Everything You Need To Know Regarding Gift Card Redemption
Gift cards have been around for decades now – yet they’re still on an upward trend. In fact, the global gift card market is projected to reach over $3 trillion by 2030 – a staggering 213.93% increase from 2023.
However, along with this growth comes an equally concerning problem: an increasing number of gift cards are left unredeemed. A remarkable 47% of American adults currently hold unredeemed gift cards, totaling an estimated $23 billion in unused value.
Why is the gift card redemption rate so low? What are the reasons behind this? There are few things that come to mind:
- Many individuals receive gift cards but aren’t fully aware of how to redeem them, especially for online transactions or with specific retailers.
- Physical cards are easy to lose or forget, and even digital cards can be overlooked if not properly saved or tracked.
- The gift cards expired. Woops!
Understanding How Gift Card Redemption Works
Gift cards are often perceived as a safe, practical choice for any occasion, but the unredeemed numbers are sure to raise some eyebrows.
We will provide a comprehensive overview of gift card redemption, covering how the process works, common issues people run into, and tips to ensure recipients can maximize the value of their gift cards.
Whether you’re gifting or receiving, understanding the redemption process is key to preventing gift cards from going unused.
Online Redemption
Most gift cards, especially those from e-commerce platforms or digital retailers, can be redeemed through an online checkout process. Recipients simply need to enter the card’s code or PIN during payment.
In-Store Redemption
For physical gift cards, recipients typically present the card at the point of sale in a retail store. Some digital gift cards also offer QR codes or barcodes that can be scanned directly from a smartphone.
Mobile Redemption
Many digital gift cards can now be added to mobile wallets, such as Apple Pay or Google Pay, allowing recipients to redeem them using their smartphones for both online and in-store purchases.
This provides an extra layer of convenience, enabling quick and easy access to the card.
Common Issues During Gift Card Redemption
Despite the convenience gift cards offer, recipients can run into several issues:
Invalid Codes or PINs
If a gift card code is entered incorrectly or has already been redeemed, recipients may face delays or frustration when trying to use it.
Retailer-Specific Restrictions
Some gift cards come with specific terms that limit their use to particular items or stores, which can confuse recipients.
Currency Conversions
International recipients sometimes face difficulties with currency conversions or restrictions when trying to redeem cards for global brands.
Addressing These Common Issues of Gift Card Redemption
To help mitigate these challenges that recipients may face during gift card redemption, many websites and platforms have introduced features that aim to enhance the user experience:
Tracking and Managing Gift Cards
Many retailers and gift card platforms now offer tools that make it easier for both recipients and senders to track and manage their gift cards.
These features often include mobile apps and websites where recipients can quickly check their remaining balance, while senders can monitor the delivery status of the gift card.
By using these tools, recipients are less likely to forget or lose their gift cards, ensuring they get the full value.
Meanwhile, senders gain peace of mind knowing the cards have been delivered successfully, leading to a smoother and more efficient gift card experience for all parties involved.
Clear Terms & Choice Gift Cards
To help avoid confusion, many platforms now provide clear and detailed descriptions of each gift card’s terms and conditions.
This transparency ensures that recipients know exactly where, when, and how they can use their cards, preventing misunderstandings that could otherwise spoil the experience.
Some platforms offer ‘choice gift cards’, which allows users to pick their preferred retailer from a list of brands. This flexibility enables recipients to choose brands they are familiar with redeeming, which helps avoid any friction in the gift card redemption experience.
Automatic Currency Conversions & International Gift Cards
For international users, some platforms have introduced automatic currency conversion features, displaying the gift card’s value in the recipient’s local currency.
This not only simplifies the redemption process but also provides clarity on how much the gift card is worth, reducing the risk of misunderstandings or unexpected fees.
Additionally, platforms offering international gift cards cater to recipients across different regions, ensuring they can redeem their cards with global brands or retailers that operate in their specific market. This increases the card’s usability and appeal for recipients outside the card’s country of origin.
How To Redeem A Gift Card Online With Toasty
Toasty is an all-in-one platform that streamlines sending and receiving gift cards. When you receive a gift card through Toasty, you’ll get a redemption link via email. Simply click the link, select your preferred brand and you will get direct access to the gift card.
One of the key benefits of Toasty is that, once redeemed, the gift cards have no expiration date, allowing recipients to enjoy a flexible gift card redemption experience without any time constraints.
As a sender, Toasty also offers robust tracking and management features, allowing you to monitor the delivery status of all sent gift cards.
This ensures they reach the recipient as intended, while giving you peace of mind that your gifts are being properly handled.
Key Takeaways Regarding Gift Card Redemption
As the global gift card market continues to grow, so too does the issue of unredeemed cards, which now amount to billions of dollars in unused value.
Understanding the causes of unredeemed gift cards—whether it’s unfamiliarity with redemption processes, misplacing cards, or expiration dates—is key to addressing this challenge.
Therefore, it’s essential for both recipients and senders to be informed and make use of available tools that simplify the redemption process.
From tracking balances to automatic currency conversions and clear terms, modern platforms like Toasty are making it easier than ever to redeem gift cards smoothly and without hassle.
Conclusion: Maximizing the Value of Gift Cards
By embracing these innovations, organizations can ensure that gift cards are not only convenient but also fully utilized, providing real value and satisfaction for everyone involved.
Whether it’s for personal use, employee rewards, or customer incentives, staying informed about gift card redemption is the best way to avoid leaving money on the table!
Get started with Toasty, where gift card redemption is done with the click of a button!
Toasty is completely free to use. 100% of your gift card reward budget goes to rewards—not fees!
