How to Sell an Unwanted Gift Card
Gift cards are an almost incredibly huge industry. Americans spent $ 160 billion on them in 2018 alone , which means the aftermarket is both lucrative and huge, especially just after the biggest gift-giving holidays of the year. If you have a weird gift card that you want to sell or exchange, here’s what you need to know to get the most out of it.
Check your balance
Before you get too carried away with exchanges, you need to know how much your card is worth. However, do not enter your PIN on random balance check sites; Scammers love gift cards, which means there are many scam sites out there. Always visit the card manufacturer’s website or call the phone number on the back to check your balance accurately and securely. Of course, third-party gift card sellers check balances for you, but it’s good to know what you are working with, especially if the giver is a reputed giver .
Know the Law
In the United States, the legal definition of a “gift card,” and how they are sold and redeemed, depend on where you live. For example, California law prohibits card expiration, but the card issuer can charge an inactivity fee if they wish, as long as it is explicitly stated on the card itself. In Maryland, card issuers cannot enter expiration dates and / or service charges prior to at least four years; Massachusetts law allows expiration after seven years, but distinguishes between a fee for inaction (illegal) and a one-time fee for activation or cancellation (completely fine if explicitly stated). In some states, gift card issuers are legally required to exchange a card with a low balance (usually less than five dollars) for cash, but in most cases this is not the case. It’s complicated, that’s what I mean. Before you sell or trade anything, search for your state laws on the National Conference of State Legislatures website to know what not to do.
Weigh your options
Armed with your balance and a cursory understanding of the Law of Gift Cards, you can finally make an informed decision about what the hell to do with yours. Fortunately, the Internet makes it easy to swap an unwanted gift card for the one you actually use, or sell it for cold cash, but how much you can get depends on where and how you sell it.
The biggest disadvantage of selling gift cards is the drop in value. Third-party merchants such as CardPool , CardCash and Raise charge at least fifteen percent of the card balance from the top and then make further deductions based on the popularity of the card and the payment method you choose; if your state laws allow inaction or service charges, you could lose even more. Generally, however, the more popular the retailer (Walmart, Best Buy, and Target are the big three) and the slower the payout method, the higher your profit margins. By listing your card for sale on sites like CardPool or Raise and waiting for your check in the mail, you get more money than selling your card for transfer via PayPal or ACH on the same day.
While it can be tempting to compute numbers for each scenario, if you just want to benefit from a well-intentioned but poorly executed gift, the most important thing to consider is how much it costs you . If you’d rather have fifteen bucks in the bank than twenty in cash at Starbucks, sell them online and get the transfer. Unspent gift cards are literally useless, so don’t worry too much about the details – whatever makes you spend them will be the right choice.