Unused Gift Cards is a real thing, although not so much a problem. At one of the places I work, we are about to introduce gift cards, and from a business standpoint they are awesome.
Anyone who has a business that could use gift cards should offer them. On average, gift cards will leave anywhere from 10% to 30% of the original total unused (depending on products the card can purchase and the total cost of the card).
These companies that are trying to solve the 'problem' (they are definitely not a problem if you are the one selling them) of unused gift cards may run into problems of their own. Read the back of most gift cards and you find that just like concert tickets, they are non-transferable, non salable, and have no cash value. While it would be incredible difficult to prove a certain gift card was transfered or sold, upset card sellers may be able to go after the companies facilitating the selling (pure speculation).
Personally, I don't think that unused card trading companies will take away much of the profitability of gift cards, but it also may make consumers feel more comfortable buying gift cards.
Either way, unused gift cards are very real, and if you can, you should look into selling them.
You clearly don't have anyone who insists on giving you, for example, $20 gift cards to Crate and Barrel: the gift that actually costs you money. You want to be able to tell them what you spent it on (to be nice), but there's nothing at Crate and Barrel that you can buy for $20.
Some stores calculate the the value of gift cards very carefully to be below or above the mean/mode (depending on stores and price distribution) to ensure that either money is left on the card, or more money must be spent to make the purchase.
As a consumer, gift cards are never a very good idea.
Even worse is, last year I got married and we had a registry at Crate and Barrel. Several people ended up giving us... Crate and Barrel gift cards. Apparently because Crate and Barrel always adds gift cards to your registry no matter what you do. Of course by now we already have everything at Crate and Barrel that we could possibly want....
You're lucky :). Not everyone will have unused gift cards, but you still benefit from being able to buy them at a discount. E.g. you get 30% off at 1-800-Flowers.com, 12% off Gap, 10% off iTunes, etc, stackable with any other coupons or promotions you can find. If supply meets demand, we're happy!
I don't think it is. I always just re-gift (or simply give away) my unwanted gift cards. I think the bigger problem is people simply forget they even got them to begin with... and they become hidden in their wallet or drawer. The big box stores love this because the gift cards are already an interest-free loan...but this way they are just free money plain and simple. So the idea that these startups are going to work with these stores in someway to "solve" this problem seems unlikely.
Wait, so you "give away" gift cards that you won't use while this site gives you the ability to sell those gift cards which means money in your pocket and you don't think they're solving a valid problem?
> they become hidden in their wallet or drawer. The big box stores love this because the gift cards are already an interest-free loan
Gift cards are often better than an interest-free loan.
In some/many states (not CA), the issuer can impose "inactivity" charges. Yup - while it's sitting in your drawer, they get to bleed the card's value down to $0.
I don't have unused gift cards but I do have gift cards with remnants on them. I'll buy a larger item and have 1-3$ left on the card which typically isn't enough to buy anything. I'll forget how much is on it and then never end up using it again...
I received a gift card to Macy's for $25 over Christmas and we haven't used it. It was for my daughter and I don't like the clothes they have there and at that price they don't have much I want in any other department so it sits in my wife's purse. I wouldn't sell it because it came from my daughter's Great Aunt and she loves my daughter and intended it for her benefit. I'm just hoping Macy's gets something for girls that isn't covered in pink so I can buy it.
I think this is a pretty common story especially if kids are involved.
I've had the problem. This past Christmas my extended family did a white elephant/yankee swap/nasty christmas thing. I wound up with a Starbucks gift card b/c it was the most valuable gift available compared to the other items like a mini deep fryer, portable CD player (gotta love older relatives for being with the times), or a set of decorated measuring spoons.
I, however, do not drink coffee. After being introduced to Cardpool through YC, my problem was solved. Money in my pocket. :-)
Yes, it's an actual problem. One time for a birthday I got 3 Best Buy cards and 1 Circuit City card. It would have been nice to swap out the CC card for a BB card and do all the shopping at one place.
Also (and this is a bit more abstract), I buy myself iTunes gift cards in $20 chunks so that I don't just bleed away $0.99 at a time by buying music straight through my credit card. If I can get iTunes cards at a discount from a site like this, it's a win for me.
I generally try to spend the full value of the card at once otherwise I end up with cards with random amounts, lose track, and eventually forget about them.
The ultimate solution to this problem is getting rid of gift cards altogether. Just give cash. People complain that giving money is not thoughtful. Like going to the nearest CVS and paying $105.95 for $100 American Express card any more thoughtful.
Gift cards only give the illusion of being thoughtful. I'm not sure why people are offended when receiving cash. There's really no up side compared to cash. It's less convenient for both the giver and receiver.
I guess it's a cultural thing (I'm Asian). I've always received cash from my parents and relatives and love it. I can spend any where, any amount, or not at all if I want to save it.
I think there is also the point of trying to restrict what the card receiver can buy. Most people when giving a gift card do it so hopefully the person buys something that is a gift like a dvd rather than food/rent/alcohol ect
Yeah, which is fucking stupid. If you don't have the relationship to know what the person actually wants or needs, why bother with giving them something that's kind of like cash, but can't actually be used to pay for what they want or need?
In California, where I live, gift cards do not expirs, and are redeemable for cash if the amount left on the card is $10.00 or less. I got a blockbuster gift card one time, went to blockbuster, asked for two $10.00 cards and one $5.00 card. The next day I went in and cashed all the cards in. Maybe a bit of work, but since I will never use them, it was worth it for the cash in my pocket.
wow, why didn't someone come up with this idea sooner?
i had a linens n things gift card that i hung on to for about a year bc i couldn't use it. then they went bankrupt and...well, then i just had a card, and no gift.
I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it.
Yet somehow, there are five funded companies in this space?!