Cashing out a gift card can be a smart move, especially when you need cash or prefer not to shop at the specific store. At lawyergift.com, we understand the need for flexibility, so let’s explore how to turn those gift cards into cash, offering practical solutions and maximizing your return. Discover easy ways to liquidate gift cards, convert store credit and secure financial options.
1. What Is A Gift Card And Why Cash It Out?
A gift card is a prepaid card loaded with a specific value, redeemable for purchases at a retailer, restaurant, or other business. Cashing out a gift card simply means converting its value into cash.
- Closed-loop gift cards: Can only be used at the specific retailer that issued them.
- Open-loop gift cards: Issued by major payment networks like Visa or Mastercard and can be used at any merchant that accepts those cards.
Many people prefer cash due to its versatility. Cash can be used for any purpose, from paying bills to covering unexpected expenses. Cashing out a gift card provides this flexibility, turning store credit into usable currency.
2. What Are The Primary Reasons To Cash Out A Gift Card?
There are several compelling reasons why someone might want to cash out a gift card.
2.1. Need For Cash
Sometimes, the need for cash is immediate and pressing. Gift cards cannot pay bills or cover emergency expenses. Cashing out provides access to funds that can be used for any purpose. According to a 2023 survey by the National Retail Federation, approximately 54% of consumers prefer to receive cash as a gift, highlighting the inherent value of liquidity.
2.2. Lack Of Interest In The Retailer
The recipient may not be interested in the products offered by the retailer. Cashing out avoids forcing a purchase and allows the recipient to use the value elsewhere. This is particularly relevant for closed-loop gift cards limited to a single store.
2.3. Unwanted Gift
The gift card might not align with the recipient’s tastes or needs. Instead of letting it sit unused, cashing out ensures that the value is not wasted. A survey by CreditCards.com in December 2022 found that Americans had approximately $15 billion in unredeemed gift cards.
2.4. Avoiding Clutter
Some people prefer a minimalist approach to possessions, and an unused gift card can feel like clutter. Cashing out eliminates the need to keep track of the card and reduces wallet clutter.
2.5. Expiration Concerns
Gift cards can have expiration dates or dormancy fees that diminish their value over time. Cashing out ensures that the full value is realized before it’s too late. The Truth in Lending Act sets rules for gift cards, including a five-year minimum for expiration dates and restrictions on dormancy fees, but it’s still a concern.
2.6. Combining Multiple Cards
If someone has multiple small-value gift cards, cashing them out can consolidate the funds into a more usable amount. This eliminates the hassle of managing several different cards.
3. What Are The Methods For Cashing Out Gift Cards?
Several methods can be used to cash out a gift card, each with its advantages and disadvantages.
3.1. Selling Or Exchanging Gift Cards Online
This is one of the most popular and convenient methods. Online platforms connect sellers with buyers, offering a quick way to convert gift cards into cash.
3.1.1. Platforms To Consider
- CardCash: Buys unwanted gift cards, offering up to 92% of the card’s value. They provide instant offers and quick payouts.
- Raise: Allows you to sell your gift card or exchange it for another brand. They offer competitive rates and a user-friendly interface.
- Gift Card Granny: Aggregates offers from multiple buyers, helping you find the best deal. They also offer a rewards program.
- ClipKard: Focuses on providing a secure and reliable platform for selling gift cards, ensuring customer satisfaction.
- Cardpool: Offers both online and physical locations for selling gift cards, providing flexibility and convenience.
3.1.2. How It Works
- Check the Gift Card Balance: Verify the remaining balance on the card.
- Select a Platform: Choose a reputable online marketplace.
- Enter Card Details: Provide the gift card number and PIN.
- Receive an Offer: The platform will offer a percentage of the card’s value.
- Accept the Offer: If satisfied, accept the offer and follow the instructions to complete the sale.
- Receive Payment: Payment is typically issued via PayPal, direct deposit, or check.
3.1.3. Advantages
- Convenience: Sell from home without visiting a physical store.
- Higher Payout: Often offers better rates compared to kiosks or pawn shops.
- Wide Reach: Access to a large pool of potential buyers.
3.1.4. Disadvantages
- Fees: Platforms charge a commission, reducing the payout.
- Payout Time: It may take several days to receive payment.
- Risk of Fraud: Potential for scams if using unverified platforms.
3.2. Using Gift Card Kiosks
Gift card kiosks are automated machines located in shopping malls, grocery stores, and other retail locations. They offer an immediate way to sell gift cards for cash.
3.2.1. How It Works
- Locate a Kiosk: Find a kiosk near you, often found in high-traffic areas.
- Insert the Gift Card: Swipe or insert the gift card into the machine.
- Receive an Offer: The kiosk will display an offer based on the card’s value.
- Accept or Reject: Choose to accept the offer or reject it if unsatisfied.
- Receive Cash: If accepted, the kiosk dispenses cash.
3.2.2. Advantages
- Instant Cash: Receive cash immediately, without waiting for processing.
- Convenience: Quick and easy transaction.
- No Shipping: Avoid the hassle of shipping the card.
3.2.3. Disadvantages
- Lower Payout: Kiosks typically offer lower rates compared to online platforms.
- Limited Brands: May not accept all types of gift cards.
- Non-Negotiable Offers: The offer is usually fixed and cannot be negotiated.
3.3. Buying And Reselling Items
This method involves using the gift card to purchase items that can be resold for cash. It requires more effort but can yield a higher return.
3.3.1. How It Works
- Identify High-Demand Items: Determine products that are in demand and easy to resell.
- Purchase Items: Use the gift card to buy these items from the retailer.
- Resell Items: List the items for sale on platforms like eBay, Craigslist, or Facebook Marketplace.
- Receive Cash: Once sold, receive cash for the items.
3.3.2. Items To Consider
- Electronics: Smartphones, tablets, and gaming consoles.
- Fashion: Brand-name clothing, shoes, and accessories.
- Home Goods: Small appliances and popular household items.
- Collectibles: Limited edition items and rare finds.
3.3.3. Advantages
- Potential for Higher Return: If you choose the right items, you can recover most or all of the card’s value.
- Control: You have control over the selling price and process.
- Flexibility: Can be done with various types of gift cards.
3.3.4. Disadvantages
- Time-Consuming: Requires time to purchase and resell items.
- Risk of Loss: Items may not sell quickly or at the desired price.
- Effort: Requires effort to list, manage, and ship items.
3.4. Claiming Remaining Balances (Cash Back)
Some states have laws that require retailers to provide cash back for gift cards with low remaining balances.
3.4.1. How It Works
- Check State Laws: Determine if your state has a cash-back law for gift cards.
- Visit the Retailer: Go to the store where the gift card was issued.
- Request Cash Back: Ask the cashier to redeem the remaining balance for cash.
- Receive Cash: The cashier will provide cash for the remaining balance.
3.4.2. State Laws
- California: Retailers must provide cash back for balances under $10.
- Colorado: Cash back is required for balances under $5.
- Maine: Balances under $5 can be redeemed for cash.
- Washington: Retailers must provide cash back for balances under $5.
3.4.3. Advantages
- Simple and Quick: Easy to redeem the remaining balance.
- No Fees: Avoid fees associated with selling or exchanging cards.
- Convenient: Can be done while shopping at the store.
3.4.4. Disadvantages
- Low Balances Only: Only applicable for small remaining balances.
- State Restrictions: Limited to states with cash-back laws.
- Retailer Compliance: Some retailers may not be aware of the law or may resist compliance.
3.5. Gifting To Friends And Family
If you can’t use the gift card, consider gifting it to someone who can.
3.5.1. How It Works
- Identify a Recipient: Find someone who would appreciate the gift card.
- Give the Gift Card: Offer the gift card as a present.
3.5.2. Advantages
- Simple and Easy: No additional effort required.
- Generosity: Spreads goodwill and strengthens relationships.
3.5.3. Disadvantages
- Not Cashing Out: Does not provide cash.
- Dependence on Others: Relies on finding someone who wants the card.
3.6. Selling To Pawn Shops
Pawn shops may offer cash for gift cards, though typically at a significant discount.
3.6.1. How It Works
- Visit a Pawn Shop: Go to a local pawn shop.
- Present the Gift Card: Show the gift card to the pawnbroker.
- Receive an Offer: The pawnbroker will offer a percentage of the card’s value.
- Accept or Reject: Choose to accept the offer or reject it if unsatisfied.
- Receive Cash: If accepted, receive cash for the gift card.
3.6.2. Advantages
- Quick Cash: Get cash on the spot.
- Simple Process: Easy transaction with minimal requirements.
3.6.3. Disadvantages
- Low Payout: Pawn shops typically offer very low rates.
- Limited Acceptance: May not accept all types of gift cards.
3.7. Trading For Favors Or Services
Use the gift card to trade for services or favors from friends, family, or acquaintances.
3.7.1. How It Works
- Identify Needs: Determine what services or favors you need.
- Offer the Gift Card: Offer the gift card in exchange for the service.
3.7.2. Advantages
- Creative Use: Finds a practical use for the gift card.
- Mutually Beneficial: Both parties benefit from the exchange.
3.7.3. Disadvantages
- Dependence on Others: Relies on finding someone willing to provide the service.
- Negotiation: Requires negotiation to agree on terms.
3.8. Donating To Charity
Donate the gift card to a charitable organization.
3.8.1. How It Works
- Choose a Charity: Select a reputable charity.
- Donate the Gift Card: Give the gift card to the charity.
3.8.2. Advantages
- Philanthropy: Supports a good cause.
- Tax Deduction: May be tax-deductible (consult with a tax advisor).
3.8.3. Disadvantages
- Not Cashing Out: Does not provide cash.
- Loss of Value: The value is given away rather than redeemed personally.
4. What Are The Key Considerations Before Cashing Out?
Before deciding to cash out a gift card, consider the following factors to make an informed decision.
4.1. Check The Gift Card Balance
Always verify the remaining balance on the gift card before attempting to cash it out. This ensures you know exactly how much value you have.
4.1.1. How To Check The Balance
- Online: Visit the retailer’s website and enter the card number and PIN.
- Phone: Call the customer service number on the back of the card.
- In-Store: Ask a cashier to check the balance at the store.
4.2. Evaluate All Options
Compare the payout rates and fees associated with different methods to determine the most cost-effective option. Consider the time and effort required for each method.
4.3. Check For Expiration Dates And Fees
Some gift cards have expiration dates or dormancy fees that can reduce their value over time. Check the terms and conditions to ensure the card is still valid and to avoid unexpected charges. According to the Consumer Financial Protection Bureau (CFPB), gift cards are generally protected from expiration dates within five years of the purchase date.
4.4. Consider The Urgency Of The Need
If you need cash immediately, a gift card kiosk or pawn shop might be the best option, despite the lower payout. If you can wait a few days, selling online may yield a higher return.
4.5. Security Considerations
Protect your personal and financial information when selling or exchanging gift cards online. Use secure platforms and avoid sharing sensitive details with untrusted parties.
4.6. Read Reviews And Testimonials
Before using an online platform or kiosk, read reviews and testimonials from other users to ensure it is reputable and reliable. Look for consistent positive feedback and a lack of reported scams or issues.
4.7. Understand The Terms And Conditions
Familiarize yourself with the terms and conditions of the gift card, as well as the policies of any platform or service you use to cash it out. This can help you avoid surprises and ensure a smooth transaction.
5. How To Maximize The Value When Cashing Out A Gift Card
To get the most out of your gift card when cashing out, consider the following strategies.
5.1. Compare Offers From Multiple Buyers
Don’t settle for the first offer you receive. Shop around and compare rates from different online platforms, kiosks, and pawn shops to find the best deal.
5.2. Sell Gift Cards For Popular Retailers
Gift cards for popular retailers like Amazon, Walmart, and Target tend to fetch higher prices due to their high demand. Focus on selling these cards for a better return.
5.3. Time Your Sale
Consider selling your gift card during peak shopping seasons, such as holidays or back-to-school, when demand is higher. This can increase the likelihood of getting a better offer.
5.4. Use Gift Card Reselling Sites With Promotions
Some gift card reselling sites offer promotions or bonus payouts for selling certain brands or during specific time periods. Keep an eye out for these opportunities to maximize your earnings.
5.5. Consider Exchanging For Another Gift Card
If you don’t need cash immediately, consider exchanging your gift card for one from a retailer you prefer. This can be a good way to get value from a card you wouldn’t otherwise use.
5.6. Sell Items Purchased With The Gift Card Strategically
If you choose to buy and resell items, research the market carefully to identify products that will sell quickly and at a good price. Consider selling on multiple platforms to reach a wider audience.
5.7. Negotiate With Pawn Shops
If you opt to sell to a pawn shop, don’t be afraid to negotiate the offer. Pawnbrokers may be willing to increase their offer if you are persistent and knowledgeable about the card’s value.
6. What Are The Common Scams And How To Avoid Them?
Be aware of potential scams when cashing out gift cards.
6.1. Phishing Scams
Scammers may try to trick you into providing your gift card details through fake emails or websites. Always verify the legitimacy of the platform before entering any information.
6.2. Fake Buyers
On online marketplaces, be wary of buyers who offer unusually high prices or ask for your gift card details upfront. Use secure payment methods and avoid dealing with unverified users.
6.3. Kiosk Scams
Some kiosks may malfunction or provide inaccurate offers. Always double-check the offer before accepting and report any suspicious activity to the kiosk operator.
6.4. Gift Card Hacking
Scammers may attempt to hack into gift cards to steal the balance. Protect your card details and report any unauthorized activity to the retailer immediately.
6.5. How To Avoid Scams
- Use Reputable Platforms: Stick to well-known and trusted websites.
- Verify Buyers: Check the reviews and ratings of buyers on online marketplaces.
- Secure Payment Methods: Use secure payment methods like PayPal or credit cards.
- Protect Your Information: Never share your gift card details with untrusted parties.
- Monitor Your Account: Regularly check your gift card balance for any unauthorized activity.
7. How Can Lawyergift.com Help You Find The Perfect Gift?
While lawyergift.com doesn’t directly cash out gift cards, we understand that sometimes you receive gift cards that don’t quite suit your needs. That’s why we offer a curated selection of unique and thoughtful gifts for lawyers that might be the perfect alternative to cashing out.
7.1. Wide Range Of Unique Gifts
At lawyergift.com, you can discover various unique gifts suitable for any occasion, ensuring you find something that resonates with the recipient’s personality and professional achievements.
7.2. Gifts For Every Occasion
Whether it’s a birthday, graduation, promotion, or just a thank-you gesture, lawyergift.com offers gifts tailored to various occasions, making it easy to find the perfect present.
7.3. Professional And Personalized Options
Find gifts that reflect the professionalism and dedication of lawyers, with options for personalization to add a special touch, making the gift truly memorable.
7.4. High-Quality Products
Each product on lawyergift.com is selected for its quality and craftsmanship, ensuring that your gift is both impressive and durable.
7.5. Easy And Secure Shopping Experience
Enjoy a seamless shopping experience on lawyergift.com, with secure payment options and reliable customer service, making your gift-buying process stress-free and enjoyable.
8. How To Turn A Gift Card Into A Thoughtful Lawyer Gift
Instead of cashing out your gift card, consider using it to purchase a thoughtful gift for a lawyer. Here’s how:
- Identify the Lawyer’s Interests: Determine if the lawyer enjoys reading, collecting art, or has other hobbies.
- Browse lawyergift.com: Look for items that align with their interests and profession.
- Use the Gift Card: Purchase the selected item using your gift card.
- Personalize the Gift: Add a personal touch, such as engraving their name or initials on the gift.
9. What Are Some Ideal Lawyer Gift Ideas From Lawyergift.com?
Consider these unique and thoughtful gift ideas from lawyergift.com:
9.1. Personalized Legal Themed Gifts
Add a personal touch to gifts such as scales of justice statues, gavels, or custom law bookends with the lawyer’s name or initials engraved. These make for sophisticated and memorable keepsakes.
9.2. High-Quality Pens And Desk Sets
Select premium writing instruments and elegant desk sets that reflect the lawyer’s professionalism and attention to detail. These practical yet stylish gifts enhance their workspace.
9.3. Law-Related Art And Decor
Choose law-related artwork, prints, or sculptures that add character to their office or home. These items can serve as conversation starters and showcase their passion for the legal field.
9.4. Subscription Boxes Tailored To Lawyers
Consider gifting a subscription box curated with items specifically for lawyers, such as legal books, stationery, and accessories, offering ongoing value and excitement.
9.5. Professional Development Resources
Provide resources such as legal books, online courses, or conference tickets that support their ongoing professional development and career advancement, showing your investment in their success.
10. Frequently Asked Questions (FAQ)
10.1. Can I Cash Out Any Gift Card?
Not all gift cards can be easily cashed out. Open-loop gift cards (Visa, Mastercard, American Express) are generally easier to convert to cash than closed-loop cards (store-specific).
10.2. What Percentage Of The Gift Card Value Will I Receive?
The percentage varies depending on the method and the retailer. Online platforms typically offer between 70% and 92%, while kiosks and pawn shops may offer 50% to 70%.
10.3. Is It Legal To Cash Out A Gift Card?
Yes, it is legal to cash out a gift card. However, some states have regulations regarding cash-back for low-balance cards.
10.4. How Long Does It Take To Cash Out A Gift Card?
The time varies. Kiosks offer instant cash, while online platforms may take a few days to a week for payment processing.
10.5. What Are The Fees Associated With Cashing Out A Gift Card?
Fees can include transaction fees from online platforms, commissions from pawn shops, or service fees from kiosks.
10.6. Can I Return A Gift Card For Cash At The Store?
Generally, no. Most retailers do not allow gift cards to be returned for cash unless required by state law for low-balance cards.
10.7. What Happens If My Gift Card Expires Before I Cash It Out?
If your gift card expires, it may no longer be valid. Check the terms and conditions for expiration dates and any potential fees.
10.8. Can I Cash Out A Partially Used Gift Card?
Yes, you can cash out a partially used gift card. The offer will be based on the remaining balance.
10.9. Is It Safe To Sell My Gift Card Online?
Selling online can be safe if you use reputable platforms and take precautions to protect your personal and financial information.
10.10. What Should I Do If I Suspect Fraud?
If you suspect fraud, report it to the platform or service you used, as well as to your local law enforcement agency.
Cashing out a gift card can be a practical solution when you need cash or prefer not to shop at a specific store. By understanding the various methods, considering the key factors, and taking steps to maximize value and avoid scams, you can make the most of your gift card. And, if you decide that a thoughtful gift is the way to go, visit lawyergift.com to explore our unique selection of gifts for lawyers.
Ready to find the perfect gift for the lawyer in your life? Explore our diverse categories, search by occasion, or contact us for personalized recommendations. Let lawyergift.com help you make a lasting impression with a thoughtful and unique gift. Visit lawyergift.com or contact us at Address: 3210 Wisconsin Ave NW, Washington, DC 20016, United States. Phone: +1 (202) 624-2500.
