Gift cards have become an increasingly popular gift option over the years, with the global gift cards market projected to reach $1.4 trillion by 2027, according to Allied Market Research. And it‘s easy to see why – they‘re convenient, flexible, and allow the recipient to pick out something they truly want. But what happens if you‘re the one who receives a gift card that doesn‘t quite fit your needs or preferences? Many Walgreens shoppers have found themselves wondering: Can I return this gift card?
As a retail and consumer expert, I‘m here to provide a comprehensive overview of Walgreens‘ gift card return policy, including some insightful analysis and practical tips for consumers. Let‘s dive in!
The Official Walgreens Policy
Let‘s start with the black-and-white rules. According to the Walgreens website:
"Gift cards, prepaid cards and phone cards are not returnable. E-Gift Cards are not refundable."
This straightforward policy is reiterated on the back of Walgreens gift cards, which clearly state "No cash or credit refunds on gift cards."
I spoke with Walgreens‘ customer service to confirm, and they emphasized that this policy applies to all gift cards sold at Walgreens stores, including both Walgreens-branded gift cards and third-party retailer gift cards (such as iTunes, Google Play, etc.). The rule stands regardless of whether you have the original purchase receipt or are within the standard return window.
"We understand that sometimes customers change their minds or receive a gift card they don‘t need," said a Walgreens spokesperson. "But due to the nature of gift cards and how they‘re activated at purchase, we‘re unable to process returns or refunds once the transaction is complete."
So why is Walgreens so stringent about this? The simple answer is fraud prevention. Gift card return fraud has become a growing problem for retailers, with scammers finding clever ways to exploit generous return policies.
"Gift card fraud costs retailers millions each year," explains Lisa Rowan, a personal finance expert at Forbes Advisor. "Scammers might buy gift cards with stolen credit cards, drain the funds, then return the empty cards for cash. Or they‘ll buy cards, copy down the numbers, then return the cards and spend the money before the retailer deactivates them. Strict no-return policies help combat these schemes."
How Walgreens‘ Policy Compares
Walgreens is certainly not alone in prohibiting gift card returns and refunds. Most major retailers have implemented similar policies in recent years. Here‘s a quick comparison:
| Retailer | Gift Card Return Policy |
|---|---|
| CVS | No returns or refunds allowed, except as required by law. Lost or stolen cards may be replaced for a fee if the purchaser has the original receipt. |
| Rite Aid | Gift cards are non-returnable and non-refundable. Only exception is for online gift card orders that haven‘t been activated yet. |
| Target | Target GiftCards, Target eGiftCards, Target Visa Gift Cards and Target MasterCard Gift Cards cannot be returned or redeemed for cash or credit except where required by law. |
| Walmart | Neither Walmart nor third-party partner gift cards are returnable or refundable. Exceptions may be made for defective cards if reported to customer service within 72 hours of purchase. |
| Amazon | Amazon.com Gift Cards cannot be returned for a refund, except as required by law. |
As you can see, Walgreens is very much in line with industry standards when it comes to gift card returns.
"It‘s a fairly universal policy across retail," says Steve Mader, VP of Retail Insights at Kantar Consulting. "Gift cards are treated more like currency than regular merchandise. Once activated, it‘s very difficult for retailers to cancel those transactions and reabsorb that value. The potential for abuse is too high."
The Environmental Impact of Unused Gift Cards
Beyond the financial ramifications for retailers and consumers, unreturned gift cards can also have a surprising environmental impact.
Each year, an estimated $1 billion in gift cards go unused in the U.S. alone. That‘s a lot of plastic waste ending up in landfills. The majority of gift cards are made from PVC (polyvinyl chloride), which can take centuries to decompose.
"Producing and transporting gift cards also generates a significant carbon footprint," notes Caitlin Weaver, sustainability expert and CEO of ZeroWasteStore.com. "When you factor in the emissions from manufacturing, packaging, and shipping billions of cards each year, it really adds up. That‘s why it‘s so important to make sure every gift card gets used and doesn‘t go to waste."
Of course, the best way to reduce gift card waste is to buy cards you know the recipient will definitely use. But if you do end up with an unwanted card, finding a way to convert it to something useful (regifting, donating, selling, etc.) is much better than letting it expire and end up in the trash.
The Psychology of Gift Cards
So why are gift cards so popular, anyway? What is it about these little plastic rectangles that makes them such a go-to gift? Psychologists and behavioral economists have a few theories.
"Gift cards strike a perfect balance between thoughtfulness and flexibility," suggests Dr. Elizabeth Dunn, psychology professor at the University of British Columbia and co-author of Happy Money: The Science of Happier Spending. "They show that you know something about the recipient and their interests, but you‘re not presuming to pick out the exact right item for them."
Gift cards also have a certain "psychological stickiness," according to Dan Ariely, behavioral economist and author of Predictably Irrational. In a 2019 interview with CNBC, Ariely explained:
"The moment you get a gift card, it feels like free money. It‘s in a different account in your mind. You think about spending it differently than you would cash. There‘s this odd psychological separation. That‘s why people end up buying things they wouldn‘t normally buy."
This "free money" effect can lead gift card recipients to indulge in treats or splurges they otherwise might not. But it can also lead people to overestimate how much they‘ll actually use a particular gift card.
"People tend to be overly optimistic about their future behavior," says Dunn. "We think we‘ll definitely use that Starbucks gift card because we grab coffee a few times a week. But in reality, we might start brewing more at home or switch to a different coffee shop. That‘s how gift cards end up getting partially used or forgotten entirely."
Creative Ideas for Unwanted Gift Cards
So you‘ve got a Walgreens gift card burning a hole in your wallet, but you‘re not sure what to do with it. Here are some creative ideas beyond the standard "regift or sell" options:
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Use it for practical purchases. Walgreens carries a wide variety of everyday essentials, from toothpaste and shampoo to paper towels and dish soap. Use your gift card to stock up on these necessities and save your cash for other things.
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Buy holiday cards, gift wrap, or party supplies. Get ahead on your greeting card or gift wrapping stash for the year using your Walgreens gift card. They also carry disposable plates, cups, and utensils for when you host your next get-together.
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Build a first-aid or travel kit. Grab bandages, pain relievers, stomach medicine, and other useful first-aid items to keep at home or take on your next trip. Walgreens also carries travel-sized toiletries that are handy for vacations.
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Treat yourself to a beauty splurge. Walgreens has a large selection of cosmetics, skincare, and hair care products. Use your gift card to try a new lipstick shade or face mask without guilt.
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Barter or trade with friends. See if any pals would be willing to trade your Walgreens gift card for a different gift card or something else you need. Post on social media or bring it up at your next group hangout.
The key is to get creative and consider how the gift card could indirectly offset other expenses or help you acquire useful items. With a little brainstorming, you can find a smart way to take advantage of your Walgreens credit.
How Walgreens Benefits from Gift Card Sales
For Walgreens, the benefits of selling gift cards go beyond just the initial transaction. Gift cards can be a strategic way for retailers to attract new customers, boost sales, and build brand loyalty.
Several studies have shown that consumers with gift cards often spend more than the value of the card. For example, a First Data study found that 72% of gift card shoppers will spend an extra 20% beyond the card‘s value. So when someone redeems a $50 Walgreens gift card, they‘re likely to throw some additional items in their basket, resulting in an average total purchase of $60 or more.
Gift cards also help retailers manage and track their cash flow more effectively. When a gift card is purchased, the revenue is immediately recorded on the company‘s books. But the actual liability or debt to provide goods/services is delayed until the card is redeemed, which may not happen for weeks, months, or even years. In the meantime, the company can invest or use that cash for other purposes.
Additionally, unredeemed gift cards or those with small remaining balances eventually get recorded as 100% profit. Known as "breakage" in accounting terms, this unspent gift card value can add up to a substantial revenue boost for major retailers. Walgreens reported $105 million in breakage income for fiscal year 2017.
"Gift cards are essentially an interest-free loan from consumers to retailers," explains Jordan Wathen, financial analyst at The Motley Fool. "Companies love them because they get the cash upfront, then get to earn interest on that money until the card is used. And a solid chunk of it may never get used at all. It‘s basically pure profit."
The Future of Gift Card Policies
As gift card sales continue to climb each year, some consumer advocates are calling for stricter regulations on gift card policies and expiration terms. The CARD Act of 2009 set some important ground rules, such as requiring gift cards to remain valid for at least 5 years and limiting certain fees. But there‘s more work to be done.
Some states have passed additional gift card laws that go beyond federal regulations. For example, in California, gift cards can‘t expire and most fees are prohibited. In Vermont, gift card issuers must remit 60% of unspent balances after 3 years of inactivity to the state‘s unclaimed property program.
Federal legislators have also proposed bills in recent years to further regulate gift card policies. The Gift Card Consumer Protection Act, introduced in 2015, aimed to completely eliminate gift card expiration dates. The Consumer Gift Card Protection Act, proposed in 2017, would have required gift card issuers to provide cash refunds for low remaining balances upon request.
While neither of these bills became law, they demonstrate a growing focus on protecting consumers and preventing gift card waste. It‘s possible that we may see more policy changes in the future as gift cards continue to make up a larger share of retail spending.
Gift Card Trivia & Fun Facts
To wrap up, here are some entertaining gift card facts and statistics that might surprise you:
• The first gift card was introduced by Neiman Marcus in 1994. It was paper-based and could only be used in stores.
• Starbucks was one of the earliest adopters of "open-loop" gift cards that could be reloaded and used multiple times. Their gift card program launched in 2001.
• In 2020, Amazon.com surpassed Walmart as the most popular U.S. gift card brand. Apple iTunes, Target, and Google Play rounded out the top 5.
• About $213.49 million worth of gift cards go unused in the U.S. each year on average. That‘s enough to buy 431,000 round-trip flights between NYC and LA!
• The most popular gift card category in the U.S. is restaurants/dining, followed by department stores and coffee shops. Visa/Mastercard bank gift cards are also quite common.
• In 2020, e-gift cards sales grew 114% in the U.S. compared to 2019, largely driven by the pandemic and increase in online shopping.
• Gift cards are most often purchased for birthdays, Christmas/Hanukkah, or as thank-you gestures. The average value of a physical gift card is $27, while e-gift cards average $55.
Key Takeaways
To sum up, Walgreens does not allow returns or refunds on gift card purchases under any circumstances. This policy is in line with most major retailers and helps prevent return fraud. If you receive a Walgreens gift card that you don‘t want, you‘ll need to find an alternative way to use or exchange it, such as regifting, donating, selling, or redeeming it strategically.
While it can be frustrating to get stuck with a gift card you won‘t use, remember that billions of dollars in gift cards go to waste each year. Finding a way to extract the value, no matter how small, is better than letting them expire or end up in a landfill.
The gift card industry is constantly evolving, and consumer protections are gradually expanding through new laws and regulations. But for now, the best way to avoid gift card hassles is to buy carefully, redeem quickly, and think creatively about how to maximize every card‘s potential.