Gift cards can be a quick and easy present for those who don't know what to buy and offer the recipient a chance to pick out something nice for themselves, but sometimes they can still miss the mark.
If you find yourself with a gift card you don't think you're going to use, experts say you have options.
Natasha Macmillan, director of everyday banking at Ratehub.ca, says we've all been in that situation where someone doesn't know you, but still wants to get you something and gives you a gift card for a store that you probably won't use.
If that’s the case, she said you have options.
"You might be able to use the gift card for a present for a friend or a family member. That will actually help you save money while using the gift card at the same time," she said.
Macmillan also said you can look to resell a card through a platform such as Facebook Marketplace, Kijiji or other websites that specialize in buying and reselling gift cards.
“You do have to be careful with some of the scams and things out there, but it's also helpful and that way you can get cash for the gift card or even exchange it for another gift card,” she said.
If you’re considering that option, she said to always ask for the cash or e-transfer before handing over the gift card.
According to Accenture’s 2024 Canadian holiday shopping survey, 64 per cent of consumers received gift cards last year, each of whom received four on average.
But despite being a popular choice, the report said four-in-10 recipients failed to redeem the full balance of the card from the holiday season last year. That resulted in an unspent total gift card balance of $136 on average per consumer.
The Accenture report noted 31 per cent didn’t use their gift card because it was exclusive to only a few brands or stores and 27 per cent could not find items to purchase.
If regifting or selling don't appeal to you, some charities will accept gift cards as a donation. The rules around what kind of gift card a charity might accept can vary and not all charities will accept all gift cards, but if they do, and depending on the amount, it could mean a charitable donation tax receipt that will help reduce your bill come tax time.
Mark Aston, executive director at Covenant House Toronto, which helps young people who are experiencing homelessness and trafficking, said the holidays can be tough for a young person who is isolated and does not have the support of family and friends that many of us rely on.
A gift card can help a young person buy themselves a treat that they would not otherwise be able to afford.
“Helping to normalize the experience around the holiday season is really helpful and impactful and to that end, gift cards can be really helpful,” Aston said.
He added that Covenant House is open to accepting all kinds of gift cards as donations that it can pass on to those in need to help with the cost of living and offer a little cheer.
Gift cards to grocers, drugstores and coffee shops can help with the day-to-day essentials, but he said gift cards for less obvious treats like movie tickets are also welcome.
“We're extremely appreciative of any gift card donations,” he said.
Meanwhile, Macmillan said donating a gift card that isn't going to be used can be a win-win.
"The gift card doesn't go to waste and you get that tax receipt in return, and it does help you save money at the end of the day," she said.
This report by The Canadian Press was first published Dec. 26, 2024.
Craig Wong, The Canadian Press
