PFT #91 - Personal Finance Tip of the Week: Gift Card Management

The United States culture tends to recognize many types of celebrations and this has created a common theme of replacing presents with gift cards. They are easy to purchase, simple to use and the beauty is that people can shop for what they want without having to wrap and return items.
Throughout the years gift cards can accumulate in wallets or desk drawers and many people are waiting to redeem them for a special occasion. According to USA Today, 47% of Americans have one unused gift card, voucher or store credit, and on average each person has $175 in unspent gift cards.

So the most common question that we receive is what happens to the cards if they go unused?

1. For starters a federal law 2010 says that a gift card can’t expire for five years from the time it was purchased or from the last time someone added money to it. In some states, the expiration period is longer.
   
   
2. With generic cash cards such as MasterCard or Visa, they begin to incur
   inactivity fees after one year, which eats away at their value.

3. There is an option to sell cards on websites that typically give you 70 to
80 cents per dollar.

4. Depending on what state you live in, they may have unclaimed property
programs for unused cards. The thought is that issuing card companies
haven't provided a service to earn the money, so they don’t get to keep it.
So chalk up a win for the little guy.

5. If you have long-term unused cards and want to claim them, then you can
search for unclaimed property in the state that the card was issued to
see if you have money coming to you.

6. Additionally, you should periodically look on your state’s website to see what else may be
coming to you which is known as escheating. From there, just follow the steps to reclaim
your money. So to wrap things up, gift cards do not need to be wrapped; however, they can
be lost, misplaced or lose their value. The best way to manage this is to keep them
organized and simply use them.

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Episode Transcript

(00:00):
Booth speople boo boost. Hello everyone, I am David and you were listening
to the Personal Finance Tip of theWeek, and this week's topic is on
gift card management. The United Statesculture tends to recognize many types of celebrations

(00:23):
and this has created a common themeof replacing presence with gifts. They are
easy to purchase and simple to use, and the beauty is that people can
shop for anything they want without havingto wrap and return items. Throughout the
years, gift cards can accumulate inwallets or desk drawers, and many people
are waiting to redeem them for aspecial occasion. According to USA Today,

(00:48):
forty seven percent of Americans have oneunused gift card, voucher or store credit,
and on average, each person hasone hundred and seventy five dollars in
unspent gift cards. So the mostcommon question that we receive is what happens
to the cards if they go unused? Number one. A federal law in
twenty ten says that gift cards canexpire for five years from the time that

(01:12):
it was purchased or from the lasttime someone added money to it, and
in some states the expiration period islonger. Number two. Keep in mind
with generic cash cards such as MasterCardor Visa, they begin to incur inactivity
fees after one year, which eatsaway at their value. Number three.

(01:34):
There is an option to sell cardson websites that typically give you seventy to
eighty cents on the dollar. Numberfour. Depending on which state you live
in, there may be unclaimed propertyprograms for unused cards. The thought is
that issuing card companies haven't provided aservice to earn the money, so they
don't get to keep it. Soin this case, we will chalk one

(01:56):
up for the little guy. Numberfive. You have a long term unused
card and want to claim it,then you can search for unclaimed property in
the state that the card was issuedin to see if you have money coming
to you. And as a sidenote, you should periodically look on your
state's website to see if there's anyother unclaimed property coming to you. This

(02:17):
is known as a sheeting. Fromthere, just follow the steps to reclaim
your money. Okay, so let'swrap things up. Gift cards do not
need to be wrapped. However,they can be lost, misplaced, or
lose their value. The best wayto manage this is to keep them organized
and simply use them. So thatwill do it for the personal finance tip

(02:38):
of the week. Until next time, I am David