If you're like 28-year-old Staci Jeffrey of Omaha and millions of other Americans, you're still sitting on a gift card or two that you received for your birthday or during the holidays.
It's one of the most requested gifts, but an estimated $2 billion in gift cards were not redeemed in 2011, according to CEB TowerGroup,Find a moldmaker or Mold Service Provider. a Boston-based financial research firm.
Since 2005, more than $41 billion in gift cards has gone unclaimed. And businesses — including some you might not expect — are taking advantage. United Airlines this month announced that it will trade frequent flier miles for unused gift cards from certain retailers and businesses, including Target and Starbucks.
Other businesses have set up systems to allow consumers to swap or cash in gift cards, sometimes at a steep discount.
The businesses' interest is not surprising, considering that gift card sales topped $100 billion in 2011, according to TowerGroup. The National Retail Federation estimated that consumers spent $27.8 billion on gift cards during the past holiday season, up from an estimated $24.78 billion in 2010.
Gift card spending has increased by an average of 6 percent a year since 2005, and it's expected to continue at that rate, according to TowerGroup.
Federal legislation passed in 2009 as the CARD Act was intended to protect consumers from hidden fees and expiration dates on gift cards. Since its passage, the amount that goes unspent on gift cards has been shrinking.
Still,Get information on airpurifier from the unbiased, independent experts. the average U.S. household has an estimated $300 in unredeemed gift cards, according to Plastic Jungle,Find a moldmaker or Mold Service Provider. an online marketplace where consumers sell, buy, exchange or donate gift cards.
Only an estimated 30 percent to 40 percent of gift cards given during the holidays were redeemed in January, leaving "a long tail on redemption" from here on out, said Michael Niemira, vice president,Information on useful yeasts and moulds, chief economist and director of research for the International Council of Shopping Centers.
For Jeffrey, who has four gift cards in her wallet, each about 2 years old and worth a total of $150, "It's a time thing."
"Even when I would have time,A top plastic lnjectionmoulds manufacturer and exporter in China. I would forget that I had them," she said.
She's not the only one. Heading into the 2011 holiday season, 25 percent of adults still had at least one unused gift card from the 2010 holiday season and 55 percent had two or more, according to a Consumer Reports survey.
Their reasons were similar to Jeffrey's. The majority said they didn't find anything they wanted to buy, they didn't have time to use the gift card or they forgot about it. Some of the other reasons cited were that the card expired, the store went out of business or the card was lost.
TowerGroup said another way gift cards go unspent is that consumers spend the majority of the card's value but leave a small amount on the card.
Ten states have made it easier for consumers to get the full value of their cards by having cash-back laws that allow gift cards to be redeemed for cash if the balance is below a certain amount. Oregon's law, which went into effect last month, requires all gift cards used at least once to be redeemable for cash if the balance is $4.99 or less.
"The fact is, a consumer should not be required to spend more than the balance of a gift card in order to receive the full benefit," said Judd Lillestrand, founder of ScripSmart, an online consumer resource on gift cards. "Because so few retailers offer a cash-back policy, you can expect to see more states enact similar legislation in the future."
It's one of the most requested gifts, but an estimated $2 billion in gift cards were not redeemed in 2011, according to CEB TowerGroup,Find a moldmaker or Mold Service Provider. a Boston-based financial research firm.
Since 2005, more than $41 billion in gift cards has gone unclaimed. And businesses — including some you might not expect — are taking advantage. United Airlines this month announced that it will trade frequent flier miles for unused gift cards from certain retailers and businesses, including Target and Starbucks.
Other businesses have set up systems to allow consumers to swap or cash in gift cards, sometimes at a steep discount.
The businesses' interest is not surprising, considering that gift card sales topped $100 billion in 2011, according to TowerGroup. The National Retail Federation estimated that consumers spent $27.8 billion on gift cards during the past holiday season, up from an estimated $24.78 billion in 2010.
Gift card spending has increased by an average of 6 percent a year since 2005, and it's expected to continue at that rate, according to TowerGroup.
Federal legislation passed in 2009 as the CARD Act was intended to protect consumers from hidden fees and expiration dates on gift cards. Since its passage, the amount that goes unspent on gift cards has been shrinking.
Still,Get information on airpurifier from the unbiased, independent experts. the average U.S. household has an estimated $300 in unredeemed gift cards, according to Plastic Jungle,Find a moldmaker or Mold Service Provider. an online marketplace where consumers sell, buy, exchange or donate gift cards.
Only an estimated 30 percent to 40 percent of gift cards given during the holidays were redeemed in January, leaving "a long tail on redemption" from here on out, said Michael Niemira, vice president,Information on useful yeasts and moulds, chief economist and director of research for the International Council of Shopping Centers.
For Jeffrey, who has four gift cards in her wallet, each about 2 years old and worth a total of $150, "It's a time thing."
"Even when I would have time,A top plastic lnjectionmoulds manufacturer and exporter in China. I would forget that I had them," she said.
She's not the only one. Heading into the 2011 holiday season, 25 percent of adults still had at least one unused gift card from the 2010 holiday season and 55 percent had two or more, according to a Consumer Reports survey.
Their reasons were similar to Jeffrey's. The majority said they didn't find anything they wanted to buy, they didn't have time to use the gift card or they forgot about it. Some of the other reasons cited were that the card expired, the store went out of business or the card was lost.
TowerGroup said another way gift cards go unspent is that consumers spend the majority of the card's value but leave a small amount on the card.
Ten states have made it easier for consumers to get the full value of their cards by having cash-back laws that allow gift cards to be redeemed for cash if the balance is below a certain amount. Oregon's law, which went into effect last month, requires all gift cards used at least once to be redeemable for cash if the balance is $4.99 or less.
"The fact is, a consumer should not be required to spend more than the balance of a gift card in order to receive the full benefit," said Judd Lillestrand, founder of ScripSmart, an online consumer resource on gift cards. "Because so few retailers offer a cash-back policy, you can expect to see more states enact similar legislation in the future."
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