Gift cards are the perfect last minute gift. Gift cards make gift-giving easy, quick, and reassuring to those who may worry about the recipient's tastes and needs. In short, gift cards are a safe and simple bet during the holidays.
The first gift card was launched in 1994 by Blockbuster and since then, the gift card industry has bloomed into a +$120 billion annual business. Merchants love gift cards too. Gift cards improve cash flow, promote upselling, and are a very profitable business. In 2015, almost $1 billion in gift card value went unused, despite gift cards being the most popular present to purchase.
But with so many gift cards on the market, and so many gift cards going unused, what is the best gift card to give (or get) this year? In short, what is the best gift card?
At LendEDU, we decided to answer that question by studying 101 of the most popular gift cards on the market. In our research we compared these gift card options using five different pieces of data:
1) Gift card popularity
2) Average purchase discount for buyers
3) Average resale value for sellers
4) Happiness of receiving a gift card (Note: we conducted a survey for this)
5) Shipping charges
Here are the Best Gift Cards for 2016:
After conducting our research, we created the Total Number of Points column to combine five pieces of data into a single ranking. Each gift card was ranked using a 100-point scale, with 100 points representing the highest score possible. Alternatively, a gift card earning 0 points would be achieving the lowest score possible.
Name of Gift Card
Total Number of Points
Number of monthly Google searches for the gift card
Average discount for buyers (shown as a percent)
Average resale value for sellers (shown as a percent)
Happiness Factor Rating (1-5)
Does the company offer free shipping?
Target Gift Card
83.34
33,100.00
0.06
0.87
3.59
YES
McDonald's Gift Card
83.34
6,600.00
0.12
0.75
2.98
YES
GameStop Gift Card
76.67
6,600.00
0.09
0.83
1.84
YES
Chipotle Gift Card
75.01
6,600.00
0.08
0.81
3.91
YES
Chick-Fil-A Gift Card
75.01
2,400.00
0.09
0.75
3.42
YES
Amazon Gift Card
75.00
74,000.00
0.02
0.91
3.89
YES
Walmart Gift Card
75.00
40,500.00
0.03
0.91
2.81
YES
CVS Gift Card
70.01
1,600.00
0.14
0.77
2.75
YES
Apple Gift Card
70.00
9,900.00
0.03
0.89
2.80
YES
Costco Gift Card
70.00
6,600.00
0.01
0.88
2.55
YES
Best Buy Gift Card
70.00
9,900.00
0.03
0.88
2.48
YES
Fandango Gift Card
68.34
14,800.00
0.16
0.71
1.51
YES
Starbucks Gift Card
66.68
33,100.00
0.08
0.73
3.41
YES
Cabelas Gift Card
66.68
1,300.00
0.09
0.75
2.84
YES
Dunkin Donuts gift card
66.67
6,600.00
0.10
0.70
3.87
YES
Krispy Kreme Gift Card
66.67
480.00
0.10
0.83
3.30
YES
Netflix Gift Card
66.67
12,100.00
0.03
0.82
3.26
YES
Home Depot Gift Card
66.67
9,900.00
0.05
0.82
3.13
YES
Olive Garden Gift Card
66.67
4,400.00
0.17
0.70
3.12
YES
Nike Gift Card
66.67
5,400.00
0.05
0.83
3.11
YES
Victoria's Secret Gift Card
66.67
12,100.00
0.05
0.75
2.85
YES
Sephora Gift Card
65.01
12,100.00
0.08
0.75
2.43
YES
Lowe’s Gift Card
65.01
6,600.00
0.06
0.81
2.12
YES
AMC Gift Card
65.00
6,600.00
0.18
0.69
2.41
YES
Bed Bath and Beyond Gift Card
61.68
2,400.00
0.06
0.82
2.80
YES
Rei Gift Card
61.68
4,400.00
0.06
0.80
2.74
YES
JCPenney Gift Card
61.68
2,900.00
0.10
0.72
2.55
YES
Toys R Us Gift Card
61.68
4,400.00
0.07
0.82
2.45
YES
Whole Foods Gift Card
61.67
4,400.00
0.05
0.83
2.75
YES
Nordstrom Gift Card
61.67
5,400.00
0.05
0.85
2.74
YES
Ticketmaster Gift Card
60.01
3,600.00
0.06
0.83
1.39
YES
Tim Hortons Gift Card
58.35
720.00
0.08
0.75
3.23
YES
Dick's Gift Card
58.35
1,000.00
0.11
0.71
2.84
YES
Petco Gift Card
58.34
720.00
0.25
0.60
3.40
YES
Ikea Gift Card
58.34
5,400.00
0.05
0.75
2.96
YES
North Face Gift Card
58.34
260.00
0.15
0.75
2.86
YES
Subway Gift Card
58.34
4,400.00
0.05
0.80
2.81
YES
Red Lobster Gift Card
56.68
2,900.00
0.15
0.72
2.41
YES
Walgreens Gift Card
56.68
720.00
0.12
0.76
2.27
YES
Google Play Gift Card
56.68
12,100.00
0.07
0.72
2.23
YES
American Eagle Gift Card
56.67
1,600.00
0.24
0.63
2.31
YES
eBay Gift Card
56.67
18,100.00
0.01
0.80
2.05
YES
Staples Gift Card
56.67
1,600.00
0.04
0.85
2.03
YES
Bass Pro Shops Gift Card
53.35
1,000.00
0.15
0.74
2.73
YES
Columbia Sportswear Gift Card
53.34
170.00
0.10
0.75
2.77
YES
Safeway Gift Card
53.34
1,300.00
0.02
0.92
2.72
YES
Urban Outfitters Gift Card
53.34
1,300.00
0.23
0.65
2.63
YES
Tiffany & Co. Gift Card
53.34
720.00
0.04
0.85
2.60
YES
Adidas Gift Card
53.34
100.00
0.10
0.75
2.47
YES
Taco Bell Gift Card
53.34
3,600.00
0.13
0.70
2.45
YES
Old Navy Gift Card
53.34
2,900.00
0.11
0.70
2.44
YES
Sunglass Hut Gift Card
53.34
590.00
0.18
0.70
2.44
YES
Macy’s Gift Card
51.68
3,600.00
0.07
0.75
1.85
YES
Kohls Gift Card
51.68
2,400.00
0.07
0.82
1.47
YES
Shell Gift Card
51.67
3,600.00
0.02
0.87
1.87
YES
H&M Gift Card
51.67
4,400.00
0.25
0.60
1.74
YES
Forever 21 Gift Card
51.67
5,400.00
0.17
0.65
1.64
YES
Express Gift Card
51.67
1,900.00
0.29
0.60
1.42
YES
Marhalls Gift Card
51.67
1,600.00
0.18
0.70
1.39
YES
Williams Sonoma Gift Card
50.01
880.00
0.05
0.82
2.86
YES
Kroger Gift Card
50.01
1,300.00
0.03
0.82
2.82
YES
iTunes Gift Card
50.00
40,500.00
0.05
0.65
3.22
YES
Pottery Barn Gift Card
48.35
1,300.00
0.06
0.80
2.01
YES
Dell Gift Card
48.35
1,300.00
0.07
0.82
2.00
YES
Neiman Marcus Gift Card
48.34
1,000.00
0.04
0.84
2.42
YES
Lord & Taylor Gift Card
48.34
40.00
0.12
0.75
2.34
YES
PF Chang's Gift Card
48.34
1,000.00
0.16
0.70
2.22
YES
Ruby Tuesday Gift Card
45.01
590.00
0.10
0.70
2.65
YES
Gap Gift Card
45.01
1,300.00
0.11
0.70
2.53
YES
1800Flowers Gift Card
45.00
50.00
0.35
0.60
2.63
YES
Giant Gift Card
45.00
170.00
0.05
0.85
2.47
YES
T.J. Maxx Gift Card
43.35
3,600.00
0.07
0.71
1.54
YES
Zales Gift Card
43.34
170.00
0.16
0.72
1.86
YES
Golf Galaxy Gift Card
43.34
480.00
0.18
0.72
1.66
YES
Sam's Club Gift Card
43.34
590.00
0.03
0.85
1.23
YES
Foot Locker Gift Card
40.01
1,600.00
0.05
0.72
2.17
YES
Pac Sun Gift Card
40.00
110.00
0.21
0.59
2.43
YES
Pier 1 Imports Gift Card
40.00
260.00
0.17
0.65
2.41
YES
Saks Fifth Avenue Gift Card
40.00
480.00
0.04
0.83
2.39
YES
Godiva Gift Card
40.00
140.00
0.25
0.60
2.07
YES
TGI Friday's Gift Card
40.00
390.00
0.20
0.65
2.04
YES
GNC Gift Card
36.68
590.00
0.06
0.60
2.78
YES
Regal Entertainment Gift Card
36.67
390.00
0.15
0.66
2.67
YES
Athleta Gift Card
35.01
720.00
0.11
0.70
1.97
YES
Banana Republic Gift Card
35.01
1,300.00
0.11
0.70
1.88
YES
Sears Gift Card
35.01
1,900.00
0.07
0.70
1.82
YES
Oakley Gift Card
35.00
320.00
0.20
0.65
2.79
NO
Dress Barn Gift Card
35.00
260.00
0.30
0.60
1.84
YES
Disney Gift Card
35.00
12,100.00
0.05
0.70
1.75
YES
Office Depot Gift Card
35.00
480.00
0.05
0.85
1.34
YES
Exxon Mobil Gift Card
31.67
170.00
0.03
0.81
2.38
YES
True Religion Gift Card
31.67
140.00
0.15
0.70
2.23
YES
Jiffy Lube Gift Card
31.67
320.00
0.12
0.70
2.12
YES
Ace Hardware Gift Card
26.68
210.00
0.08
0.72
1.99
YES
Barnes & Noble Gift Card
26.68
260.00
0.07
0.73
1.89
YES
Brookstone Gift Card
26.67
320.00
0.15
0.65
1.98
YES
Aldo Gift Card
26.67
260.00
0.12
0.65
1.26
YES
Kmart Gift Card
23.34
720.00
0.05
0.65
2.33
YES
Swarovski Gift Card
23.34
140.00
0.08
0.65
2.21
YES
Zara Gift Card
18.34
1,300.00
0.03
0.70
1.36
YES
Hallmark Gift Card
16.67
110.00
0.10
0.65
1.32
NO
Name of Gift Card
Total Number of Points
Number of monthly Google searches for the gift card
Average discount for buyers (shown as a percent)
Average resale value for sellers (shown as a percent)
Happiness Factor Rating (1-5)
Does the company offer free shipping?
Our Methodology
For each ranking catagory, we used percentile ranges to form the ranking scale.
1) Gift card popularity (25 points max): Using SEMRush we determined the number of people who search for each specific gift card using Google’s search engine. After collecting the search interest data for each gift card, we created point ranges using the highest 25th percentile, 50th percentile, 75th percentile, and the 100th percentile. Cards with a high search interest received a high score. Card with a low search interest received a low score. We assigned point values to each card using the following scale:
25 points: 76th percentile to 100th percentile
16.67 points: 51th percentile to 75th percentile
8.34 points: 26th percentile to 50th percentile
0 points: up to the 25th percentile
2) Average purchase discount for buyers (25 points max): Did you know that you can purchase gift cards on third party resale sites? We collected the average secondary market price of each gift card using the major gift card exchanges. In other words, if you wanted to buy this gift card on a resale site here is how much it would cost on average. Cards with high purchase discounts received a high score. Cards with low purchase discounts received a low score. Note: some sites were sold out of specific gift cards, so we used the projected discount.
25 points: 76th percentile to 100th percentile
16.67 points: 51th percentile to 75th percentile
8.34 points: 26th percentile to 50th percentile
0 points: up to the 25th percentile
3) Average resale value for sellers (25 points max): We collected the average secondary market price of each gift card using the major gift card exchanges. In other words, if you wanted to sell this gift card on a resale site here is how much you would get on average. Cards with high resale values received a high score. Cards with low resale values received a low score. Note: you may be wondering why the buyer price and the seller price are different, right? Well the third party gift card exchanges take a spread, or a cut of the action.
25 points: 76th percentile to 100th percentile
16.67 points: 51th percentile to 75th percentile
8.34 points: 26th percentile to 50th percentile
0 points: up to the 25th percentile
4) Happiness factor of receiving the gift card (15 points max): It has happened to all of us. That time when grandma gave us a gift card that we will never use. We decided to conduct an online survey to 500 consumers from the United States. The survey was conducted randomly to consumers over the age of 18. We asked our respondents to rank their expected happiness of receiving a gift card from each specific retailer. Respondents could choose the following: “I really wouldn’t like it”, “I probably wouldn’t like it”, “It is OK I guess, thanks”, “I would probably like it”, and “I would really like it”. We assigned point values 1-5 for these options, the higher the score the better. Average score was used when calculating the percentile ranges.
15 points: 76th percentile to 100th percentile
10 points: 51th percentile to 75th percentile
5 points: 26th percentile to 50th percentile
0 points: up to the 25th percentile
5) Convenience factor, does it ship for free? (10 points max): Who was the first retailer to offer free shipping on gift cards? We have no clue. But if you are going to be giving a lot of last minute gift cards free shipping matters. The gift card market has become pretty competitive for retailers. We found that almost all (over 98%) of the retailers offer some sort of free shipping on gift cards. We included e-gift cards as free shipping because you could print them out and wrap them up just fine.
10 points: retailer offers free shipping on gift cards
0 points: retailer doesn’t offer free shipping on gift cards
All together, we believe that these 5 factors create the overall best gift cards. Our rankings factor in data for both the gift givers and the gift receivers.
11 Tips for Getting the Best Gift Card
The best feature of a gift card is that you don’t have to know the recipient’s tastes – you can give the perfect gift in blissful ignorance. However, not all gift cards are equal. Here are 11 factors to consider before you send out gift cards this year:
1. Consider a gift card exchange: One of the smartest sources of gift cards is an online exchange. The cards are available at a discount of 2 percent to 25 percent or more. Furthermore, most exchanges do not impose a shipping fee. Check out our list of the best gift card exchanges and save a little money this year.
2. Avoid the old standbys: Many folks give cards from the big three: Discover, MasterCard, or Visa. These cards are certainly the most versatile, but they come with hefty fees. It generally costs about $4 to buy one of these cards, and possibly even more. If the card doesn’t get used after a year, you’ll have to fork over a monthly inactivity fee of $2.50. Yikes! If you want to give this kind of card because it can be used almost anywhere, you might as well give cash and save on the fees.
3. Take advantage of rewards: A gift card from a reward program, say from a credit card issuer, can be a good deal. A gift card can in some cases be redeemed for fewer number of points than would the equivalent cash-back reward.
4. Loyalty card pitfall: Prepaid, non-reloadable cards from promotional, award or loyalty programs may expire prematurely due to a quirk in the law. Normally, gift cards are good for five years, but the cards issued from loyalty programs can expire early. Always read the fine print when you buy or receive a loyalty card - no one likes to be embarrassed on the checkout line.
5. Avoid prepaid cards: Although superficially similar to gift cards, prepaid cards can be reloaded with additional cash. Think of them as debit cards without the checking account. Though prepaid cards can be useful in certain contexts, they don’t always make good gift cards because they are often saddled with a variety of fees. Rather than spending time researching the prepaid cards with the least fees, you can simply avoid them altogether and use gift cards as they were meant to be used – as gifts.
6. Avoid multi-vendor racks at retail stores: You’ve probably seen freely accessible racks of gift cards for sale in many different retail stores, so what’s the problem? Be careful. Thieves can and do empty the value from these cards before they are sold. For instance, a scammer might steal the card number by peeking down the card sleeve, then use the number for online purchases. They might even scratch off the area hiding the card number and then return the card to the rack. Worst of all, there is no recourse when these cards are compromised – no one will give you your money back. If you want to buy a gift card from a retail rack, make sure the rack in secured or placed in a protected area, such as behind a customer service desk.
7. Don’t buy a gift card for a store on life support: A single-store gift card might be a nice way to add some specificity to your gift. For example, if the recipient is an avid fly fisherman, a gift card from a sporting goods store might be appreciated. A gourmand might like a gift card from an all-you-can-eat Argentinian steakhouse. However, if you’ve heard rumors or read news that a retailer or chain is in financial trouble, don’t buy its gift cards. The store might expire before the card!
8. Check out warehouse clubs: Many of the warehouse clubs sell gift cards at a discount. For example, you might be able to buy a $50 restaurant gift card for only $45. That’s a good deal, especially if the recipient likes to eat.
9. Tell recipients about gift card exchanges: There is always the chance that the recipient can’t or won’t use the gift card you so thoughtfully gave. Why not include a note with the card identifying some card exchanges where recipients can unload or swap cards? These exchanges are not known to everyone, so a little info can go a long way toward pleasing gift card recipients.
10. Give an e-card: Who needs plastic anyway? So many consumers now shop online that an electronic gift card may be the perfect gift. The gift is immediate (attention procrastinators!) and avoids any shipping fees. All the big online retailers, including Amazon and Target, offer e-cards.
11. Check out Groupon: Groupon and other marketing outlets work with stores, event venues, and restaurants to offer valuable discount coupons. Often, these marketers offer deals on discounted gift cards. For example, Groupon at one time teamed up with Starbucks to offer $15 gift cards for just $10. These deals come and go, but if you can catch one, you can save a nice chunk of change, especially if you have a dozen friends who love coffee.
©2016
The post Best (and Worst) Gift Cards of 2016 – Study & Report appeared first on Lendedu.