Got a Gift Card You Can't Use? Here's What to Do With It

The winter holidays are now in the rearview mirror, and if the people in your life agreed with me that gift cards are great presents, you might now have a few hanging out in your wallet. In an ideal world, you'll be able to spend those at your favorite retailers.

But what if a well-meaning friend or family member got you a gift card for a business that has no locations close to you? Or they just plain missed the mark and you don't frequent that retailer at all? Here's how you can extract cash (or goodwill) from that gift card.

Use it online

If the gift card is for a retailer you like but that has no locations that are convenient for you, you might be able to use it online instead. One pitfall with this is that you might have to pay for shipping on whatever you buy. This isn't ideal, but if it ends up costing you a few dollars more than the gift card amount, that's likely not such a big hit to your personal finances.

Consider regifting or swapping it

Some people consider regifting to be the height of tacky, but don't be so quick to judge. There are miles of difference between finding a new home for a sweater that was picked out specifically for you (but isn't your taste -- oh well, they tried), and re-gifting a Starbucks gift card to your coffee-loving friend. Or you may have a friend or coworker who received a gift card they can't use, too, and may be willing to swap cards at the same face value. Ask around in your local network.

If you have a loved one with a birthday or other special occasion coming up, they might be delighted to receive your unusable gift card. Pick out a nice greeting card (or even better -- make one) to put it in, and you can make someone happy for a minimal (or no) hit to your checking account.

Resell it for cash

If all else fails and your gift card can't be used online and no one you know would be interested in receiving it as a gift (or a swap), you still have another option. A few years ago, I got a gift card for a movie theater chain that had no locations anywhere near where I live. I did some web searching and came up with the site CardCash.

CardCash allows you to sell unwanted gift cards and receive up to 92% of the value for them. You'll be paid by ACH deposit, PayPal, or even a check in the mail -- or you can swap an unwanted gift card for one you do want (CardCash says this option gives you the most bang for your buck). It's incredibly easy to fill in the details for a gift card and get an estimate of how much you can make from it. When I used this service, I was paid 80% of the value for my movie theater card -- not bad! So even if you have no options to use or give away a gift card to someone you know, you can still get value from it.

One caveat: Expiration dates and fees

There is one thing you've got to watch out for with gift cards. Ideally, you've got many months until the card expires or starts charging fees against the unused balance -- check the fine print on the back of the card (or call the 800 number listed there) to be sure. While you're at it, double-check the balance -- it wouldn't be good to regift a card whose balance has already started to be eaten up by maintenance fees.

Gift cards really can be a thoughtful present, but it does you no good to sit on one you can't actually use. Make one of the above moves to ensure the gift card goes to an appreciative new home -- and you end up money ahead.