Report: Nearly $23 billion in gift card balances goes unspent annually
MINNEAPOLIS — This last holiday season, Americans spent billions on gift cards.
Whether you're gifting or getting, they are a popular prize.
"We see over and over every holiday season, gift cards is a top-tier gift," said Bruce Nustad, president of the Minnesota Retail Association.
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As long as you remember to use them.
"You either put them in your wallet and forget about them or you put them in like your drawer or desk and then they get totally forgotten about," said Minneapolis resident Mark Sarles.
Data from Bankrate shows nearly half of U.S. adults have at least one unspent gift card or voucher with an average value of $187.
It adds up to nearly $23 billion of unspent funds.
Luckily, they don't expire in Minnesota.
"Generally in Minnesota, a store-based gift card isn't going to have an expiration date or a declining balance," Nustad said. "So it's kind of a popular gift from that perspective, it will never lose its value."
Nustad says that differs from federal laws, and cash cards like Visa or Mastercard could accrue inactivity fees. But it could explain the trend of unused funds.
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"You don't have that big push, I've gotta spend this before it expires. So that's changed the dynamic," he said.
If gift cards just aren't your thing, there are websites like Raise, CardCash and GiftCash that allow you to sell the card and receive anywhere from 70% to 90% back in cash.
"It's an interesting phenomenon. It's a way for our consumer to kind of turn that gift card into cash, but it does come with some risks," Nustad said.
He says be on guard for gift card scams and report them to ReportFraud.ftc.gov.