Find out if your state is among the lucky ones!
You Can Redeem Gift-Card Balances for Cash in These 11 States
Updated on Dec. 04, 2024
Getting a gift card for your favorite store or website is always a welcome treat. But receiving gift cards can also be annoying in some ways—like when you don’t use the entire balance and end up with just a few dollars. At that point, you’re left with the eternal conundrum every gift-card user has faced at some point: Let that remaining cash go to waste … or buy something else and inevitably spend more than you’d planned. Like we said, annoying!
Of course, this shouldn’t stop you from using your gift card in the first place. Approximately 43% of American adults currently have unused gift cards, according to recent research from Capital One, and the total value of those unspent funds comes in at just around $23 billion! So, yes, use those gift cards … but be smart about it. One way to do that? Know that in certain U.S. states and territories, you can redeem your unused gift-card funds for cash. Yes, you read that right—you can turn those leftover balances into cold, hard cash.
We checked the local laws and civil codes across the country to learn where this applies. Read on to find out if your state is on the list so you know exactly what to do with those gift-card balances after the holidays.
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Which states let you redeem gift-card balances for cash?
As of today, there are 11 states and one U.S. territory that allow you to turn your gift-card balances into essentially a refund for cash. And it doesn’t matter where the gift card is from; these rules cover all gift cards redeemed in the following states. Here are the details for each:
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California: Any gift card worth less than $10 is redeemable in cash.
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Colorado: Any gift card worth less than $5 is redeemable in cash.
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Connecticut: Any gift card worth less than $5 is redeemable in cash.
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Maine: If a gift certificate was originally for more than $5 but has less than $5 remaining on it, it can be redeemed for cash.
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Massachusetts: You can redeem a gift card for cash if you’ve spent at least 90% of its value.
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Montana: If a gift certificate was originally for more than $5 but has less than $5 remaining on it, it can be redeemed for cash.
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New Jersey: Any gift card worth less than $5 is redeemable in cash.
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Oregon: Any gift card worth less than $5 is redeemable in cash.
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Puerto Rico: Any gift card worth less than $5 is redeemable in cash.
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Rhode Island: Any gift card worth less than $1 is redeemable in cash.
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Vermont: Any gift card worth less than $1 is redeemable in cash. A gift certificate can also be redeemed for its remaining value in cash if the certificate has expired.
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Washington: Any gift card worth less than $5 is redeemable in cash. However, in 2024, a bill was proposed that would increase this amount to $50.
What else can you do with gift-card balances?
If you don’t live in one of those 12 places, don’t despair. There are a number of other things you can do with a gift-card balance. Websites like Raise, CardCash and GiftCash are all marketplaces where people can sell their unused gift cards for cash. And charitable organizations like St. Jude Children’s Research Hospital and Gift Cards 4 Change allow you to donate your gift-card balances to worthy causes.
You can also get creative with your unused balance. If you have a gift card for, say, $48, you can pay an extra $2 to turn it into a $50 gift card and then regift the card for an upcoming birthday present. Or if you’re about to leave a store with a small balance on your gift card, you can hand it to the next person in line to use it on their purchase. Hey, it’s always nice to spread some kindness, right?
The bottom line on gift cards
Whenever you can, try to make gift cards work in your favor. Whether you redeem the balance for cash, regift it or sell it on an online marketplace, do whatever you can to avoid letting that credit go to waste!
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Sources:
- Capital One Shopping: “Gift Card Statistics”
- Find Law: “California Code, Civil Code – CIV § 1749.5”
- Lexology: “New Colorado consumer protection law requires redemption of gift cards with a cash value of $5 or less”
- State of Connecticut Department of Consumer Protection: “Gift Certificates and Gift Cards”
- Maine State Legislature: “Expiration of Gift Certificates & Gift Cards”
- The 193rd General Court of the Commonwealth of Massachusetts, Section 5D
- Montana Department of Justice: “In Montana, Gift Cards Never Expire”
- Justicia: “2023 New Jersey Revised Statutes, Title 56 – Trade Names, Trade-Marks and Unfair Trade Practices, Section 56:8-110 – Gift certificate, card, validity, terms, required; definitions”
- Oregon Department of Justice Consumer Protection: “Gift Cards”
- Gobierno de Puerto Rico
- Rhode Island General Assembly: “Relating to Commercial Law—General Regulatory Provisions—Unfair Sales Practices”
- Vermont General Assembly: “The Vermont Statutes Online: Title 8: Banking and Insurance, Chapter 81: Gift Certificates”
- Washington State Legislature: “Chapter 19.240 RCW, Gift Certificates”
