If you are still carrying around gift cards you received this Christmas, you may be wondering, Do gift cards expire? It varies from state to state, but in many states, they can and will eventually expire. For that and other reasons, it is best to use quickly.
Unfortunately, as much as $5 billion in gift card balances will go unspent this year, potentially resulting in a windfall to the merchants who sell the cards. Although the rules vary, depending on where you live and what type of card you have, the safest course is to use the balance of the gift card or gift certificate within a year from its issuance.
Now is a particularly good time to take advantage. Many retailers have slashed prices in the wake of a Christmas season, and a struggling economy might mean even more motivation to move inventory. If you don’t enjoy shopping, check to see if you can use your gift card online.
If you really cannot see yourself using that your card, within a year, check out resale sites like plasticjungle.com, giftcardrescue.com, or swapagift.com. Plasticjungle.com, for example, allows you to sell your cards with a minimum value of $25 for up to 85 percent of the balance, exchange them for credits at other websites, like Amazon.com, or donate them to charity.
So do not forget about that gift card eating a hole in your wallet. Take advantage of sales, shop online, or exchange it for cash because yes, gift cards do expire in some states.
The Federal Reserve is continuing to hone in on unfair practices with plastic money, but in my opinion they are not going far enough – we need Gift Cards with no fees. After passing the Credit CARD Act earlier this year, it has now proposed rules that would “restrict the fees and expiration dates that may apply to gift cards,” said a press release last week. Under the pending rules, gift card terms and conditions would be required to be stated clearly.
