What Percentage of Gift Cards Go Unused?

You know that kitchen drawer everyone has? The one that becomes a graveyard for random keys, old phone chargers, and menus from the pizza place that closed two years ago? You finally decide to brave the chaos, telling yourself you’ll just “quickly tidy it.”

That’s when your fingers brush against it. Behind a tape measure and a handful of expired coupons, you find a slightly bent gift card. The design is festive, but you can’t for the life of you remember if it was from Christmas or maybe that birthday two years ago?

A little sigh escapes. “Ah, man. I was totally going to use this,” you think, a mix of disappointment and mild self-annoyance washing over you. Was there still money on this? I meant to use that.

You promise yourself you’ll check the balance online later. But then your phone buzzes, the drawer gets shut, and the card is once again lost to the universe of forgotten things.

If that little scene feels a little too real, welcome to the club. It turns out, that single forgotten card in your drawer is part of a much, much bigger story, a multi-billion dollar one, in fact. It all leads to a fascinating question: what percentage of gift cards go unused?

Let’s dig into the answer together. We’ll uncover the numbers, laugh at the reasons we’re all so forgetful, and find some simple ways to make sure that next gift card gets used.

The Popularity of Gift Cards Today

It’s no secret why gift cards are a go-to present. They’re the perfect solution when you want to be thoughtful but also give someone the freedom to pick exactly what they want. It’s no wonder gift cards are so popular.

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While they’re a hit around the world, let’s be honest, here in the U.S., we really love them. They’re the go-to solution for the birthday you almost forgot or the holiday when you just can’t decide.

And let’s talk about digital gifts. That “oh no” moment when you realize a birthday slipped your mind? Now, instead of a panicked store run, you can find a gift card on your phone and send it in seconds.

They’re the ultimate safety net. They give the recipient the freedom to choose, and they save us from giving another sweater that might not fit. It’s a win-win.

Let’s Talk Numbers: How Common Is This Really?

So, what are the real stats on what percentage of gift cards go unused? You’re not alone in that drawer-cleaning discovery.

In fact, it’s incredibly common. A recent Bankrate survey found that 43% of Americans, that’s nearly half of us, are in the exact same boat, sitting on at least one unused card or voucher.

Globally, the pattern is clear, with studies suggesting between 5% and 10% of all gift card value never gets spent. But when we zoom in on what percentage of gift cards go unused in the USA, the story gets even more interesting.

Here, the figure tends to sit between 6% and 8%. That percentage might sound small, but it adds up to a staggering amount, over $3 billion left on the table each year.

But that’s just the big picture. On a personal level, the average person with an unused card is sitting on $244. That’s not just loose change; that’s a nice pair of shoes, a week of groceries, or a nice dinner out that’s just waiting.

And for some of us, the cost is even higher. The survey uncovered a surprising twist: this isn’t just a problem for people trying to make ends meet.

In fact, 55% of households earning over $100,000 a year have unused gift cards, with an average value of $348. It seems that when money isn’t as tight, it’s easier for a card to fall through the cracks.

Meanwhile, only 35% of households earning under $50,000 have unused cards, but the loss of that $180 average hits much harder.

This isn’t just about forgetfulness. The survey shows that 1 in 3 Americans have lost money on a gift card misstep, by letting it expire, losing the physical card, or having a store go out of business.

So, that forgotten card in your drawer? It’s part of a much bigger story about our busy lives and habits. It’s real money, just sitting idle.

To put that $3 billion in perspective, that’s enough to buy a new laptop for every student at a dozen large universities. It’s a quiet fortune, collectively gathered in our junk drawers.

Why Do Gift Cards Go Unused?

Life gets busy, and gift cards are small. The reasons they go unused are often simple and very human:

• Forgotten: The most common reason is forgetfulness. A plastic card gets buried, or an email with a digital code gets lost in the inbox.
• Low Balance: Is it worth a trip to the store for just $4.37? Often, it doesn’t feel like it.
• Lost or Expired: Cards get lost. And while federal law now gives most cards a five-year life, some can still expire or be eaten away by fees.
• Not Your Style: Sometimes, you get a card for a store you just don’t shop at.
• The Store Disappears: The retailer goes out of business, and the card becomes a souvenir.

Impact of Unused Gift Cards on Consumers

For you and me, an unused gift card is like misplacing cash. It’s a direct loss. There’s a touch of sadness, too, a well-meant gift from a friend or family member has gone to waste.

People often ask can gift cards can be traced if they’re lost, but the reality is, it’s usually very difficult. That value is often just gone.

The Business Side: Who Benefits from Unused Gift Cards?

You might wonder, who benefits from all this unused value? The answer is businesses. In the retail world, this unspent money is called “breakage,” and it’s a significant source of profit.

After a certain period, companies can legally claim that unused gift card money as revenue. It’s a legal practice, but it does make you think about where that forgotten $25 ends up.

Plastic vs. Digital: Which One Gets Used?

You might think digital gift cards have a better chance. And you’re probably right. Since they live in your email or phone, they’re harder to physically lose. Many apps will even remind you of your balance.

But they can also be forgotten in a crowded inbox. The biggest advantage of understanding how an e-gift card work is the immediacy, you can often buy and use them in the same minute, which means less time to forget.

What Can You Do with an Unused Gift Card?

Found a stash of old cards? Don’t just shrug. Here’s what you can do:

• Keep Them in Sight: Designate a spot in your wallet for plastic cards and a folder in your email for digital ones.
• Give Them Away: Many charities would be thrilled to receive a gift card donation.
• Combine Small Balances: Use a few cards with small amounts together for one bigger purchase.
• Use It or Lose It: The simplest tip is the best. Next time you’re near the store, just pop in and use it.

If you truly can’t find a use for a card, some stores may allow you to return a gift card if it’s unused and you have the receipt, but this is rare. Selling or swapping is usually a more reliable option.

Future of Gift Cards: Will the Problem Shrink?

The future looks a little brighter for unused cards. As cards become more connected to our phones and wallets, automatic reminders will become standard.

Gifting is also getting smarter, with recommendations that help people choose more relevant stores. We’ll likely never see a 0% unused rate, but with a little effort, we can certainly do better.

Wrapping It Up

So, here’s the thing: billions of dollars in gift cards collect dust each year. It’s not a story of bad gifts, but of good intentions getting lost in the shuffle of our busy lives.

But now that you know the real answer to what percentage of gift cards go unused, you have the power to change the story. It starts with a quick check of your wallet or that infamous “junk drawer” the next time you’re thinking about it.

See that forgotten card not as a chore, but as a small opportunity. It’s a free coffee, a contribution toward something you really want, or a chance to help someone else out. That little piece of plastic or digital code is a gift that hasn’t finished giving yet. So go ahead, find it and finally put it to work.