Five Back Gift Card 101: A Consumer's Essential Handbook
Gift cards are a popular option for gift-giving, allowing people to choose their own merchandise or services. For retailers, they also double as a marketing and revenue tool. And, for consumers, they can be a valuable source of outsized rewards, assuming that you know how to play the game.
But, how do gift cards work? What is a gift card?
A gift card (also known as a gift certificate, gift voucher or gift token) is a prepaid stored-value money card that can be used to buy goods or services at a particular store or group of stores. Gift cards are often marketed as a gift or promotional item given to customers or employees by retail and financial institutions, and they act like traditional bank debit cards and cash in many ways.
Most major retailers offer gift cards, and they're also available at some banks. Some gift cards are specific to a single store, while others can be redeemed at all locations in a chain or affiliated groups. Some credit card issuers even offer general-use gift cards that don't need to be redeemed at a specific store.
Gift cards come in two forms—a physical plastic card or an ecode that's purchased online. In either case, the value of a gift card is tracked on a database and can be used just like a credit or debit card at any retailer that accepts those cards. Some retailers also offer their own branded gift cards to boost their brand and customer loyalty.
When you purchase a gift card, it's important to read the fine print and understand what the terms and conditions are. This will help you avoid any misunderstandings between yourself and the giftee. For example, you should be aware of whether the gift card has an expiration date or if there are fees for using it. It's also a good idea to register your gift card so that you can track its balance in the event it gets lost or stolen.
If you're unsure of what to buy for someone, a gift card is a great option. It lets them get exactly what they want and allows you to be more thoughtful than just giving a check or cash. Gift cards are especially useful when it comes to those hard-to-shop-for people, such as a spouse or child who might only be interested in a certain type of store or restaurant.
However, sometimes the items or services bought with a gift card don't end up being the right fit—maybe the recipient isn't a fan of the music chain you gifted them a gift card to, or they might prefer something different from what the card is for. In those cases, it might be better to give them back or turn them into cash instead of letting them sit around for months or years before they're ever used. How do gift cards work?
Gift cards work in a similar way to credit cards. When the card is swiped at the point of sale, the total purchase amount is deducted from the balance on the card. If the purchase amount is higher than the balance, the transaction is declined. Gift cards also behave differently than credit cards when it comes to fees and charges. While most retailers don’t charge for the use of their gift cards, some do impose a fee on the card when it is sold or redeemed. This is typically the case for gift cards sold by a bank or financial institution.
When it comes to choosing the right gift card for someone, consider their interests and needs. For example, if your friend or family member loves to cook, you could buy them a gift card for a local cooking school. This is a great way to help them learn new skills while having fun and socializing with friends.
Gift cards are a great tool for businesses to attract new customers and increase brand awareness. They are easy for consumers to redeem and can be used for a variety of products and services. In addition, gift cards often encourage customers to spend more than the value of the card, meaning that they can drive revenue for a business even when they don’t have cash on hand fivebackgift.com
In 2009, Congress passed the Credit Card Accountability Responsibility and Disclosure Act, which set consumer protections for gift cards. Among other things, the law states that gift cards cannot expire within five years of activation and limits dormancy and inactivity fees on gift cards. The law leaves other states the option to regulate other aspects of gift card sales and redemption. For instance, some states may not allow businesses to sell or give away gift cards that can only be used at one specific company. This type of gift card is known as a closed-loop gift card. Consumers who prefer a flexible option should choose open-loop gift cards, which can be redeemed at multiple locations. How do I use my gift card?
Whether you receive a gift card as a birthday present or buy one for yourself, it's important to use the money on the card wisely. You should always check the expiration date, as some cards come with a maintenance fee if they go unused for an extended period of time.
Some credit cards let you add your gift cards to your online account, which makes them easy to track and use. Amazon, for example, lets you add a card to your account and then pay with that as your default payment method when shopping. That way, you'll be less likely to forget about the card or let it sit in your drawer.
Another tip: When you get a new gift card, make sure to activate it right away. This will ensure that you have the funds on hand to spend it. It's also a good idea to write the remaining balance on the card so you don't lose track of it.
If you're not going to use a gift card, consider giving it to a friend or family member who might. Or you could donate it to charity. Many charities accept gift cards and will allow you to write off the donation on your taxes.
You can also trade or sell gift cards on various sites. This can be a great option if you have gift cards for stores or restaurants that you don't like or for which you don't have any nearby locations. If you're able to find a buyer, you can turn the gift card into cash or other merchandise.
Gift cards are a great way to give your checking account a break or buy yourself something pretty sweet. But if you don't use the cards you receive or don't want to spend them, they can become a real pain in the neck. With a little thought, however, you can make the most of your gift cards and help them live up to their full potential. How do I sell my gift card?
When someone gives you a gift card for a store or restaurant you don't really like or can't afford, it can be tempting to just throw it in a drawer and forget about it. But instead, you can turn your gift cards into cash or merchandise using one of the many online or app-based marketplaces that buy them.
Some sites, such as Raise and GameFlip, specialize in buying gift cards from consumers and sell them at a profit. They typically offer the highest payouts for most brands and will tell you their lowest list price within seconds, making it easy to compare offers. They also typically provide a safe and secure transaction, and can deposit your payment into your account or mail you a check within 48 hours.
Other marketplaces that buy gift cards include CardSell, Amazon Gift Card Exchange and ClipKard. In addition to giving you cash for your unused gift cards, some of these websites will give you points that you can redeem in the future for discounts on your own purchases.
Probably the easiest and safest way to sell your gift card is to find a friend who would be interested in it. If they're local, you can meet up to exchange the card in person. If not, you can use a service such as Craigslist or PayPal to make the sale.
Another option is to donate the gift cards to a charity. Websites such as CharityChoice allow you to choose from more than 2,500 charities and will buy your unwanted gift cards. You can also drop off gift cards at many Coinstar Exchange kiosks that let you turn coins into cash.
Some states also have laws that allow you to trade in your gift card for cold, hard cash if the total value is under a certain amount. Check with your state's consumer protection agency to see what your options are. If you have a lot of unwanted gift cards, consider donating them to a nonprofit that does good work in your community. It's an excellent way to put them to good use while also getting a tax deduction in the process.
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