How to return, replace a lost or unwanted gift card

Many retailers give options; easiest one is to keep receipts

By Melody Warnick

The reason so many of us love gift cards -- they're a lot like cash -- is also the reason they can be hard to replace when they're stolen or lost. However, in most cases, there are steps you can take to ensure that you haven't just thrown away $50 if that gift card accidentally ends up in the trash.

An estimated $110 billion in gift cards were purchased during the 2012 holiday season, according to the research firm CEB TowerGroup, so chances are good that you're hanging on to one or two (or five or six). Also, you may not know precisely where some of them are. If your card is lost or stolen, most retailers (see "Major retailers 'gift card return and replacement policies" chart below) are sympathetic -- but only if you can prove that you actually purchased the card.

"The receipt is your first line of defense if you lose a card," says Kwame Kuadey, founder of GiftCardBlogger.com. "If you lose the receipt and lose the card, you're pretty much out of luck."

When your gift card goes astray
If you held on to your receipt -- or if the generous soul who gave you the gift card in the first place can produce one -- contact the retailer immediately. Most maintain toll-free numbers (available on the card itself or, since that's gone, on the store's website) staffed by customer service representatives who can cancel the card and work on issuing you a new one.

If it's a store card, you shouldn't have to pay for the replacement; similarly, American Express now offers to replace lost or stolen gift cards for free (if you have the original card number). With other bank-issued gift cards -- for instance, one co-branded with a Visa or MasterCard logo -- expect a replacement fee of $5 to $15.

No receipt? A few stores may offer a replacement over the phone if you have the gift card number. If you use the card to make an online purchase, your card data may be in your online account with the store, along with a record of any remaining balance. Or if you registered the card online, a service available with retailers such as Starbucks, you may be able to replace your missing card. 

Returning a gift card
If you have that receipt and just want a refund, major retailers offer a mixed bag. Some will let you return unused cards and get payment back in the same form as it was originally offered.  Others say you're out of luck, with the exception of the minor amount of relief offered by state laws. A growing number of states -- including California, Colorado, Maine, Montana, New Jersey, Oregon, Rhode Island and Virginia -- require retailers to return small-dollar remnants to consumers in cash. California is the most generous, requiring retailers to give balances of less than $10 back to consumers in cash. Most others set the bar at $5, according to research from the National Conference of State Legislators. 

Your other options include trying to get reimbursement from PayPal or your credit card company if you ordered a card online and it never arrived, or replacing a gift card stolen from your home through your homeowner's or renter's insurance coverage. (Check your policy for coverage details.)

Without any of the above, better luck next time.

Prevention and protection
Even with a receipt in hand, it's a hassle to cancel and then replace a lost or stolen gift card. Here's how to keep your cards safer now and how some of these steps can make your life easier if a card does go missing:

1. Keep records of your gift card info in Your Wallet Recovery Kit. The Kit -- a series of forms on which you can record information about your gift cards, as well as your credit cards, debit cards and anything else in your wallet -- was created by CreditCards.com and is meant to help you be prepared in case of disaster. It lays out what information you need to write down and store away now. It even helps you find who to contact after your wallet goes missing -- and what to say when you speak with them.   
2. Track your card in a virtual wallet. At sites such as PlasticJungle.com, you can create a free online account, then record gift card numbers and PINs. Plus, you earn extra protection from the site itself, since PlasticJungle.com will contact a retailer on your behalf to replace a lost card that's registered with the site.
3. Register your card with the retailer. Starbucks cardholders who register their cards at Starbucks.com get automatic balance protection and hassle-free card replacement in case of loss or theft. Also, when they use the card in the store after registering, they earn perks such as free refills on drip coffee or free syrups.
4. Shop online. To make a purchase online, you only need the gift card number, which could help if you misplaced the actual plastic. Walmart even allows customers to input gift card numbers on its website and make online purchases later.
5. Use your card quickly. One survey estimates that one-third of gift cards still haven't been spent six months after they're received. "People hold on to these cards and forget where they put them," says Kuadey. "Using the card immediately not only prevents it from getting lost, but protects you if the company goes bankrupt."
6. Safeguard your card from fraud. "A gift card looks exactly the same whether it has a zero balance or $100 on it," says Tina Henson, founder of PlasticJungle.com. Even if you have the card itself, someone could steal your balance. High-tech fraudsters scan or copy card numbers in stores, then spend the money online as soon as the card is activated, leaving you with a worthless piece of plastic. When you purchase a gift card, watch out for scratches or signs of tampering. Or avoid the problem altogether by purchasing e-certificates from online retailers such as Amazon.com. 

See related: Your Wallet Recovery Kit

Updated: December 24, 2012

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