Five Back Gift Card Insights – Making the Most of Your Spending
Gift cards offer convenience for shoppers and boost sales for merchants. But, many remain unredeemed, resulting in a loss of revenue.
Fortunately, there are ways to avoid letting your gift cards go unused. Consider the www fivebackgift com
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1. Check Your Balances
Credit cards and cash remain popular ways to pay for goods and services, but gift cards are increasingly important in consumers’ shopping toolboxes. Some people, however, don’t use the full amount of a gift card or forget about it altogether, leaving a single-digit balance that can be hard to cash in.
Luckily, there are a few simple strategies to help you keep track of and maximize your gift card balances, says Shelley Hunter, founder of Gift Card Girlfriend, a digital destination for insights on the gift card industry.
For starters, you should check your balance before you make a purchase. Most retailers provide information on how to do so, whether online or in-store, with a link or toll-free phone number, she says. Avoid using third-party apps or websites, which could be a security risk and might not always offer accurate balances.
You can also check your balance on your smartphone by scanning the QR code found on the back of most gift cards. This will redirect you to the retailer’s website, where you can see if your balance has changed since your last transaction. Alternatively, you can call the toll-free number on the back of your card to get an updated balance.
Finally, you can ask your favorite retailer to give you the remaining balance in cash if it is below a certain amount. For example, CVS offers cash back when a gift card is less than $200, though you’ll have to call first to find out how many forms of tender are allowed in a transaction.
If you’re still not interested in the store or restaurant whose gift card you have, consider repurposing it via donation or regifting. Donated cards are often sought by nonprofit organizations and can be auctioned off at fundraisers or used to buy supplies, Hunter says.
2. Reload Your Cards
If you’ve ever come across a gift card in your wallet that you know you won’t use, don’t just disregard or toss it. Instead, make sure to redeem it before its expiration date or give it to someone who will. “Repurposing gift cards, even if it’s not what the card’s original recipient had in mind, is better than letting them sit and collect dust,” Hunter says.
Many retailers offer buy one get one deals or other special offers on their gift cards, giving you the chance to maximize your dollar. Also keep an eye out for online services that can resell your unused gift cards or allow you to set alerts for specific cards that you want.
In addition to reselling, consider reloading your gift cards so you have them on hand for when you need something in the future. Whether it’s for the grocery store or gas station, or a favorite restaurant, having gift cards on hand is a great way to save time in the future.
As more shoppers use multiple forms of payment, gift cards are an increasingly popular option. Adding them to your merchant sales mix can help you engage your customers and boost revenue. To learn more about how to integrate gift cards into your payments platform, check out these tips for maximizing your business’s gift card sales. If you’re ready to give them a try, Square makes it super easy to order and customize your own custom gift cards. Get started today!
3. Take Advantage of Offers
When it comes to redeeming gift cards, it pays to play your cards right. Here are some tips that will help you maximize your value:
Using a gift card to purchase an item on sale is a great way to stretch the value of a purchase. “This can be especially beneficial for items that are marked down significantly, such as clearance merchandise,” says NerdWallet consumer savings expert Courtney Jespersen.
Another smart strategy is to take advantage of the fact that many retailers offer gift cards that are redeemable at sister stores in their portfolios. For example, a Gap gift card can be used at Old Navy and Banana Republic, while an Olive Garden or LongHorn Steakhouse gift card can be applied to meals at any Darden restaurant.
If you find that you have a gift card that isn’t going to be used, try selling it online. Sites like CardCash and Raise offer a variety of options, from cashing out the balance to swapping for another brand or retailer’s gift cards. Alternatively, you can donate your gift cards to charity or nonprofit organizations, which can be a tax-deductible expense.
For retailers, gift cards can be a powerful marketing tool that helps you reach new customers and increase sales. To get the most out of your gift cards, consider adding them to your rewards program and creating a marketing plan to drive engagement.
4. Make the Most of Your Rewards
Whether you’re earning points or cash back, credit card rewards are an effective way to reduce your spending and save money. Keeping track of your reward progress can help you maximize your savings and meet your financial goals.
If you’ve got a gift card to a store that you won’t be visiting any time soon, you might be able to get some extra value from it by regifting it to someone else. This can be especially helpful if the card has only a few dollars left on it, and you can often increase its value for the recipient using a service like CardCash or Raise.
Gift cards can be purchased in-person at many stores, including supermarkets and department stores, as well as online through the retailers’ websites. However, you can also purchase them from third-party companies that specialize in gift card reselling. Regardless of where you buy them, make sure to check out the terms and conditions of each site before making a purchase. Some reselling sites might not honor your rewards or may only give you a fraction of the card’s original value.
A growing number of consumers are taking advantage of the convenience and value of gift cards by purchasing them for themselves. In fact, nearly half of British consumers who own prepaid cards say they use them to reap the benefits of discounts and loyalty rewards. However, it’s important to keep in mind that purchasing gift cards for self-use can lead to overspending. If you’re trying to budget or save for a specific goal, overspending on gift cards can defeat your purpose and potentially hurt your financial situation. Moreover, carrying a balance that’s close to your credit limit can have a negative impact on your credit utilization ratio and your overall credit score.
5. Don’t Forget About Expired Cards
If you find a gift card at the bottom of your purse or in a dresser drawer, don’t just throw it away. Repurpose it instead via a donation, regifting to someone else, or purchasing something for yourself with it. Though it may not be what the gift giver intended, that’s still better than throwing away the card’s value altogether.
Another way to make sure you’re getting the most out of your card is to register it online. This could make it easier to find if the card is lost or stolen, and many cards also offer additional protections such as zero liability for unauthorized purchases or replacement cards.
When a card’s expiration date approaches, it’s also a good time to review recurring payments and services that are automatically charged to your credit or debit card. Keeping up with these can help you avoid late fees and maintain your account’s active status. Failed or missed payments can contribute to customer churn, so making changes now can keep you on track and prevent unnecessary charges in the future.
For merchants, a gift card can be an acquisition tool for new customers, especially if it’s a store-specific or brand-wide gift card. However, the average consumer will spend 20% more than what’s on their gift card when redeeming it, according to research from Mercator Advisory Group. That extra spending can add up for retailers and lead to additional sales. That’s why it’s important to promote gift cards in your marketing efforts, especially during the holidays.