Use Your Gift Cards the Right Way

Gift cards are a popular and convenient present, and usually a welcome one, as long as they don’t end up forgotten in a drawer or slowly drained by inactivity fees. Whether you receive a gift card for a birthday, through a rewards program, or “just because,” a little attention can help you make sure that money doesn’t slip through your fingers.

One of the most important steps is to read the fine print. While many gift cards no longer expire, that isn’t always guaranteed. Some bank- or credit card–issued gift cards include a “valid through” date for the card itself, even if the remaining balance can be transferred to a replacement card. Others, such as certain Visa virtual gift cards, may begin charging a monthly maintenance fee, often around $4.95, after 12 months of inactivity. Knowing the rules upfront helps you avoid surprise losses.

Another smart move is to deal with small remaining balances instead of letting them sit unused. In some states, retailers are required to redeem gift cards for cash once the balance drops below a certain amount. Even when it’s not required, some stores will offer cash redemption for low balances on their own branded cards. Charitable organizations also accept gift card donations, which can be a great way to turn a few leftover dollars into something meaningful.

It’s also wise to record and register your gift card right away to protect yourself from scams or loss. Many retailers, including Amazon, allow you to load gift card balances directly into your online account. Payment services like PayPal can also accept certain prepaid gift cards. Doing this eliminates the risk of misplacing a physical card and reduces the chance that someone else could steal the card number and use the funds.

Gift cards may seem simple, but a little planning goes a long way. By understanding the terms, using balances wisely, and securing the card early, you can make sure every dollar of that gift actually gets put to good use.