Buzz
Some view gift cards as a last-minute, low-effort option, signaling a lack of thoughtfulness. Others see them as a way to grant the recipient the freedom to choose exactly what they desire, avoiding the risk of receiving an unwanted or impractical gift.
The gift card industry is booming, with an estimated $324.5 billion in revenue projected for 2024. Financial advice platform WalletHub recently analyzed the market to create a list of the most worthwhile gift cards to purchase or receive. Here are their findings.
- Amazon
- Target
- Sephora
- Walmart
- Starbucks
- Disney
- Home Depot
- REI
- eBay
- Nike
- Sonic
- Chick-fil-A
- iTunes
- Best Buy
- Costco
- Netflix
- IKEA
- Lowe’s
- Michaels
- Texas Roadhouse
At first glance, it’s unclear what makes one gift card superior to another. Shouldn’t you simply choose a retailer the recipient prefers? While that’s part of the equation, WalletHub suggests the ideal gift card is one that can be bought below its face value, often available on aftermarket exchanges or at warehouse clubs like Costco. Additionally, the card should maintain most of its value if the recipient opts to sell it for cash. WalletHub also considered retailer customer satisfaction and any associated fees.
Based on these criteria, Amazon emerged as the top choice, followed by Target, Sephora, Walmart, and Starbucks. These cards can often be purchased at a discount, resold near their full value, and are linked to businesses with strong consumer approval ratings.
Notably absent from the list are Visa or Mastercard gift cards. While these cards offer flexibility, allowing use at multiple retailers, they often come with activation fees ranging from $2.95 to $5.95, making them a less economical choice. WalletHub notes that if the goal is to provide spending flexibility, cash is a more cost-effective option.
Ultimately, the best gift card is one the recipient will actually use. With an estimated $244 in unused gift card balances per person in the U.S., these cards often end up benefiting retailers more than the recipients.
