What happens if gift card doesn’t work?

There can be several reasons why a gift card may not work when you try to use it. Here are some of the most common issues and what to do if your gift card is not accepted:

The gift card has expired

Gift cards and store credit usually have an expiration date printed on them. This is the date when the card becomes invalid and can no longer be used. The expiration timeframe can vary – some gift cards are valid for up to 2 years after purchase, while others may expire in just 6-12 months. If your gift card has passed its printed expiration date, unfortunately it can no longer be used.

What to do if your gift card has expired

If your gift card has expired, there may still be hope of getting some value from the card. Here are a few things you can try:

• Contact the merchant: Many major retailers have policies in place to allow shoppers to still redeem expired cards, often by providing a replacement or offering store credit. Call or email the merchant’s customer service department to ask.
• Visit the store: Take your expired gift card to the retailer’s physical location and speak to a manager. They may be able to make an exception and allow you to use the expired card, or replace it with a new card.
• Sell it online: List your expired gift card on sites like eBay, Craigslist or CardCash. You likely won’t get the full value, but can recoup some of the card’s remaining balance by selling to buyers who may still be able to use it.

There are insufficient funds on the gift card

If you try to buy an item for more than the available balance on your gift card, the transaction will be declined. Before using a gift card, always check the remaining funds by calling the 1-800 number or visiting the merchant’s website listed on the back of the card. Many retailers also allow you to check balances in store at the cash register. Know how much is left so you don’t run into issues at checkout.

What to do if your gift card balance is too low

If there’s not enough left on your card to cover the full purchase amount, you have two options:

• Pay the difference: Use whatever funds are left on the gift card, then cover the remainder of the transaction with another payment method like cash, credit card or a second gift card.
• Put the item on hold: Ask the retailer if they can hold the merchandise at customer service until you can come back and purchase it with a different form of payment. Some stores will allow this for 24-48 hours.

The magnetic strip or barcode is damaged

With regular wear and tear, the magnetic stripe on the back of a physical gift card can become scratched. The barcode may become frayed or damaged as well. This can prevent the card from being scanned or read properly by the point of sale terminal.

What to do if your gift card is damaged

If your gift card appears to be too damaged to work, ask the retailer if they can still process the transaction manually by entering the card’s ID or code into their system. If the associate cannot get the damaged card to work, ask if the remaining balance can be transferred to a new gift card on the spot.

The gift card number is entered incorrectly

Whether shopping online or in stores, make sure you carefully type or relay the long string of numbers that makes up the gift card account. Entering just one of the digits incorrectly can make the whole number invalid. Double check the number for accuracy if your card is not being accepted.

What to do if you entered the gift card number wrong

• Online shopping: If entering the number on a website, go back and re-type the gift card number carefully. Copy and paste the number directly from the gift card if possible to avoid mistakes.
• In-store: Have the cashier double check the gift card number either by scanning it again from the physical card, or by entering the number manually again. Have them verify it digit-by-digit.

The gift card has already been redeemed

Some dishonest shoppers will record or copy down gift card numbers in the store to redeem them online and drain the funds before the intended recipient can use the card. If you try to use your gift card shortly after purchasing it and find that the balance is $0, unfortunately it means someone has likely already spent the money on it.

What to do if your gift card has been redeemed

If you believe the gift card you purchased was used by someone else before you could redeem it, go back to the store immediately with your receipt. Ask them to verify the purchase date and if the funds were already spent. Most major retailers have fraud prevention policies in place to assist customers who purchased cards that were improperly drained by others.

The retailer does not accept gift cards

While you can use gift cards at most major chain stores, some smaller local retailers, vendors at farmer’s markets, roadside pop-up shops or restaurants may not have the capability of processing and redeeming gift cards – especially if the seller is cash-only. Before purchasing a gift card, verify that the merchant advertises that they accept their own cards or major third-party gift cards like Visa or Mastercard.

What to do if a retailer won’t accept gift cards

If you present a gift card and the seller informs you that they do not redeem them, here are your options:

• Pay another way: Use cash, credit card or mobile payment for your purchase if you still wish to buy from the same retailer.
• Exchange it: Ask the seller if they can issue a refund on the gift card so that you can exchange it for cash. Some small vendors may do this as a courtesy if you explain that you were unaware they did not take gift cards.
• Re-gift it: Hold onto the card and give it to someone else who may be able to use it at a retailer that does accept gift cards.

The gift card was purchased from a third party

Gift cards purchased from unauthorized third party resellers may sometimes prove to be fraudulent or unusable. Only buy gift cards directly from the merchant or from reputable retailers like grocery stores to avoid ending up with invalid cards.

What to do if your third party gift card doesn’t work

If you bought a gift card from a source other than the issuing merchant and find that it does not work, here are your options for recourse:

• Contact the reseller: Notify the website or individual you purchased it from that the card is not valid and ask if they will refund your money back.
• Research the retailer: Check if the place you bought the third party card from has a positive reputation and verified customer reviews. Make sure they are authorized resellers.
• Consult your credit card: If you purchased the invalid gift card using a credit card, you can request a chargeback from the credit card company to dispute the charges.
• Report fraud: Notify the FTC if you believe the third party gift card provider knowingly resold fraudulent cards in a scam. File a complaint at ReportFraud.ftc.gov.

The gift card was lost or stolen

If your physical gift card goes missing before you can redeem it, it leaves the door open for anyone who finds the card to spend the balance. Gift cards should be treated like cash – if lost or stolen, anyone can use them.

What to do if your gift card is lost/stolen

Here are some tips on what to do if your gift card is lost or stolen before you could use it:

• Act quickly – Notify the retailer immediately that your card is missing so they can put a freeze on the balance and render it temporarily unusable.
• Check the balance – See if any funds have been spent off the card since you lost possession of it.
• Request a refund – Ask the merchant if they can void the lost or stolen gift card and issue a refund for the remaining balance.
• Replace the card – Some retailers will let you pay a small fee to have the balance transferred to a new gift card.
• File a police report – For valuable cards, file a report on the lost or stolen item in case the information is needed later for fraud claims.

The gift card was purchased in a different country

When buying a gift card, make sure it is valid for use specifically in the country where you plan to redeem it. Many retailers sell region-specific gift cards that can only be used in the country they were purchased in.

What to do if your gift card is from a different country

If you end up with a gift card valid only in a foreign country, here are some steps you can take to get some value from the card:

• Online shopping – Try using the card on the merchant’s website for the specific country. E.g. use a European gift card on the retailer’s Spanish or German site.
• Sell it – List the foreign gift card for sale to international buyers who can redeem it in the appropriate country.
• Swap it – Exchange the international gift card for a valid local one by using swap sites like CardSwap or GiftCardExchange.
• Trade it in – Some retailers with global presence may allow you to trade in a foreign card for one that works where you are located.

Conclusion

Having a gift card decline or not work can be frustrating and disappointing. But in many cases, the issues can be fixed by confirming the card’s expiration date, checking the balance, getting a damaged card replaced or making sure you entered the number correctly. Always buy gift cards directly from retailers and reach out to customer service if your card is not being accepted so you can get assistance redeeming the remaining funds.