Why you shouldn't buy a gift card

Short answer. A gift card is fine. People often buy one when they are stuck.
In a Bankrate survey of American adults, nearly a third admitted to giving one because they did not know what else to get. Below are 6 kinds of gift that land with almost anyone.

It is 5 pm on the 23rd. One name is left on the list, and the rack by the checkout has a card for every shop in town. It takes 10 seconds, it fits in an envelope, and nobody can say it was the wrong size.

Plenty of givers end up right there. In Bankrate's survey, 32% of those asked admitted to giving a gift card because they did not know what else to get.

Then the card goes in a drawer. The same survey of 2,373 American adults found 43% holding at least one unused gift card, voucher or store credit. The average amount left unspent has more than doubled across Bankrate's last 4 surveys. Somewhere in that drawer is a card with an awkward little balance on it, and it will outlive the stapler.

Why is a gift card a worse bet than it looks?

It goes in the drawer. Bankrate's survey found that 34% of American adults have lost money on a gift card, mostly by letting one expire or losing it. Nobody throws a gift card away; it just stops being thought about.

The shop can disappear. In the same survey, 12% said the shop closed before they used the card. When the craft chain Joann closed all its stores, it stopped taking gift cards months before the last ones shut. In the United Kingdom, Debenhams' administrators stopped accepting them 5 days before Christmas, as reported by Which?

The rules change at the border. How long a card lasts depends on where it was bought.

It can miss, and nobody says so. In Bankrate's survey, 23% had received a card for a place they did not like, and 24% for one that was hard to get to. Recipients are polite about it, so the giver never finds out. The FTC has also warned that thieves tamper with cards on open racks and drain the money once a card is loaded.

Price is not what makes a present land. The researchers Flynn and Adams found that how much recipients appreciated a gift did not track what it cost, even though givers expect it to. Chan and Mogilner found that gifts people experience, rather than simply own, do more for the relationship. That favors a gift that gets used over one that gets filed.

When is a gift card the right call?

Sometimes the card wins, and that is worth saying plainly.

• They asked for one. Gino and Flynn found that people appreciate the gifts they asked for more than ones they did not. In one study they liked money best of all.
• A teen who wants to choose. At that age, picking it out is half the fun.
• The shop they use every week. A card for the grocery store, coffee shop or bookstore they already visit gets spent.
• The last hour. A digital card sent on time beats a parcel that arrives after the party.

If one of those fits, buy the card and skip the rest of this page.

How do you pick in 10 seconds?

• They say they need nothing: Game night in a box
• They run on coffee: The coffee person
• They are always cold, or always reading: Cozy nights in
• They live at a desk or in the car: Desk and pocket upgrades
• They deserve a treat, but their skincare is a mystery: Small treats
• They are a parent or grandparent: Memories

Already know who it is for? Go straight to their list.

What are the home-run gifts?

Givi and Galak found that givers see a sentimental gift as all or nothing, a home run or a strikeout. So givers play it safe, while recipients often prefer the sentimental one. The 6 themes below go for the other kind of home run: things almost anyone is glad to open.

Still stuck?

The Secret Santa gift finder asks who the gift is for, then shows ideas one card at a time. For the office, the coworker gifts list keeps things friendly. For a swap party, try the white elephant list.

Is a gift card a good gift?

It is a good gift when someone asked for it, or when it is for a shop they use every week. Otherwise it is often the stuck choice. In Bankrate's survey, nearly a third admitted to giving one because they did not know what else to get.

What can you give instead of a gift card?

6 themes cover most people: a game for someone who needs nothing, a better cup for the coffee drinker, and something cozy for long evenings. Add a small upgrade for the desk or car, a little treat, and a way to keep photos close for parents and grandparents. Each theme has its own picks in the home-run gifts.

Do gift cards expire?

Some do. In the United States, a gift card must last at least 5 years, and inactivity fees are not allowed in the first year (CFPB). The United Kingdom sets no legal minimum, Ireland requires at least 5 years, and Germany allows 3 years by default. So check the card or the shop's terms before it goes in the drawer.

What happens to a gift card if the shop closes?

Often it stops working. Joann stopped accepting gift cards months before its last stores closed, and Debenhams' administrators stopped 5 days before Christmas. The CFPB warns that a card from a shop that goes under may not be redeemable. In Germany, the consumer group Verbraucherzentrale says holders usually get back far less than 5% when the issuer goes bust.

Is cash a better gift than a gift card?

For some people, yes. Gino and Flynn found that in one study, recipients appreciated money more than any gift they had asked for. Cash also works in any shop. A chosen gift still has an edge, since recipients often prefer a sentimental gift to one that merely matches their tastes (Givi and Galak).