fees – It's Your Money – TIME.com

[...] Regardless of what kind of gift card we're talking about or what the rules and fees involved are, take into consideration when you're shopping that a whole lot of gift cards are never used. [...]
http://money.blogs.time.com/2010/09/09/so-is-it-a-good-idea-to-give-gift-cards-now/ So Is It a Good Idea to Give Gift Cards Now? – It's Your Money – TIME.com

[...] card won't be used at all. According to one study, of the $65 billion spent annually on gift cards, $6.8 billion is never redeemed. Now that's really [...]
http://www.mallabo.net/work/my-big-fat-wallet/ My big fat wallet | Jose Mallabo. More or Less.

[...] spend $65 billion on annually (a 2009 estimate) on gift cards with almost $7 billion of it going unused. That’s one tenth of [...]
http://money.blogs.time.com/2010/12/13/whats-behind-all-the-bonuses-when-you-buy-gift-cards/ What’s Behind All the Bonuses When You Buy Gift Cards? – It's Your Money – TIME.com

[...] the consumer. And it happens pretty regularly: According to one study from not that long ago, some $6.8 billion worth of gift cards goes unused annually. In another survey, 27% of Americans said they still had gift cards they'd [...]
http://money.blogs.time.com/2010/12/21/getting-more-gift-out-of-gift-cards/ Getting More Gift Out of Gift Cards – It's Your Money – TIME.com

[...] problem is that consumers who are aware that billions of dollars worth of gift cards go unused regularly may be inclined to use them asap—because even if the value is spent in foolish ways, [...]
http://billmullins.wordpress.com/2010/12/22/tech-thoughts-daily-net-news-december-22-2010/ Tech Thoughts Daily Net News – December 22, 2010 | Bill Mullins' Weblog – Tech Thoughts

[...] A Reminder That Many Gift Cards Go Unused – States are supposed to track down the card owners and get them their money back, but often that’s impossible. Many gift cards are purchased with cash and are totally untraceable. If that’s the situation, the state generally collects the money. New York, for instance, collected $9.6 million in unused gift cards in 2008. And that’s just the tip of the iceberg: About $65 billion is spent on gift cards in the U.S. Annually, and $6.8 billion of that is never redeemed. (submitted by Dar) [...]
http://money.blogs.time.com/2010/12/23/how-much-is-a-gift-really-worth-not-as-much-as-you-pay-for-it/ How Much Is a Gift Really Worth? Not As Much As You Pay for It – It's Your Money – TIME.com

[...] gift cards encourage foolish spending—that is, if they're used at all ($2.5 billion is wasted annually)—they too are often worth much less to the recipient than the [...]
http://dixiedownturn.com/2011/01/recycle-your-crappy-gift-cards-at-grimeys/ Recycle Your Crappy Gift Cards at Grimey’s – Dixie Downturn

[...] So, there you have it. Don’t be trying to use Great Escape gift cards at Grimey’s and if you’ve still got a card for Tower Records, you’re just going to have to let that dream die. Don’t let the government claim your crappy gift cards as abandoned property! [...]
http://thinkoutsidethebin.com/2011/02/24/turn-unwanted-gift-cards-into-cash/ Turn unwanted gift cards into cash | Think Outside The Bin

[...] cards are fun to give and receive…but often go unused. According to Time Magazine’s blog, about $65 Billion is spent on gift cards in the U.S. annually, and $6.8 Billion is never [...]
http://www.threethriftyguys.com/2011/05/why-you-should-never-pay-full-price-for-gift-cards/ Why you should never pay full price for gift cards | Three Thrifty Guys

[...] is but over $65 billion is spent annually on gift cards – in the U.S. alone. Of that, nearly 7 billion goes [...]