Gift cards have become a popular gift item over the past couple of decades. According to the National Retail Federation’s annual survey, gift cards were again the most requested gift item of the 2021 holiday season. Consumers are expected to spend over $28 billion on gift cards this year alone.
Gift cards provide a simple way for gift givers to give recipients the flexibility to purchase exactly what they want. Many retailers and restaurants now offer gift cards that can be used at any of their locations. Gift cards have also gone digital, with virtual gift cards available to be sent instantly online or via mobile apps.
For gift card recipients, using a gift card is meant to be easy and convenient. However, if you’ve never used a gift card before, the process may seem confusing. Here is a comprehensive guide on how to use a gift card, from activation to getting any remaining balance back.
Activating Your Gift Card
Many physical gift cards need to be activated before their funds can be used. The activation process links the card’s number to an active balance. It usually only takes a few minutes.
There are a couple ways to activate a gift card:
- At the retailer’s website – Most major retailers allow you to activate gift cards online. Just look for a “Gift Card” link at the bottom of the website. You’ll need to enter the card number and other details.
- Over the phone – Every gift card has a toll-free number on the back you can call for activation. You’ll need the card number and PIN code if provided.
- At the store – Take the physical gift card to the retailer location and ask a sales associate to activate it for you.
Once activated, your gift card funds are loaded and ready to use. Be sure to sign the back of a physical card, as some stores will ask to verify signatures for purchases.
Check the Balance
Before using your gift card funds, it’s a good idea to check the balance. Your gift card starts with the amount gifted to you, but decreases with each purchase you make. Many gift cards also have expiration dates and fees that can impact the funds left.
To check a gift card balance:
- Look on the gift card – Most physical gift cards have the balance printed on the back. Just make sure it reflects any purchases already made.
- Go online – You can log in and view updated balances for any gift cards registered to your account.
- Call the toll-free number – Speaking with customer service allows you to check on the exact current balance.
- Ask in-store – Have a sales associate scan the bar code to pull up the balance at checkout.
Knowing how much is left on a gift card helps prevent trying to spend more than the available funds. Keep track of balances as you use a gift card to ensure you maximize the value.
Use It For Purchases
The most straightforward way to use a gift card is making purchases at the designated retailer. Gift cards function similarly to cash or debit cards. Simply present the gift card anytime you would normally pay for a store or restaurant transaction.
Here are some tips for seamlessly using gift cards for purchases:
- Present early – Let the cashier know upfront you’ll be using a gift card to pay so it’s accounted for.
- Swipe or scan – Physical gift cards may need to be swiped at checkout. Some stores can scan a barcode on the card.
- Enter the number – For online or phone purchases, relay the card number and PIN when prompted.
- Save the receipt – Keep the gift card receipt to reconcile the new balance later.
- Use once – Gift cards are usually applied in full instead of remaining open for future purchases.
You can generally use a gift card the same ways you would regular payment methods at a retailer. This includes in-store, online, phone orders, etc.
Split Payment
If your purchase total exceeds your gift card’s balance, you can often split the payment between multiple forms. Just tell the cashier which amount to apply to the gift card, and cover the remainder with another payment.
For example, if the gift card has a $25 balance left but your purchases are $40, have $25 charged to the gift card and the remaining $15 on your credit card. Split payment allows you to maximize the value of gift cards fully.
Returns & Exchanges
If you need to return or exchange an item paid for with a gift card, most retailers will credit the refund back to the same gift card. Some may ask if you prefer the refund as a new gift card or as store credit instead.
Make sure to bring the activated gift card along for a return or exchange to have the balance reconciled accurately.
Check the Expiration
While 46 states prohibit gift cards from expiring for at least 5 years, it’s still important to be aware of any expiration dates. The expiration is usually printed on the card or available online or from customer service. For physical cards, make note of the expiration before throwing out the packaging.
In most cases, you will need to use the gift card funds prior to expiration. Some issuers may allow you to request an extension if you contact them before the printed date. But if a gift card expires unused, in most cases those funds are forfeited.
To avoid losing gift card amounts to expiration, try to use the card sooner rather than saving it. If needed, note the expiration date on your calendar to remember to use it in time.
Monthly Fees
Besides expiring, some gift cards also carry monthly fees that gradually diminish the balance. These are technically illegal under the federal CARD Act, but certain types of cards are exempt.
Monthly fees on gift cards often run from $2-5. To avoid fees eating away at the funds, try to use gift cards quickly after receiving them. And if you need to keep a card long term, call the issuer to see if the fees can be waived.
Use Gift Card Exchange & Resale
If you have a gift card you don’t expect to use, there are ways to exchange it or resell it rather than letting it go to waste:
- Swap at a gift card exchange – Online exchanges like Cardpool, Raise, and Gift Card Granny let you trade in an unwanted gift card and receive money for the balance or swap it for a more preferred card.
- Resell on a gift card marketplace – Sites like CardCash allow you to sell your gift card balance and receive cash payment via PayPal, check, etc.
- Regift it – Pass along an unused gift card to a friend or family member who would use it instead of you.
- Donate to charity – Many non-profits accept gift card donations as useful contributions.
Exchanging or reselling lets you clear out gift cards taking up space in your wallet or drawer. You can often recoup a majority of the unused balance in the process.
Watch for Fees
When utilizing a gift card exchange or marketplace, pay attention to any fees disclosed. Most will charge a percentage, such as 15%, as their cut of the balance. Also factor in additional shipping costs if required.
Get a Balance Refund
If you have a gift card that has expired or you never expect to use, you may be able to request a refund of the remaining balance. Requirements vary based on different state laws.
In some states, like California, Delaware, and Washington, retailers are required to provide cash refunds for gift card balances under $10. Other states prohibit refunds or only allow in-store credit rather than cash.
To request a gift card balance refund:
- Check online – Some retailers provide forms on their websites to submit refund requests.
- Call customer service – Discuss getting a refund of the balance over the phone if allowed.
- Visit a store – Talk to a manager at a retail location about refund policy exceptions.
Be aware refunds may take 1-2 billing cycles to process depending on the company. Also recognize that retailers ultimately have discretion over whether to honor balance refunds.
Proof of Purchase
To obtain a gift card balance refund, you will typically need to provide the original receipt or proof of purchase. Retailers need evidence that you purchased or received the gift card legally.
So when you receive a gift card, be sure to keep the receipt or gift documentation. Take a photo or make a copy of the necessary activation information as well.
Refund Limitations
If allowed, gift card refunds are usually restricted to balances under $10. Anything higher and the retailer will point you to their official expiration policy. Consider exhausting all options to use the card before seeking a refund.
Additionally, most retailers prohibit refunds on promotional or discounted gift cards purchased below face value. Only cards bought at full price may qualify for balance returns.
Reduce Fees & Get Rewards
To maximize your gift card usage, take advantage of opportunities to save on fees and even earn rewards:
- Avoid purchase fees – Look for no-fee general purpose gift cards from vendors like Visa or Mastercard.
- Leverage promotions – Sign up for retailer emails to receive discounts and bonus offers for gift card holders.
- Enroll in loyalty programs – Many store programs provide perks and free shipping for gift card users.
- Use cards with rewards – Select gift cards that come with loyalty points to redeem for future savings.
- Get cash back – Shop through cash back portals when purchasing gift cards to offset fees.
With the right techniques, you can end up spending less and earning more while maximizing your gift card funds. Just be aware of any terms and conditions related to special offers.
Watch for Fees & Restrictions
Despite promotional messaging, be on the lookout for fees that may still apply and reduce your savings. Also keep an eye out for gift card use restrictions when it comes to loyalty programs, discounts, and cash back opportunities.
Security & Protection
Like regular payment cards, it’s important to treat gift cards securely to prevent loss or theft. Consider these tips to keep gift cards protected:
- Register it – Record the card number online so balances can be recovered if lost.
- Check the policies – Know the retailer procedures for refunding stolen gift cards.
- Store securely – Keep physical gift cards in a safe place like a locked drawer.
- Avoid public computers – Don’t access or manage gift cards on shared devices.
- Watch the balance – Monitor the balance for unauthorized transactions indicating fraud.
Also be aware when buying gift cards to only purchase from reputable retailers and websites. Avoid gift cards sold at significant discounts, which increases fraud risk.
Report Issues
If your gift card does get lost, stolen, or compromised, act quickly to report the issue:
- Call customer service immediately after noticing any problems to flag the gift card.
- File a claim by submitting documentation per company procedures.
- Change account passwords if the gift card was linked to an online account.
The sooner you can report gift card security issues, the more likely you are to recover any lost funds.
Frequently Asked Questions
Here are answers to some commonly asked questions about gift cards:
Can gift cards expire?
Yes, most gift cards are issued with set expiration dates, generally 2-5 years after purchase. Some states require 5+ year expirations. Always check your card to see the printed expiration date.
Can I get gift card cash back?
In most cases retailers do not provide cash back for remaining gift card balances. Some states require cash refunds for balances under $10, but general practice is to not offer cash redemptions.
Are gift card exchanges legit?
Yes, reputable third-party gift card exchanges like Cardpool and Raise are legitimate businesses. Make sure to compare companies and read reviews before using a gift card exchange site.
Do gift cards work internationally?
Retailer gift cards only work in countries where that brand operates stores. Visa or Mastercard gift cards can potentially work internationally if they don’t have country restrictions.
Where’s the gift card number?
The card number is printed on the back of physical gift cards. For egifts, check the email receipt or retailer website associated with the digital gift card.
Conclusion
Using a gift card makes the gifting process easier for both givers and receivers. A little knowledge about properly activating, checking balances, and redeeming gift cards helps ensure you use the funds completely and seamlessly.
Be sure to monitor expiration dates closely, research options for exchanging or selling unused balances, and employ security best practices. With a few simple processes, gift cards can be a convenient gift to receive, carry, and redeem at retailers and restaurants.
