Received a gift card this holiday season? Here’s how to maximize it.

Illustration of a gift card wrapped in a red bow

One-third of Americans have lost money on a gift card by letting it expire, losing the card or seeing the retailer go out of business

(Image credit: musmus culus / Getty Images)

For both the giver and the recipient, a gift card can seem like the perfect present. Neither party has to worry about whether or not their pick is well-received; the beauty of a gift card is that it’s up to the recipient what they procure with the funds.

The problem? All too often, gift cards end up going unused, wasting both people's money. In fact, "over one-third of Americans have lost money on a gift card by letting it expire (20%), losing the card (17%) or seeing a retailer go out of business before they could redeem a card (12%)," said The Wall Street Journal, citing research by Bankrate in 2024.

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Read up on the fine print

First things first: Check to see whether you have to use your funds by a certain date. "Many cards never expire, but check the packaging or email for confirmation of this," said Investopedia. Note that while "many gift cards, especially bank or credit card-issued cards, have a 'valid thru' date," this marks when the card itself expires, "but not necessarily the balance on it," said the Journal.

Another thing this date may indicate is when the card will start to charge fees for nonactivity. For instance, a Visa Virtual Gift Card "may begin charging a monthly $4.95 maintenance fee after 12 months of inactivity, depending on state laws," which can quickly eat into the card's total balance, said the Journal.

Keep tabs on your balance and fully use it up

Have just a little bit left on your card after making an initial purchase with it? Do not let that money go to waste. You can "keep it on hand for future purchases," or "if you don’t foresee yourself using the card, consider reloading it (if possible) and giving it to someone else for a birthday, holiday or celebration," said Consumer Reports.

Another option, if you have only a small balance still on your card, is to ask for the remainder in cash. Some states "have certain gift card laws that allow gift card holders with an outstanding balance under a certain amount — say, for example, $10 — to just redeem them for cash with the actual retailer," said CNBC Select. You might also consider donating your remaining funds to a nonprofit collecting gift card donations.

Be proactive about avoiding potential scams

If you do not plan to use your gift card immediately, "you should record and register your card," such as by loading your balance onto your account, said the Journal. "This can help you avoid fraud and increase the likelihood you can still use funds if you lose the card."

Finally, be cautious when checking your balance or attempting to resell your gift card, especially through third parties. "They could potentially lead to theft or scams," said Consumer Reports.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.