Gift cards are a popular gift despite the fact that many go un-redeemed. Most of the time the cards don’t get used because consumers forget about them or lose the card. Stores going out of business are another problem, and a court ruling isn’t giving consumers much hope that their gift card is worth anything when a store closes.
There are more than 17.7 million Borders gift cards that were never used and a judge decided those customers will not get a refund. There are many reasons for the decision including issues over paperwork and whether it was filed in a timely manner.
The value of the unused cards is estimated at over $210 million. That’s a lot of money that consumers invested in a defunct company. It raises questions about whether a gift card is really the best gift. It’s a debate we have every holiday season as analysts predict which stores may be defunct within six months.
I still think gift cards are a good idea if you have no others. If you get one and don’t feel you’ll use it, then sell it. There are several sites like Gift Card Granny and Plastic Jungle that allow you to sell and buy cards at a discount. As soon as you hear about a store closing or liquidating its goods, sell fast so you don’t lose your money.