John S Kiernan
Gift cards are supposed to make gift giving simpler, reducing the need to worry about the recipient’s tastes and what specific items he or she might already have. But not all gift cards are created equal which might help explain why nearly $1 billion in value went unused in 2015 despite gift cards being the most popular type of present for the 12th consecutive year.
So, in the interest of helping you find the best gift cards for any occasion – whether a birthday, holiday, graduation, etc. – we compared the 50 most popular options across five major categories:
| Gift Card | Wallet Hub Score | Gift Card Popularity Rank | Shipping Fee | Average Buyer Discount | Average Resell Value($100 Gift Card) | Retailer Rating(out of 5) |
|---|---|---|---|---|---|---|
| Amazon Gift Card | 55 | 1 | $0.00 | 1.60% | $70.00 | 3.13 |
| American Airlines Gift Card | 40 | 47 | $0.00 | 2.22% | $83.44 | N/A |
| American Express Gift Card | 35 | 4 | $5.95 | N/A | N/A | 2.53 |
| Apple Store Gift Card | 45 | 45 | $0.00 | 2.47% | $83.79 | 2.33 |
| Applebees Gift Card | 40 | 38 | $1.95 | 10.02% | $72.65 | 3.03 |
| Best Buy Gift Card | 50 | 14 | $0.00 | 2.75% | $86.91 | 1.87 |
| Cabelas Gift Card | 45 | 41 | $0.00 | 13.62% | $74.92 | 1.95 |
| Chick-Fil-A Gift Card | 55 | 27 | $0.00 | 5.00% | $76.00 | 4.55 |
| Chipotle Gift Card | 35 | 31 | $0.00 | 3.68% | $78.07 | 4.10 |
| Cinemark Gift Card | 20 | 42 | $1.95 | 4.27% | $69.00 | N/A |
| Costco Gift Card | 35 | 34 | $0.00 | N/A | $84.17 | 1.93 |
| Disney Gift Card | 75 | 11 | $0.00 | 18.97% | $78.91 | 2.02 |
| Dunkin Donuts Gift Card | 35 | 20 | $1.95 | 4.70% | $55.30 | 4.27 |
| eBay Gift Card | 55 | 8 | $0.00 | 0.78% | $80.00 | 2.05 |
| Etsy Gift Card | 20 | 23 | $0.00 | N/A | N/A | 2.06 |
| Fandango Gift Card | 50 | 15 | $0.00 | 12.10% | $65.65 | 0.98 |
| Forever 21 Gift Card | 35 | 48 | $0.00 | 9.8% | $70.06 | 1.55 |
| Gamestop Gift Card | 45 | 18 | $0.00 | 6.91% | $79.49 | 1.67 |
| Google Play Gift Card | 55 | 9 | $0.00 | 6.99% | $71.50 | 2.38 |
| H&M Gift Card | 50 | 50 | $0.00 | 18.02% | $61.38 | 2.04 |
| Hobby Lobby Gift Card | 15 | 44 | $1.00 | 1.77% | N/A | 2.79 |
| Home Depot Gift Card | 50 | 13 | $0.00 | 2.49% | $82.75 | 1.88 |
| Ikea Gift Card | 40 | 22 | $0.00 | 4.64% | $76.81 | 1.82 |
| iTunes Gift Card | 70 | 5 | $0.00 | 11.24% | $72.50 | 2.60 |
| JCPenny Gift Card | 35 | 39 | $0.00 | 5.07% | $71.22 | 1.55 |
| Kohl's Gift Card | 35 | 26 | $0.00 | 3.70% | $75.31 | 1.62 |
| Lowe's Gift Card | 45 | 17 | $0.00 | 3.55% | $81.42 | 1.78 |
| Macy's Gift Card | 40 | 25 | $0.00 | 4.42% | $77.98 | 1.73 |
| MasterCard Gift Card | 30 | 16 | $0.00 | N/A | N/A | 3.43 |
| McDonald's Gift Card | 45 | 19 | $0.00 | 3.45% | $77.97 | 2.45 |
| Michaels Gift Card | 25 | 49 | $1.95 | N/A | $76.44 | 1.33 |
| Netflix Gift Card | 50 | 12 | $0.00 | 1.88% | $84.45 | 2.56 |
| Nike Gift Card | 45 | 28 | $0.00 | 7.83% | v78.79 | 2.24 |
| Nordstrom Gift Card | 40 | 30 | $0.00 | 4.44% | $78.50 | 2.37 |
| Old Navy Gift Card | 60 | 46 | $0.00 | 11.78% | $83.21 | 2.24 |
| Olive Garden Gift Card | 40 | 21 | $1.95 | 4.42% | $71.94 | 3.00 |
| Red Lobster Gift Card | 45 | 33 | $0.00 | 8.25% | $82.73 | 4.03 |
| Rei Gift Card | 60 | 29 | $0.00 | 10.20% | $81.43 | 2.47 |
| Sephora Gift Card | 60 | 10 | $0.00 | 3.83% | $80.79 | 2.76 |
| Shell Gift Card | 15 | 43 | $0.00 | N/A | N/A | 2.34 |
| Starbucks Gift Card | 55 | 6 | $0.00 | 6.16% | $63.06 | 3.94 |
| Subway Gift Card | 60 | 24 | $0.00 | 5.98% | $80.36 | 3.02 |
| T.J. Maxx Gift Card | 35 | 40 | $0.00 | 5.77% | $72.25 | 2.88 |
| Taco Bells Gift Card | 45 | 32 | $0.00 | 11.40% | $72.06 | 3.38 |
| Target Gift Card | 65 | 7 | $0.00 | 6.00% | $81.44 | 2.88 |
| Texas Roadhouse Gift Card | 50 | 36 | $0.00 | 12.70% | $76.25 | 1.96 |
| Ticketmaster Gift Card | 40 | 35 | $0.00 | 5.00% | $78.25 | 1.20 |
| Visa Gift Card | 65 | 2 | $0.00 | 28.71% | N/A | N/A |
| Walmart Gift Card | 60 | 3 | $0.00 | 1.70% | $87.43 | 2.04 |
| Whole Foods Gift Card | 50 | 37 | $0.00 | 3.75% | $80.95 | 3.83 |
There are a handful of things we can count on every holiday season:
They’re everywhere this time of year, and for good reason: people generally love them.
But you don’t want yours to be just one gift card among many received by your intended recipient(s) this year. You’d probably prefer it to be enjoyed rather than forgotten in a drawer full of clutter. And you certainly want to get a good deal because who doesn’t?
Given that your gift card strategy can make or break the holiday season, particularly the budget part, we compiled a list of 10 great tips for gift card success. You can find them below. Shop wisely!
1. Look For A Discount. You might assume that sales and savings don’t apply to the gift card market, since gift cards are more like currency than retail products with traditional product margins. That’s not the case, however, as the best gift cards can all be bought for less than face value. You can learn where to look for deals from our article on the best gift card exchanges:
https://wallethub.com/edu/best-gift-card-exchange/27135/.
2. Avoid Card-Network Gift Cards. Gift cards from Visa, Mastercard and Discover might seem like they’re as good as cash, since they can be used anywhere, but they’re actually quite inferior. While retailers make money immediately when one of their gift cards gets purchased, these card network gift cards make money from fees. So if you want the versatility of cash, why not just use cash instead? It will certainly be cheaper. That’s why we didn’t include any card network gift cards in our list of the year’s best gift cards.
3. Don’t Confuse Gift Cards & Prepaid Cards. Despite often being displayed next to each other in stores, gift cards and prepaid cards are very different animals. Gift cards are designed to be used only until the original balance is gone. Prepaid cards, on the other hand, are reloadable and designed to serve the same purpose as a checking account with a debit card.
Prepaid cards also have a lot of different fees associated with them. So, giving one to someone instead of a gift card could result in the recipient not getting as much value as you intended. In fact, the average prepaid card has nine separate fees, according to our latest Prepaid Card Report, and the wrong prepaid card could cost an individual up to $311 per year if used incorrectly.
4. Beware Loyalty Cards. A loophole in the law allows non-reloadable prepaid cards (aka gift cards) that are received through a loyalty, award or promotional program to expire with no restriction. For context, normal gift cards cannot expire until five years from the date of issuance. So, it’s important to verify that you are indeed buying/receiving actual gift cards this holiday season and to read any applicable fine print.
5. Resale Is Always An Option. If you don’t end up using a particular gift card or the recipient doesn’t like it, you’re not out of luck. You can sell it on a gift card exchange or simply swap gift cards with a friend or family member. To learn more about these options, check out our editors’ picks for the year’s best gift card exchanges:
https://wallethub.com/edu/best-gift-card-exchange/27135/.
6. When In Doubt, Just Give Cash. Cold, hard cash might seem a bit less personal than a gift card, but it completely eliminates guess work from the equation and is the most versatile gift anyone can give. Plus, you might be able to give your recipient more value without shipping fees or shopping trips to worry about.
7. Tap Into Unredeemed Value. Have you contributed to the billions of dollars in gift cards that have gone unredeemed in recent years? Check your drawers and find out. Any gift card from the past five years is most likely still good.You have three basic options when it comes to unlocking the value of unused gift cards:
8. Buy Gift Cards With Rewards. Most credit card rewards programs allow you to redeem your points/miles for gift cards from a wide variety of major retailers. In many cases, you can garner more value from this type of redemption strategy than redeeming for cash. For example, under Citibank’s rewards program, you need 10,000 ThankYou points to get $50 in cash back, whereas you only need 5,000 points (50% fewer) for a $50 gift card.
9. E-Gift Cards Are Great In A Time Crunch. E-gift cards have been gaining traction in recent years, and increased mobile functionality stands to foster greater use of such products this holiday season. That’s good news for time crunched shoppers who want to avoid the shipping fees that many major retailers charge for physical gift cards ordered online.
“E-cards make redemption easier in terms of logistics, time, and salience. Once you enter the card number to your account the money is there waiting to be used,” said Eyelet Sneezy associate professor of marketing in the University of California, San Diego’s Rady School of Management. “In short, this is one domain where I expect digital to provide consumers great value.”
10. Avoid Using Gift Cards As An Excuse To Overspend. When redeeming gift cards, two-thirds of consumers spend more than their cards’ face value, according to Consumer Reports. This is likely due to the same psychological factor that leads consumers to spend more with credit cards than cash: the money somehow seems less real.
While gift cards can be quite useful in subsidizing the cost of large purchases, you should be especially cognizant of your spending when using a gift card, so as to avoid unnecessary expenses.
| Gift Card | 2018 Popularity Rank | Change from 2017 Rank | Change from 2016 Rank | Change from 2015 Rank | Change from 2014 Rank |
|---|---|---|---|---|---|
| Amazon Gift Card | 1 | - | - | up 1 | up 1 |
| Visa Gift Card | 2 | down 1 | - | down 1 | down 1 |
| Walmart Gift Card | 3 | - | up 2 | up 2 | up 3 |
| American Express Gift Card | 4 | - | down 1 | down 1 | - |
| iTunes Gift Card | 5 | down 1 | down 1 | down 1 | down 2 |
| Starbucks Gift Card | 6 | - | - | up 1 | up 4 |
| Target Gift Card | 7 | down 1 | - | down 1 | - |
| eBay Gift Card | 8 | up 2 | up 3 | up 1 | up 1 |
| Google Play Gift Card | 9 | up 3 | up 3 | up 1 | down 1 |
| Sephora Gift Card | 10 | down 1 | - | up 6 | up 4 |
| Disney Gift Card | 11 | down 3 | up 2 | up 2 | up 5 |
| Netflix Gift Card | 12 | - | down 4 | down 4 | down 7 |
| Home Depot Gift Card | 13 | down 1 | down 4 | up 4 | up 16 |
| Best Buy Gift Card | 14 | up 1 | up 3 | up 1 | up 1 |
| Fandango Gift Card | 15 | up 4 | - | down 3 | up 3 |
| MasterCard Gift Card | 16 | up 5 | up 5 | down 5 | down 5 |
| Lowe's Gift Card | 17 | up 6 | down 3 | up 5 | up 4 |
| Gamestop Gift Card | 18 | up 5 | up 16 | up 7 | down 1 |
| McDonald's Gift Card | 19 | up 2 | down 1 | down 1 | up 5 |
| Dunkin Donuts Gift Card | 20 | up 3 | up 2 | up 4 | up 4 |
| Olive Garden Gift Card | 21 | up 11 | down 5 | up 13 | up 5 |
| Ikea Gift Card | 22 | up 10 | up 1 | up 1 | down 9 |
| Etsy Gift Card | 23 | up 9 | up 2 | down 2 | up 4 |
| Subway Gift Card | 24 | up 8 | up 2 | up 8 | up 12 |
| Macy's Gift Card | 25 | down 10 | up 2 | down 11 | down 13 |
| Kohl's Gift Card | 26 | down 3 | up 16 | up 29 | up 35 |
| Chick-Fil-A Gift Card | 27 | down 4 | up 16 | up 12 | up 24 |
| Nike Gift Card | 28 | up 2 | up 3 | up 5 | up 5 |
| Rei Gift Card | 29 | up 14 | up 3 | up 6 | up 1 |
| Norstrom Gift Card | 30 | down 2 | down 6 | down 4 | down 6 |
| Chipotle Gift Card | 31 | up 1 | up 14 | down 11 | down 7 |
| Taco Bell Gift Card | 32 | up 7 | down 13 | up 6 | up 6 |
| Red Lobster Gift Card | 33 | up 22 | down 5 | up 8 | up 2 |
| Costco Gift Card | 34 | down 23 | down 4 | down 15 | down 14 |
| TicketMaster Gift Card | 35 | up 8 | down 2 | down 8 | down 16 |
| Texas Roadhouse Gift Card | 36 | up 13 | down 1 | up 12 | down 12 |
| Whole Foods Gift Card | 37 | up 2 | up1 | down 8 | down 1 |
| Applebees Gift Card | 38 | - | up 21 | up 16 | up 3 |
| JC Penney Gift Card | 39 | up 9 | up 2 | up 10 | up 10 |
| T.J. Maxx Gift Card | 40 | down 1 | up 4 | - | up 14 |
| Cabelas Gift Card | 41 | down 2 | up 6 | up 43 | down 28 |
| Cinemark Gift Card | 42 | up 7 | up 7 | up 1 | down 2 |
| Shell Gift Card | 43 | up 12 | down 23 | down 6 | down 1 |
| Hobby Lobby Gift Card | 44 | up 15 | down 8 | up 9 | down 44 |
| Apple Store Gift Card | 45 | down 2 | down 8 | down 15 | down 13 |
| Old Navy Gift Card | 46 | up 13 | up 78 | up 53 | down 3 |
| American Airlines Gift Card | 47 | up 2 | down 1 | up 8 | up 18 |
| Forever 21 Gift Card | 48 | down 5 | down 3 | down 20 | down 23 |
| Michaels Gift Card | 49 | up 10 | down 7 | up 2 | up12 |
| H&M Gift Card | 50 | - | down 21 | down 19 | down 16 |
To identify the year’s best gift cards, WalletHub compared the cards affiliated with the country’s 100 largest retailers in five categories that speak to their appeal and overall value. Each gift card was scored on a 100–point scale, with 100 representing the best option.
