What to do with those unwanted gift cards

By now, most of us have returned the holiday gifts that we didn't want, but I'm betting you still have gift cards lying around.

You may even have some from past Christmases.

The National Retail Federation estimates that $2 billion in gift cards went unredeemed in 2012, bringing the total since 2005 to $43 billion.

Another study showed that the average household had around $300 in gift cards sitting around.

Gift cards were as popular as ever this holiday season, remaining the No. 1 requested gift for the fifth season in a row, according to the federation. The average person spent $156 on them, and total sales approached $29 billion.

So now that they're in your wallet or desk drawer, or maybe tucked away in a holiday box, you should act before they are completely off your radar.

The easiest thing to do with unwanted cards is simply re-gift them.

The key is to identify a precise use -- a colleague's birthday, a relative's graduation, a teacher's gift basket.

Another option is to bring the card to a CVS pharmacy. By using a QR code and a smartphone, you can convert it into a CVS gift card.

The in-store service was launched in November by CVS and Plastic Jungle, one of the larger online gift card exchange companies. Plastic Jungle acts as a clearinghouse for the card sales, based on their value in its online marketplace.

The transaction comes with a price, as does any gift card sale or exchange.

"It's not a dollar-for-dollar exchange," said Margaret Mackenzie, CEO of Plastic Jungle. "We typically buy at around 80 percent of the face value of the card and then sell for 90 percent of the face value. We keep the margin, and the seller gets the liquidity."

On the website, unused gift cards can be exchanged for cards to Amazon.com, for frequent flier miles with United Airlines, or for virtual currency to buy online games, music, movies and other digital content through Zeevex.

Another option is to sell the card.

EBay, one of the largest movers of unwanted cards, is swimming in them now as the holiday returns season hits its stride.

The online auction service had almost 25,000 active listings for gift cards this week, from hundreds of retailers and restaurants.

Prices are driven by supply and demand but were generally 10 to 25 percent off the face value. For example, a $25 Kohl's card went for $21.56 this week, while an $80 card at Dick's Sporting Goods went for just $67.

Those who don't want to auction off their cards can try a number of online services that will either buy your cards for a percentage of the value or post them for sale.

To maximize your return, go to www.giftcardgranny.com. The site acts as an aggregator for six online services and shows you how much each will pay.

This week, Gift Card Granny showed that Wal-Mart and Target gift cards were selling for 94 or 93 cents on the dollar, respectively, at GiftCardRescue.com.

The aggregate site also shows the value if the same cards were converted to gift cards for Amazon.com, which is offering a 3 to 4 percent premium for the exchange.

A Wal-Mart gift card this week was selling for 98.7 percent of its value if exchanged for an Amazon gift card using Gift Card Rescue, while the Target gift card was going for 97.65 percent of its value.

Cards with less demand can go for far less. Gift Card Granny showed that a RadioShack gift card would sell for just 75 cents on the dollar at Card Pool, the highest buyer.

J.C. Penney gift cards would get only 68 cents on the dollar at Gift Card Zen. Again, add another 3 to 4 percent if you exchange for Amazon gift cards.

Those with lower-valued cards may want to consider Coupon Trade, sort of an eBay for gift cards. The service lets you list your gift card at the price you want and see whether it sells. Coupon Trade then pays to ship the card and takes a flat 10 percent commission and $1.75 listing fee.

Card Hub offers another listing service for gift cards that also ties in with a seller's Facebook friends, card-buying companies and local buyers, said John Kiernan, senior analyst at the company.

Most of the buyers are companies, such as GiftCards.com, eBay, Plastic Jungle and ABC Gift Cards, he said.

"We're like an exchange for gift cards," Kiernan said.

Card Hub does not charge for the service and will let you list gift cards partially used with unusual amounts and from lesser-known retailers that other gift card services may not accept.

Kiernan advises those who want to sell locally to meet in a public place and have the buyer call the toll-free number to check the balance before the transaction is complete.

Electronic gift cards -- generally codes used at an online retailer's checkout -- gained in popularity this holiday season and can also be sold through these services.

"E-gift cards picked up momentum this holiday season," Kiernan said. "You could order digital gift cards right from the stores."

It's easy to check the balance on a gift card. Just contact the merchant either online or through its toll-free number.

Most website exchanges will list the retailer's contact information for cardholders to check balances.

And the next time you need a gift card, consider buying from some of these sites as well.

You can save some money.

Teresa McUsic's column appears Saturdays.

TMcUsic@SavvyConsumer.net

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