Gift cards have become a popular gift-giving option in recent years. According to the National Retail Federation, gift card sales reached $130 billion in the United States in 2017. With so many gift cards being purchased, some recipients inevitably end up with cards they don’t want, can’t use, or forget about. This raises the question – can you get a refund on an unwanted gift card?
The store’s refund policy
Whether you can get a refund on a gift card depends largely on the policy of the store that issued the card. Many major retailers haveimplemented no-refund policies for gift cards. This means once the card is purchased, you cannot exchange it for cash back. Examples of stores with no-refund policies for gift cards include Walmart, Target, Amazon, Starbucks, and The Home Depot.
There are some exceptions, however. Some states have laws requiring stores to provide cash back for gift cards under certain circumstances. And some retailers allow refunds on gift cards if you have the original purchase receipt or the card has not been used yet. Policies can also vary by state, so it’s a good idea to check your local consumer protection laws regarding gift cards.
Options for using unwanted gift cards
If the original retailer does not allow gift card refunds, you still have several options for putting an unwanted gift card to use:
- Regifting – Give the card to someone else for their birthday, holiday, or other occasion.
- Reselling – Sell the card online via sites like CardCash, Cardpool, or Raise.
- Exchange – Swap the card for one you want more via an exchange site like CardSwap.
- Using the card – Try to use the card yourself for a purchase, even if it’s not your preferred retailer.
- Partial refund – Some stores allow partial refunds for the remaining balance if you make a purchase.
Factors that determine refund eligibility
There are a few key factors that determine whether you can get a refund on a gift card:
- Store policy – As mentioned, the retailer’s posted policy is usually the deciding factor for gift card refunds.
- State laws – Some states prohibit gift card expiration dates and fees, which can improve chances of a refund.
- Receipt – Having the original gift card purchase receipt greatly improves your odds of getting a refund.
- Card usage – Unused gift cards have the best chance of refund approval.
- Time limits – Stores often place time restrictions, such as within 30 or 60 days of purchase.
Always be sure to read the fine print on gift card packaging or retailer websites to understand their specific rules before trying to request a refund.
Refund request tips
If the store does allow gift card refunds under certain conditions, here are some tips for successfully getting your money back:
- Act quickly – Request the refund within the allowed time limit.
- Prepare documentation – Have the original purchase receipt and unactivated gift card ready.
- Check remaining balance – Know exactly how much is left on the card to be refunded.
- Ask politely – A kind attitude goes a long way with customer service reps.
- Follow up – If denied, escalate politely and cite the refund policy.
- Sell instead – If refund is still denied, opt to resell the card to recover value.
Top retailers that allow gift card refunds
While most major retailers have a no refund policy for gift cards, there are some exceptions. Here are some of the top stores that allow gift card refunds under certain conditions:
| Retailer | Refund Policy |
|---|---|
| Apple | Unactivated cards eligible for refund with receipt within 30 days |
| Lowe’s | Unactivated cards eligible for refund with receipt within 90 days |
| Nordstrom | Refunds given with receipt within 30 days |
| REI | Unused cards can be returned anytime |
| L.L. Bean | Lifetime guarantee – unused cards can be returned anytime |
State gift card refund laws
Some states have enacted gift card laws that require retailers to provide cash refunds in certain situations. Here are a few examples:
- California – Unused cards can be redeemed for cash if less than $10 remains.
- Colorado – Cards cannot expire and unused cards can be redeemed for cash.
- Maine – Gift card cash refunds required for any amount if requested.
- New Jersey – Cash refunds mandated for unused cards if merchant goes bankrupt.
- Washington D.C. – Cash refunds required for any unused portions on gift cards.
Be sure to research the laws in your state to understand your rights as a gift card consumer.
Purchasing gift card refund insurance
Some companies offer gift card refund insurance plans that allow you to insure the full value of gift cards purchased. If the recipient can’t use the card, you can file a claim and recover the remaining funds. Companies offering gift card insurance include:
- Safecard
- Cardrefunds
- Giftcardgranny
- Giftcardrescue
Plans vary, but premiums generally range from 2% to 7% of the gift card’s value. Policies have terms and conditions, so read the details carefully when purchasing gift card insurance.
Alternatives to gift card refunds
If you are unable to get a refund for an unwanted gift card, here are some alternate ways to recover some of the card’s value:
- Regift the card – Give to someone else who may be able to use it.
- Exchange for a different card – Swap out the card for one at a preferred retailer.
- Resell the card – Sell to an online gift card reseller to recoup a portion of the balance.
- Donate the card – Donate to a charity that can make use of it.
- Use the card yourself – Spend the card balance on yourself if allowed by the policies.
Steps to request a gift card refund
If the original card retailer does allow refunds, follow this standard process to request your money back:
- Carefully review the gift card packaging and retailer website for the refund policy details. Make sure you meet any eligibility conditions.
- Contact customer service by phone, online, or in person to ask about a refund on an unwanted gift card. Explain why you are seeking a refund.
- Provide documentation such as the original purchase receipt or unactivated gift card, as required.
- Clearly state how much money remains on the card that you are seeking to be refunded.
- Get documentation of the refund approval if successful and confirm processing timelines.
- If denied, ask for reasoning and determine if you can escalate the request or cite state consumer laws.
- Be polite throughout the process – yelling or anger will not help your case!
Can I get a refund on a virtual gift card?
Virtual gift cards redeemed online come with their own separate policies. However, the ability to get a refund on virtual gift cards follows the same general criteria:
- Check the gift card retailer’s policy for eligibility requirements.
- Make sure the card code has not already been redeemed.
- Request the refund within the specified time limit, such as 60 or 90 days.
- Provide the virtual card code, claim code, and original purchase receipt.
- Reps may be able to refund the purchase cost to the original payment method.
As with physical gift cards, most major retailers also prohibit refunds on virtual gift cards. But it is still worth checking the policy for the retailer in question.
Should I purchase a non-refundable gift card?
Here are some pros and cons to consider when purchasing a non-refundable gift card:
Pros of non-refundable gift cards:
- May come with higher value discounts or bonus offers.
- Never expires, so adds convenience for recipient.
- Provides guaranteed business for the retailer.
- Allows gift giver to easily stick to a set gift budget.
Cons of non-refundable gift cards:
- Recipient loses flexibility if they cannot use card.
- Harder for gift giver to recover any value if unwanted.
- Refunds not allowed even if business closes.
- May violate some state consumer laws on gift cards.
The convenience and bonus perks can outweigh the downsides in many cases. But be sure to consider the recipient’s preferences carefully when buying a non-refundable card.
Conclusion
The majority of retailers do not offer gift card refunds as standard policy. However, some make exceptions for unused cards returned shortly after purchase. Be sure to save your receipt and review refund policies closely. If a refund is not possible, look into reselling, regifting, donating or exchanging the card. With a little creativity, you can find ways to get value from an unwanted gift card even without a refund. Just be sure to make note of refund policies and consider gift card insurance to protect yourself when giving gift cards in the future.