People are becoming more familiar with the concept of gift card exchange, with most having heard some variation of the phrase. Experts who recognize this growing importance cite the immediate need to familiarize consumers with the logistics of this process. Gift card exchange is the process by which individuals convert their gift cards into cash or trade them for other cards. It is becoming increasingly easy for consumers with unwanted gift cards to dispose of them in this way. As a relatively new development, however, many individuals are not fully conversant with the concept. Many haven't even made a gift card purchase, much less attempted to exchange one. Because of this, there are many misconceptions surrounding gift cards - their purchase and their exchange. This guide will help to clarify the definition of "gift card exchange," its uses, how it works, and the benefits of its service.
Given the speed with which a gift card market has developed, and the relatively lucrative amount of money that can be made from the transactions, it is important to understand the practice that drives this market. Gift cards are generally purchased in order to make gifts to others rather than to oneself. Thus, any gift given by a person who may or may not know the recipient is inherently uncertain, as it runs the risk of not matching "recipient preferences." It is arguable that gift cards and cash are almost equally preferred by gift recipients for that reason. One feature of the gift card exchange market, then, is that it is a common practice for people to save their unwanted gift cards. That way, they can offer them for exchange or sale later. As part of the broader gift card industry, exchange is a useful tool. It has many enumerated benefits for consumers and is thus becoming more commonly used than alternative outlets, such as re-gifting and reselling a card.
What is Gift Card Exchange?
A gift card exchange is the process of giving the unwanted gift card to a leading, reputable company for cash or a different gift card. Both of these companies let you input the name of the merchant on your gift card and find out how much cash or alternate store credit you can get in return. If someone has handed you a gift card to a store at which you do not shop, or if your balance is so low that you will have to add your own money to use it, you may want to swap your gift card for cash. Instead of exchanging the cards, you can try to regift the gift card or donate the card to charity. There are many people who are looking to buy or trade gift cards. Many of them are willing to pay up to 90% of the remaining retail price for your unwanted gift card! Using this guide, find the website that will give you the most money for your gift cards. A gift card exchange is a technological utility that allows spenders to trade in their gift cards in exchange for cash, store credit, or a different gift card. Simply put, exchanging a gift card is not the same as using it. Most companies require you to send a gift card to them and then they will mail you back your choice of cash, a check, or a different gift card. Some companies offer the option to transfer some of the value of the gift card to your online account. Be aware that there is almost always a cost associated with using a gift card exchange service. Gift cards can be exchanged online or traded in person at a participating location.
History and Evolution
In 18th-century England, “trade cards” were small, colorful cards used as advertisements that would sometimes serve as tokens in barter systems. In the almost a century and a half since, barter has transformed into a system of gift card exchanges that continue to grow in scope and sophistication. The shift occurred at many points and levels, and not with any particular technology or fad, even as technology has played an important role in facilitating exchanges. New accounting firm services track and increase the value of businesses that begin with gift cards, and new businesses use statistical modeling to buy substantial quantities of cards before reselling them. In their essence, digital gift card exchanges still rely on the rules of trade cards, and new technologies, personal attitudes about money and gifts, and shifts in personal finance and the nature of money distinguish the contemporary exchange market. However, there are a few constants between these systems of cards and contemporary digital card exchanges.
While many aspects of money and finance are shifting, one of the more traditional forms of gifts is becoming more accepted. Since 2006, a consumer intentions and action survey has aimed in part to measure the potential popularity of gift cards as holiday presents. Over time, a more significant percentage of consumers reported that they would like these cards, growing from 53.6 percent in 2006 to 63.8 percent in 2013. Unlike the dour picture that some paint about the trade card full of vouchers, consumers described the cards with slightly more money than the cards that would “definitely be given,” rising from 16.3 percent in 2006 to 22 percent in 2013.
Benefits of Gift Card Exchange
Gift card exchanges offer lucrative and practical benefits. The most immediate appeal of a gift card exchange is the financial payoff. These programs right a financial “wrong,” providing you with cash for a product that you otherwise might never touch. Unused gift cards totaled $20.8 billion in 2021. This averages to about $80 in unspent gift card cash per person, with the potential for 60% savings being applied to other gifts, bills, or expenses. How that money can be used can matter just as much. Small wonder, then, that in the face of gift card disappointment, benefits experts look to the increasing number of gift card exchange programs to ensure that the spirit of their workplace gift-giving event isn’t dampened by receivers who don’t get what they want.
Unused gift card ability is rare. “Many consumers love to visit the restaurant or store that they received a gift card for and buy something nice for themselves,” she noted. No gifts exchanged. Avoiding duplicative notes of thanks. Emitting less potential waste. The right gift card exchange can serve as a way for employees in many organizations to minimize against the significant dissonance that financially formidable amounts of gift card purchases for the water cooler stocking or team potluck. Gift card exchanges can convey the caring warmth of employee selflessness, reduced to a workable line item on a digital tracking system, wherein those who don’t want what they’re given might turn their preference into a vase, a substantial four-figure purse, or a charity cash boost. They turn $1 into $100 in value. These benefits are increasingly symbols of a lesser-known, behind-the-scenes form of sustainable well-being in the workplace.
Financial Flexibility
We all swapped that unwanted gift card with a loved one for a little cash, a risky and awkward conversation. Now, there is a method that can let us switch any of our gift cards to cash, and it is the present. Exchanging unwanted gift cards does not only make our wallets flabbier, it also makes perfectly meaningful sense. Think of all the gift cards that we have had that were messed up rather than utilized in a drawer or anywhere else. All our money, disposed of. Exchanging gift cards has already been adopted by us, why not allow it to be?
The most obvious benefit of offering a gift card transaction is financial flexibility. The store loan holder or interchange purposes never appreciates full value. If we opt to transfer one of our gift cards into cash, we will pay up to 93-95% of the contrary value which the money may be available to me once our transaction is completed. We're doing well to recoup the money that would not have otherwise become open-ended and used if we agree to a rebate bonus in lieu of paper credit. It clarifies what the liquidity, or cash value, of one corporate gift card means, which means most of us are not waiting for our funds to be realizable and spend it in the name of a more meaningful gift. This is nice if we try to pay for something bigger, a more important purchase. In the future, it will apply to shorter-term methods. This is because when the expenditure is unexpected, the reward is particularly poignant. For instance, a gift card exchange will receive a preexisting discount amount authorization that is available.
Reduced Waste and Environmental Impact
It is also estimated that billions worth of plastic gift cards between the US, UK, and Canada go unused or expire annually. Many sellers of gift card exchanges aim to mitigate the environmental impact of waste generated by inactive gift cards, emphasizing reduced waste as a motivator for exchanging gift cards. Companies favoring "green dynamics" have the potential to cultivate a competitive advantage among consumers who regard "shop with soul" consumption as important. Gift cards are made of PVC and PET and have an estimated lifespan of one to three years, meaning that every current unredeemed card could eventually join the waste stream. The typical trajectory for PVC and PET gift cards involves at least a few meaningful steps along the way to becoming waste, such as material extraction and processing, production, transportation and distribution, and the physical card itself. A sustainable alternative to most of the options currently in use, gift card exchanges should be promoted. The idea of a "circular economy" is based on the efficient use of resources in production and consumption, as well as the elimination of waste from the manufacturing process. Gift card exchanges are one more way that any individual can work toward the sensibilities of a circular economy and promote collective environmental responsibility. To find ways to actively think about waste, one might consider turning a critical eye toward shopping and consumption habits. While it is counterintuitive for someone in debt to spend more money by shopping the gift card market, doing so can be and often is motivated by desires to "go green" and limit the waste created by plastic and manufactured goods. In other words, financial benefits and mainstream green consciousness have potential for harmonious alignment. They can form a symbiotic relationship that, when actively cultivated and utilized for intended purposes, can benefit individual spenders as well.
How Gift Card Exchange Works
There are two main categories of locations where you can fulfill the gift card exchange process. These include online platforms and physical stores. Online platforms are large, fast, and offer incredible reach to customers across the geographical spectrum. These platforms can offer other benefits, such as digital credit towards various sites and services. Physical stores or kiosks are the only option in some areas. They can also offer cash immediately, as opposed to waiting for your gift card to sell online.
Now that you’ve had a bit of introduction into how to exchange gift cards online, we can jump into the step-by-step process of selling value and choosing a marketplace. We’ll also answer some common questions about these exchanges at the end of this section. Read on to learn how you can make the most out of your unused or possibly unwanted gift cards now. When you plan to exchange a gift card, you should start by picking a time and a marketplace. As far as timing goes, selling now will get you in the market when buyers are looking for cards, and before the holidays drive up the supply and lower the prices. As for picking the right marketplace, online platforms and physical stores each have their own paradigms for exchanging cards. For online platforms, submission and listings are generally processed quickly. Just pay close attention to the transaction fee that can eat into your profits. A few tips to get the most value are to list your card close to your state minimum through auctions and to jump on promotional deals. For physical kiosks or stores, locate what’s near you. Know the gift card purchase restrictions and fees. Also, leave those big discount cards at home when you go in.
Types of Gift Card Exchange Platforms
Apple’s App Store introduced peer-to-peer transfers and trading in 2008. Online marketplaces and retail patented exchange kiosks followed in 2009 and 2010, respectively. Today, there are exchanges on gift card swap websites, on top of the three types of platforms that we already mentioned. These online and brick-and-mortar entities each offer unique and superior benefits, including accessibility, rates, and policies. Peer-to-peer exchanges are particularly convenient for being faster and less complicated. Moreover, this category of platforms has a few points of distinction, like the lack of requirement for the return of an exchanged gift card.
Some websites offer gift card exchange services—are these platforms part of any of the three types above? It appears that they do not form a type. If you are choosing an exchange service, be aware of the following aspects before proceeding: fees, the rate that will be offered in exchange for the card, which cards for desirable stores are most available, the company’s reliability, the company’s reputation for consistently offering and selling the specific card you are interested in, and if you are looking to purchase gift cards as well, the company’s willingness and trustworthiness in offering that type of transaction. Be sure to research and see which platform best suits you. Keep in mind that the options we have in the market are always changing, making it easier to get close to the exchange rate of the gift card you want.
Best Practices for Gift Card Exchange
For starters, customers must check the exchange rate provided by the platform. In some cases, some exchange sites will try to give the lowest transaction value. Customers should also research the gift card exchange to ensure that it is a good fit. Online reviews and social media presence are the best places to start to determine the reputation of the exchange. Always look for an exchange site that puts security and transparency first. Finally, in a world increasingly affected by issues of privacy, customers should do what they can to protect their data. Timing also factors into the mix. The value of gift card exchanges depends on the conditions of the market. Just as with the stock market or the housing market, the price and availability of gift cards can fluctuate dramatically. Sellers looking for a fair deal should consider fashion when well-known items are exchanged at a high rate. In addition, those buying other people's gift cards must also do their homework. For example, buyers should consider how much time has passed since the date of issue and how many times the gift card has been resold. Older cards and cards that change hands often should be discounted. Customers seeking the best deal must also monitor the market for surprise deals. Customers should follow exchange sites on social media and sign up for their newsletters to receive updates on transaction offers and promotions.
Checking the Exchange Rate
An essential step in the process of gift card exchange is checking the rates at which traders online are willing to buy gift cards from sellers. One important thing to note is that there is no universal rate at which all traders buy cards. People who plan to transact business with such platforms must research exchange rates from as many reputable platforms as possible. Though these rates may be slightly different from each other, the key point to keep in mind when transferring gift cards is that these rates often fall within a certain close range of values. With this in mind, the importance of checking available exchange rate offers stems from the fact that the validity of the offers available on a platform can significantly affect the amount of money a person who sells a card stands to make.
Tools exist to facilitate this research, and while many people know what an exchange rate check is, many do not understand what it is about or why it is important. Many believe that traders claim the exchange rates are favorable at the time they check them in order to persuade them to initiate transactions. However, when these checks are completed over a range of effective trading platforms in the market, what it shows is the general trend of exchange rates present in the gift card market. With an understanding of this, the process can be likened to buying stocks. A misstep, such as buying a card when its exchange rate is at historic lows, could simultaneously imply forgoing a favorable exchange and losing out on potential profits. Unlike stocks, though, present values of cards at which they can be sold or exchanged fluctuate, and it is for this reason that one may be more proactive with trading. It is possible to actually wait for things to get cheaper and get more money.
Protecting Your Personal Information
Verify that the gift card buyer is a reputable exchange platform or individual seller. Look for high seller ratings, check the review section, and be suspicious of a buyer who is inconsistent. One who changes their account information, tries to negotiate lower prices, or has a low sale history is likely trying to scam you. Be cautious of phishing. Scammers will attempt to trick you into providing information. Verify that the site link is secure before entering any information. Verify the exchange platform’s authenticity by checking that the site is secure. You can tell a site is secure when the link has an https in front of it. This means the information you send to and from the site is encrypted. Make sure the exchange platform has terms of service and a privacy policy. This is a protective measure and also educates you on what your rights are as a user of the platform. Destroy any leftover or no longer needed physical copies of the card, including scratched-off code pictures on your phone. To destroy this information, there are various ways to do it. Some people cut the card to break the magnetic strip, others will use a giant magnet to wipe the strip and code clean. Another method is to scribble all over the magnetic strip and card code and then scratch the strip back up. Then, dispose of the card.
Common Mistakes to Avoid
One of the mistakes commonly made by individuals participating in gift card exchange programs is the act of not doing research about the company they have chosen to work with. This could be the exchange provider or a store that the card is from. It's also common for people not to verify a card's legitimacy. Anytime you receive a card from someone, either through housewarming, thank you, birthday, or Christmas, always ask if they would mind if you verify the balance.
Another common mistake that users tend to make when it comes to gift card exchange is not to read the fine print. Once you've found a card on the exchange site you've chosen, and you're ready to purchase or exchange it for a card that you have or want, be sure to read all the fine print that comes along with the card before you confirm and purchase it. You should also go to the physical site as well. You may discover some valuable information that could change your mind about buying this card or purchasing on the site. A final mistake that people tend to make is to ignore the expiration date. Some sites allow you to exchange your card and some don't. If this feature matters to you, be sure to verify it before making any final decisions.
Future Trends in Gift Card Exchange
Technological advancement is fast-paced and is likely to greatly affect the nature and efficiency of the gift card exchange landscape over the coming years. Mobile payment systems are becoming more popular and are likely to have a big impact on the nature of exchange from a user perspective, as cryptocurrency and digital wallets become more commonplace. These developments could pave the way for specialized exchange platforms based on these advancements. Additionally, an increasing proportion of consumers have expressed a desire to purchase cards from platforms offering a refund, with a significant percentage of survey respondents stating that card refunds are 'very important' and a further percentage stating that refunds are 'important'. Future gift card exchange platforms or mechanics may well be encouraged to integrate a card refund facility in order to adapt to the demands of consumers.
It is worth noting that potential regulators may differ depending on the nature of the exchange mechanism, and that exemptions or 'grace periods' may be offered based on this fact. In a number of less regulated territories, online marketplaces have risen in prominence since the late 1990s and beyond. These online services offer a convenient way for consumers to sell unwanted items to a global market; a flea market for more frugal, if no less obsessed, consumers. An increase in the number of these online marketplaces arose in the wake of the mass adoption of the internet and has been observed to be roughly proportional to the rise of online shopping in general. Whether the same kind of market forces will drive a similar kind of expansion in the gift card exchange world is a tricky question, but the evidence of an increasing consumer base for these latter services suggests that it is a real possibility.
