Redeem Gift Cards for Cash

From GiftCardNexus

Consumers have a few options to convert gift cards into cash either through their own initiative or aided by state laws. Merchants are not inclined to offer cash redemption unless required by law, because money exchanged for gift cards is like an interest free loan for the merchants. They don't have to pay back the loan until the gift card is redeemed for goods and services. Here are three options a consumer have for converting gift cards into cash.

Contents 1 Sell Gift Card for Cash 2 Convert Gift Card to Credit Card 3 States that Permit Gift Card Cash Redemption 3.1 California 3.2 Maine 3.3 Massachusetts 3.4 Montana 3.5 Washington 4 References

[edit] Sell Gift Card for Cash

There are several websites that offer services to auction, sell, purchase, or trade gift cards for cash. One of the least expensive method is to post an ad on Craigslist.org to sell the gift card at a discount. eBay is another popular website to auction off gift cards. Also refer to the How to Sell Gift Cards on eBay article for additional info. This website offers information on gift card resale value for hundreds of merchants. Discover if the resale value is worth the hassle of selling unwanted gift cards.

[edit] Convert Gift Card to Credit Card

The strategy is to purchase merchandise with a gift card, return the merchandise for refund at a later time, and request the refund onto a credit card. Use the refunded amount to pay off existing balance or make purchases at establishments where the credit card is accepted. Some merchants will not refund to a credit card and will offer store or merchandise credit instead. It is best to inquire the merchant if gift card purchases can be refunded to a credit card.

[edit] States that Permit Gift Card Cash Redemption

Only a handful of states have laws that allow consumers to redeem gift cards from merchants and vary from state to state. These laws do not provide for full redemption, but only on the last remaining amount with some additional stipulations.

[edit] California

Gift cards with less than $10 remaining are redeemable for cash ^[1], except for the following conditions:

• Award, loyalty, and promotional gift cards given without exchange of moneys, such as coupons.
• Cards donated or sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale.
• Gift certificates that are issued for perishable food products.
• Gift cards usable with multiple sellers of goods or services, such as bank or mall gift cards.

[edit] Maine

Cards with $5 or less after redemption may be redeemed in cash^[2]. However, cash redemption does not apply for the following types of cards:

• Prepaid phone cards.
• Pre-funded bank cards.
• Promotional gift cards given without exchange of moneys, such as coupons.
• Merchandise or store credit.

[edit] Massachusetts

Non-reloadable gift certificates that has been redeemed for 90 percent of its value or more, the consumer have the option to redeem the remaining value in cash. Reloadable gift certificates with a remaining balance of $5 or less can be redeemed for cash. In Massachusetts, the term gift certificates applies to physical and electronic gift cards and merchandise store credit^[3]. However, cash redemption does not apply for prepaid phone cards.

[edit] Montana

If original value of gift card was more than $5, and the remaining value is less than $5, it can be redeemed for cash.^[4] Cash redemption does not apply to the following types of gift cards:

• Prepaid phone cards.
• Promotional gift cards given without exchange of moneys, such as coupons.
• Gift cards usable with multiple sellers of goods or services, such as bank or mall gift cards.
• Gift cards donated by a store without taking a tax deduction.

[edit] Washington

Cards with less than $5 remaining on the gift card are redeemable for cash.^[5], except for the following types of gift cards:

• Bank issued gift cards.
• Loyalty and awards programs gift cards and certificates.
• Gift cards and certificates for goods or services provided by artistic and cultural organizations in WA state.
• Gift cards and certificates used by charities for fundraising.

[edit] References