Bangalore: The amount of money not redeemed through gift cards in the U.S. is about $41 billion, as revealed in a National Retail Federation survey in The Wall Street Journal. This number has steadily gone up from 2005 to 2011. Also, the amount of money being spent in purchasing gift cards is going up.

According to the survey, 80 percent of the respondents said that they wished to purchase gift cards in 2011, especially during the Holiday season, while 58 percent of the respondents wished to receive gift cards. According to TowerGroup, a financial consulting firm, the sales of gift cards have been around $100 billion this year. The categories in which consumers usually spend through gift cards are – restaurants and retail. Also, stores usually have such policies in order to ensure cash flows even in the off-seasons. This number might also be going up because some cultures prefer to receive gift cards than thoughtless gifts.

The survey states that most gift cards purchased are either not redeemed or lost. According to Brian Riley, an analyst at TowerGroup, the money which is collected through the above means adds up to about $41 billion since 2005. This is so because there is no expiry date on such gift cards and many a times customers redeem their gift cards after years together. About $3.4 billion out of $41 billion are either lost or not used at all. The Securities and Exchange Commission has allowed concerned companies to keep the collected money as long as the customers say that they do not wish to redeem the gift cards. However, there is no fixed time period for this and the customers might claim their rewards after a very long time.

According to Best Buy, online websites have made around $53 million this way in 2011, as compared to $43 million of 2010. The state governments say that the money collected this way should be given to the government for socially beneficial projects. However, each state has its own regulation pertaining to this. According to a study by Plastic Jungle, retailers are also not too happy with gift cards, primarily, for two reasons. Firstly, money collected through unredeemed gift cards can be claimed by the state governments under the Escheatment Laws. Secondly, customers tend to buy more items when they have ready cash or plastic cards with them when compared to redeeming gift cards. This study also states how retailers are joining hands with gift card exchange firms to contour efficiently the process of redeeming gift cards. This partnership will help customers encash their gift cards into other forms of products or services, like – PayPal, Facebook Credit, services like – going to a spa, movie or dinner, etc.