Where’s that gift card? That’s the question many are asking, according to a study that estimates consumers lost $5 billion in misplaced or unused gift cards.
The ABA Education Foundation warns people to “Use it or Lose it” among its tips for the wise use of gift cards. “Gift cards are on the top of everyone’s list — to give and receive — with Americans spending $87 billion on them,” explained Laura Fisher, ABA Education Foundation director. “Gift cards make great gifts but consumers should make sure they understand the terms for a rewarding gift exchange experience.”
When buying gift cards, the ABA Education Foundation recommends:
Only buying gift cards from reputable sources
Checking for an expiration date before you buy
Considering practicality, such as a grocery store or gas station cards
Understanding the policies and fees before purchasing gift cards
For using gift cards, the Foundation advises:
Keeping them in a secure place to avoid misplacement
Spending them within the first year to receive the full value
Considering swapping unwanted cards
Re-gifting cards to charities who distribute them to the needy
The prepaid gift card provisions of the 2009 Credit Card Accountability Responsibility and Disclosure Act prohibits inactivity fees for the first year and within 12 months following activity on the card. According to the ABA, funds credited to gift cards remain for five years after they are added, even if the printed expiration date has passed.