Fixing a Global Problem: Why Up to 30% of Gift Cards are Never Redeemed
Sure, prepaid gift cards have become one of the most popular gift-giving items these days, but the fact that nearly 30% of them are unused is a problem that can no longer be ignored. This is especially concerning given the fact that in 2018, consumers loaded over $300 BILLION on prepaid cards. Here are the top 3 reasons why BILLIONS of dollars go unused on these cards each year.
Excessive Gift Card Fee Structure
In addition to the upfront fee that is charged when you activate a prepaid gift card, you might be surprised to know that it also has an expiring balance. This means that your unused gift card gets charged an ongoing service fee by the bank. Eventually, the entire amount of the prepaid gift card could get swallowed up by fees.
Many folks like to use part of their card on one purchase and save the remainder to use later on. Imagine their disappointment when they go to pay for that special item only to find out they don’t have enough to cover it.
Lack of Loss or Fraud Protection
Unlike a regular credit card, there is no protection for your prepaid gift card from the credit card companies. If the card is lost or stolen, you have to pay a fee to get a new one issued. That assumes, of course, that the stolen card wasn’t used by someone else. You will also find that you will not have much luck disputing fraudulent charges as you have to take that up with the merchant instead of the credit card company.
Prepaid Cards Are Not Accepted Everywhere
You may have already noticed that not all merchants can or will accept prepaid gift cards. Even with merchants that do accept them, you may have trouble actually using them for a variety of reasons. If you try to use the prepaid gift card to pay for part of the purchase, the merchant typically gets an “insufficient funds” response when processing the card. Also, restaurants and gas stations will actually pre-authorize the card for more than the actual bill, which may also exceed your available funds.
A Better Solution with Prepaid2Cash
With all the fees and extra hassle, it’s easy to see why there are so many unclaimed prepaid gift cards each year. Wouldn’t it be better if there was an easy way to just trade in that unused gift card for cash? Then you could use that cash at stores and restaurants or even pay your bills.
Well, now you can with Prepaid2Cash. With their easy to use app, you can quickly convert that unused prepaid card to cash in as little as 2 to 3 business days. Visit them online at www.prepaid2cash.com or download their app for your Apple or Android device.