WASHINGTON—A new study shows 50% of U.S. adults currently have unused gift cards or store credits. This equates to an average of $167 per person in unredeemed funds, the Bankrate study reveals.
One-in-four adults have let a gift card expire in the past, and 22% have lost a gift card. Over half (57%) of respondents said they have held onto a card for over a year, LowCards.com stated in its analysis.
Over one-third of unused gift cards and credits are less than $50. However, 22% of respondents had unredeemed funds between $50 and $99. Twenty-one percent had unused funds valued between $100 and $199, and 14% had credits between $200 and $499. The remaining 5% had $500 or more in unused funds.
A ‘Large Impact’
Income had a large impact on the value of unredeemed gift cards and store credits. Respondents with an annual income over $80,000 had an average of $297 in available funds, compared to $93 for incomes under $40,000.
Earlier this year, Mercator Advisory Group reported that consumers spent $98.6 billion on gift cards in 2019, and on average, 1%-3% of gift cards are not fully used. Retailers are getting paid up to $2.95 billion worth of gift cards that consumers aren’t cashing in, LowCards.com said.