The Gift Card Dilemma:
According to the National Retail Federation (NRF), gift cards topped the list as the most requested holiday gift for the eleventh year in a row! Unfortunately, many of these gift cards miss the mark. Some gift cards are unwanted altogether or have values that make them difficult to use. For many reasons, selling may outweigh using the gift card.
CBS Money Watch reports that $1 billion dollars are spent on gift cards that are never used. And, the longer you wait, the more likely the card will be lost or forgotten in a junk drawer. What a sweet present for the retailers that issued the gift card!
The gift card is certainly appreciated, but sometimes selling gift cards outweighs the costs of using them. Here are a few factors to consider that may help you decide.
- Cash is King! When you have bills to pay, car repairs, or just everyday living expenses, selling the gift card for cash outweighs using the card.
- Travel is Required. If you live in a rural area or suburb, and the nearest store or restaurant brand is not in your town, this makes using the card more difficult. You might decide that selling outweighs using the gift card.
- Shipping, Handling, and Taxes. Shopping online is convenient, but now that the holidays are over, so are most of the free, low-cost shipping options! Also, retailers have a markup on shipping and handling fees which helps them make more money on transactions. If a significant portion of your gift card will be gobbled up with shipping, handling, and taxes (shipping and handling fees are taxable), selling outweighs using your gift card.
- Low Gift Card Value. When the value of the gift card is too small to buy anything you want or need, then the gift card becomes more like a coupon than a gift. It helps, but you have to decide whether selling the gift card outweighs using your own money.
Safety, Value, and No Major Credit Card Required
If you have decided that selling your gift card outweighs using it, now you have to decide where to sell it. Although you can find gift card buyers through social media or online classified ads, selling your gift card at one of our seven stores is the easiest and safest way to get cash. You may get a higher offer from an individual, but you also run the risk of being scammed. So make sure you know who you’re dealing with before you allow anyone to handle your gift card or see your gift card number.
Online gift card exchanges and those gift card machines in grocery stores and mall kiosks require a major credit card (debit cards are not accepted) to guarantee and complete the transaction. If anything goes wrong, the chargeback ends up as a Cash Advance transaction on your credit card statement! The chargeback fees and Cash Advance interest rate can end up costing you much more than the card value. And, if you do not have a major credit card, these options are not available to you.
How Gift Card Exchanges Work
Gift card exchange companies buy and sell gift cards at a “discounted rate” which means your cash offer will be less than the dollar amount on the gift card. These discounted prices vary based on the brand and popularity. Major discount retailers that sell a variety of merchandise receive the highest payouts. Entertainment gift cards like movie theaters and restaurants usually receive the lowest payouts. At Uncle Dan’s, we have done the hard work for you and contracted with companies that offer the best discount rates for our customers! Depending on the retailer, you can expect 50 – 65 percent of the gift card’s value.
Instant Cash Today
As a service to our customers, Uncle Dan’s pays cash upfront for most gift cards. For high dollar gift cards or designer brand cards, customers may have a waiting period before they get cash. In these situations, Uncle Dan’s will provide a price quote based on the information given. The waiting period is to verify and liquidate the card balance which is usually 24 – 72 hours.
In summary, often selling gift cards outweighs the costs of using the card. At Uncle Dan’s, we will offer you the highest payouts available for immediate cash. Use the link to get a guaranteed quote that is good for seven days. In most cases, you will receive cash on the spot in a safe, friendly environment.