Gift cards have become a retail juggernaut, with total sales reaching an estimated $619.25 billion in 2019 alone according to research from Mercator Advisory Group. As one of the United States‘ largest and most popular retailers, Target captures a significant portion of this gift card market. In fact, a survey by WalletHub found that Target gift cards were the second most popular choice among consumers, trailing only Visa gift cards.
However, as any experienced shopper knows, sometimes you end up with a gift card that you simply can‘t or won‘t use. Whether it was an unwanted present or an impulse purchase that you later regretted, dealing with these extra gift cards can be tricky – especially in light of Target‘s recent policy changes. In this ultimate guide, we‘ll equip you with everything you need to navigate Target‘s gift card return policies like a pro.
Target‘s Current Stance on Gift Card Returns
In October 2020, Target joined the ranks of retailers tightening their policies on gift card returns. As of October 1st, 2020, Target implemented the following rules:
- No returns or exchanges are allowed for any Target gift cards purchased on or after 10/1/2020. This includes physical cards, mobile gift cards, and eGift cards loaded into your Target account.
- The only exceptions are in locations where local laws require gift card refunds, such as California and Rhode Island.
- For gift cards purchased prior to 10/1/2020, you may still be able to return the physical card if it is unused and you have the original purchase receipt. Mobile and eGift cards remain ineligible for return regardless of purchase date.
This policy applies to all Target-branded gift cards, including specialty designs for holidays and occasions. It also covers any third-party gift cards sold by Target, such as gift cards for restaurants, streaming services, gaming platforms, or other retailers.
Interestingly, while standard Target gift cards no longer expire and have no inactivity fees thanks to the federal CARD Act of 2009, some Target Visa gift cards may still have expiration dates or dormancy fees. Be sure to read the terms and conditions carefully when purchasing these products.
The Reasoning Behind the Policy Shift
So why did Target decide to implement such strict limitations on gift card returns? While the retailer has not provided extensive public commentary, there are a few likely factors at play.
Gift card return fraud has become an increasing concern for retailers in recent years. Scammers may attempt to steal cards from stores, use the funds, then return the empty card for cash. They could also purchase gift cards with stolen credit cards then cash out before the fraud is detected. The National Retail Federation estimates that gift card fraud cost retailers $78,000 per $1 million in sales as of 2018.
Another possible motivation is to simplify the accounting and logistics of gift card sales. When a gift card is sold, retailers must track and report the revenue as a liability until the card is redeemed. By making gift cards non-refundable, Target can streamline this process and reduce the need to keep funds in limbo for potential returns.
Exceptions and Special Cases
While Target‘s base policy is quite firm, there are a few scenarios where you may encounter different results.
If you purchased your gift card using a Target RedCard (either credit or debit), you may have more flexibility. The standard RedCard return policy allows for returns within 90 days of purchase for most new, unopened items. You would still need to have the original receipt and meet other eligibility criteria. However, some shoppers have reported success with RedCard gift card returns even after the 2020 policy change.
Another potential exception applies to large quantity gift card purchases. If you bought a substantial amount of gift cards for a business or organization, such as for employee incentives or a fundraiser, you may be able to arrange a special return exemption by contacting Target‘s corporate customer service channels directly. Be prepared to provide documentation of the purchase and your reason for needing a return.
Handling Unwanted Target Gift Cards
So you‘ve got a Target gift card burning a hole in your pocket, but you‘re just not interested in using it yourself. What are your options? Here are a few suggestions, along with their potential benefits and drawbacks:
| Option | Pros | Cons |
|---|---|---|
| Regift it | Easy and cost-free way to pass along the value to someone else | May still end up unused if you don‘t pick the right recipient |
| Sell it online | Can recoup some of the card‘s cash value, often 70-90% of face value | Third-party resale markets can be risky, with fraud concerns on both sides |
| Trade for a different card | Swap for credit with a retailer you prefer without losing value | Limited options, may need to use a third-party site, balance may not transfer 1:1 |
| Use it to buy staples | Get practical value from the card on purchases you would have made anyway | May not maximize the card‘s value compared to buying something special just for you |
| Donate to charity | Support a good cause and potentially get a tax deduction | No personal benefit beyond feeling altruistic |
My personal recommendation would be to first carefully consider if there‘s a way to use the card yourself that would feel worthwhile. With Target‘s wide product assortment, you might be surprised at what you can find. A 2019 Comperemedia survey found that 45% of consumers have held onto a gift card for over a year, often simply because they forgot about it or didn‘t get around to using it.
If you do decide to sell or trade the card, be very cautious about which platforms you use. Well-known marketplaces like Raise and CardCash have more robust protections than, say, Craigslist or Facebook Marketplace. Always check reviews and only send your card once you have confirmed the buyer‘s payment.
Buying Target Gift Cards Wisely
To avoid ending up with an unwanted gift card in the first place, put some thought into your purchase. Consider your recipient‘s shopping habits – do they frequent Target already? Would they prefer the flexibility of a Visa or Mastercard gift card instead? Particularly for gifts, it‘s worth asking what the person might want or offering a choice between a few retailer options.
If you‘re buying a Target gift card for yourself, make sure to devise a plan for how you‘ll use it. If you only shop at Target occasionally, you may be better off just paying normally so you don‘t risk forgetting the gift card later. But if you anticipate any large Target purchases in the near future or you‘re a frequent loyalist, then loading up a gift card during a promotional period could be a smart move.
Speaking of promotions, Target is known to run special deals on gift cards a few times per year. You might find bonus offers like $10 off a $100 gift card, or BOGO 20% off discounts around the holidays. These are great opportunities to essentially get free money from Target – just be sure to spend those cards before you lose them!
The Bottom Line
Target‘s revised gift card return policy may be frustrating for some shoppers, but it‘s important to understand the rationale behind it. As long as you go into your Target gift card experience with eyes wide open, you can get great value and enjoyment from these versatile retail products. The key is to be proactive: if you receive an unwanted gift card, act quickly to explore your options. And if you‘re giving a Target GiftCard, do your best to pick an amount and design that will delight your recipient.
By following the tips and insights shared in this guide, you‘ll be well-prepared to navigate Target‘s gift card ecosystem like the savvy shopper you are. Here‘s to happy gift card giving and redeeming!
