Everything that has an advantage surely has a disadvantage. It is no surprise that as versatile and flexible as a gift card is, it also has its disadvantages. In my last blog post, I wrote about the advantages of gift cards. Here are some shocking disadvantages of gift cards;
1. Money can be wasted if the gift card isn’t used: For instance, you have a $100 worth of gift card and you want to purchase goods worth $90. The $10 left can be wasted if there’s nothing worth $10 in that particular store.
2. It could expire before redemption: Gift cards generally have a lifespan of 5 years before expiry. Unused gift cards can expire if they’re not redeemed before the expiry date.
3. Losing a gift card can be painful: Yes, losing a gift card is just like losing money. It hurts, especially when the card has not been redeemed or when you failed to keep the gift card number.
4. Closed-loop gift cards can limit purchasing power: Since the use of a closed-loop gift card is restricted to the issuing merchant only, it limits purchasing power.
5. A gift card might not be accepted if the purchase price is greater than the funds on the card: You can’t take a $100 gift card to purchase goods/services worth $250; it will be turned down.
Gift cards are precious assets, however, they have their drawbacks; from expiration to losing your gift cards and even to insufficient funds, both givers and receivers need to be aware of all of these.
Understanding these disadvantages will help you make informed decisions, so you can get the best value out of your gift cards.
Also Read: 6 Surprising Advantages of Gift Cards You Don’t Know About.
The best way to get value for your gift cards is by trading them as soon as possible, on the best trading app to avoid loss or expiration.
Download the Coast app now and start trading!
