What Does "Already Redeemed" Mean for Gift Cards? An In-Depth Guide

Have you ever gone to redeem a gift card only to be told it‘s "already redeemed"? As a tech-savvy data analyst and avid online shopper, I‘ve faced this frustrating experience myself in the past.

In this comprehensive guide, we‘ll explore the meaning behind "already redeemed" gift card messages, why it happens, and most importantly – what you can do about it.

The Literal Meaning: The Funds Were Already Used

When you receive any kind of "already redeemed" or "gift code already redeemed" message, it means literally what it says – the gift card or code you are trying to redeem no longer has funds available because someone already used it.

This could have been:

  • You, if you already redeemed the card previously and forgot.
  • Someone you gifted the card to.
  • Someone else who acquired the gift card number.

Essentially, the funds associated with that specific gift card code have already been depleted, so there‘s no balance left to redeem towards a purchase.

Common Scenarios That Lead to Already Redeemed Cards

Now that we know the basic definition, let‘s explore the most common scenarios that result in an "already redeemed" gift card experience:

You Already Redeemed It Yourself

If you‘re trying to use the same gift card twice on your Amazon account for example, it makes sense you‘ll get an already redeemed message. Most of us have so many gift cards these days we sometimes lose track.

Always check your gift card balance on the retailer website first before assuming a card still has money. This takes an extra minute but saves the frustration!

Someone Else Redeemed the Card

When you buy a physical or e-gift card, the retailer has no way to know whether you or someone else ultimately redeems it.

If you bought the card but then gifted it to a friend or family member, chances are they already put it towards their own purchases if some time has passed. Digital gift cards in particular are easy to forward via email.

Even if you didn‘t intentionally give the card to someone else, someone who found the physical card or obtained the number could have redeemed it. Which brings us to…

Gift Card Fraud Does Happen

While less common, gift card numbers do unfortunately get obtained and redeemed through fraudulent means like hacking retailer databases or intercepting digital gift card codes.

According to the FBI‘s Internet Crime Complaint Center (IC3), consumers lost over $245 million to gift card fraud from 2018 to 2020.

So gift cards being "already redeemed" doesn‘t necessarily mean it was redeemed legitimately. You may want to report suspected fraudulent use depending on the situation.

Retailer Redemption Issues

In some less common cases, a gift card may show as already redeemed due to a technical glitch rather than actual prior redemption.

This could be an issue like the retailer‘s system not properly recording redemptions or syncing card usage across platforms. But it‘s relatively rare.

Delayed Redemptions

One last scenario is when there is a delay between using a gift card and the retailer‘s systems showing it as redeemed.

So you may purchase and redeem a card, then buy something else a day later only to see an already redeemed message because their systems hadn‘t caught up yet. This is also uncommon but possible.

Why Do So Many Gift Cards Go Unredeemed?

Before we get to what steps you can take, it‘s worth looking at some surprising gift card redemption statistics:

  • According to Mercator Advisory Group, between 10-19% of gift card balances remain unredeemed across the board.

  • For cards with a balance between $10 and $100, 27.7% remain unredeemed after 2 years.

Balance Amount Unredeemed After 2 Years
$10 – $25 35.2%
$25 – $50 34.6%
$50 – $100 16.8%
  • And according to another study by TowerGroup, a full 6% of gift cards are never redeemed at all!

Why does this matter? Because statistically, the longer you wait to use a gift card, the more likely it will have already been redeemed by someone else.

Unused gift card funds also represent a major liability for retailers, which is why many support nonprofit gift card donation programs like GiftCardBank.org.

So when in doubt, use your gift cards sooner rather than later to get the full value. Check balances periodically too.

Steps to Take If Your Gift Card is Already Redeemed

If you do get that dreaded "already redeemed" message, here are some tips on handling it:

1. Contact the Retailer‘s Gift Card Support

Most major retailers like Amazon, Target, Walmart, Best Buy and more have dedicated gift card customer support you can contact by phone or email.

Reach out to them with details like the gift card number, amount, and purchase date and location. Providing the original gift card receipt is also very helpful.

Depending on their policies, the retailer may offer you options like:

  • Verifying available balance
  • Issuing a replacement card
  • Refunding the purchase amount

It can take persistence and patience dealing with customer service. But retailers want to maintain brand loyalty, so keep calmly following up if needed.

2. Review Account Histories and Check with Recipients

For gift cards linked to an existing account like Amazon, iTunes, or Steam:

  • Sign out then back into the account on that platform to refresh your balance and redemption history.

  • Check for any gift redemptions to see if you or someone else applied it previously.

If you gifted the card to someone else, also follow up with them to see if they already redeemed it. They may have forgotten to mention it.

3. Report Suspected Fraudulent Use

If you purchased the gift card recently and took precautions like not openly displaying the code, suspicious fraudulent redemption is possible.

Some steps to take:

  • Contact the retailer about tracing the redemption activity and disabling the gift card.

  • Check if the retailer has online gift card re-registration where you can lock in your information. Make sure to do this when purchasing gift cards.

  • File a report through the FTC Complaint Assistant or FBI Internet Crime Complaint Center. Provide all details.

  • Report the fraud to your local police department. They may be able to work with retailers to trace redemption activity in criminal investigations.

  • Monitor your accounts since gift card fraud is sometimes tied to identity theft and account breaches.

4. Resell Unwanted Gift Cards

If you received an unwanted gift card that you will never redeem, you can get a portion of the value back by reselling it. Here are some safe options:

  • CardCash – This major site buys and sells unused gift cards from retailers, restaurants, and more. You can get up to 92% of the value.

  • Cardpool – Similar to CardCash, they buy and sell a wide range of gift cards. Interesting fact – they once bought a $6,000 Amazon card for $5,000!

  • eBay – The online auction site allows you to post gift cards for sale in a safe, structured marketplace with buyer protections.

  • Gift card exchange subreddits – These include r/GCTrading for buying/selling/trading gift cards at set rates. Use caution to avoid scams.

Reselling is convenient but you will take a value hit in most cases. Often better to regift cards if possible.

Can Retailers and Police Trace Gift Card Use?

If you receive an already redeemed message and suspect outside misuse, a fair question is whether that redemption can be traced. There are a few considerations:

  • Credit card network gift cards – Gift cards tied to Visa, Mastercard, American Express and Discover can be tracked just like regular credit card purchases. The activity is linked to card numbers.

  • Retailer-issued cards – The ability to trace depends on the retailer‘s internal systems and processes. Larger retailers with robust gift card programs generally have better tracking such as correlating redemption to a purchase transaction record.

  • Prepaid scratch-off cards – These are essentially untraceable since the retailer has no record of the buyer or redeemer. They only know the amount each card was activated for.

According to security expert Gary Miliefsky, American Express has the strongest fraud controls on its gift cards. The company utilizes blockchain encryption and constantly updates card numbers to stay ahead of fraudsters.

For retailer cards, police may be able to work with companies to subpoena and investigate gift card activity records if criminal use is suspected. But ability to trace will vary.

Do Gift Cards Expire? How Long are They Valid?

With unused gift card balances totaling billions of dollars every year, it‘s natural to wonder how long those funds remain valid if you don‘t redeem quickly.

There are some protections in place:

  • Federal law – The Credit Card Accountability Responsibility and Disclosure Act (or CARD Act) prohibits gift cards from expiring less than 5 years from the purchase date. Most retailers abide by this standard expiration period.

  • State laws – Some states like California and Montana have laws requiring gift cards to remain valid for longer periods or in some cases not expire at all.

  • Card network policies – American Express, Mastercard, and Visa gift cards don‘t expire currently. If the physical card wears out, you can request a replacement for the funds.

  • Retailer policies – Expiration varies based on retailers‘ specific policies. For example, Amazon gift cards expire after 10 years per their terms.

  • Expired cards – In some cases, retailers may allow gift cards to be reactivated after expiration through customer service. You can also sell or exchange unused expired cards.

The important takeaway is to redeem gift cards sooner rather than later, but also check your state‘s laws and retailer policies if holding an unused card for an extended period.

Getting a Refund on an Already Redeemed Gift Card

Now for the bad news – if a gift card is already redeemed, you most likely won‘t get your money back.

Gift cards are generally considered equivalent to cash transactions for accounting purposes. Most retailers don‘t allow returns or refunds on depleted cards.

There are a few rare exceptions or scenarios:

  • Customer service assistance – The retailer may sometimes offer a one-time courtesy refund or credit if you have proof of purchase and a compelling story. But don‘t expect it.

  • State refund laws – A small number of states require allowing gift card refunds if requested within X days/years of purchase, even if already redeemed. For example, Rhode Island allows refunds on cards up to 1 year from purchase date.

  • Recipient initiated refund – If the gift card recipient themselves didn‘t redeem the card and has evidence, the retailer may refund to the original purchaser or account.

  • Fraud investigations – Retailers may refund compromised gift cards as part of fraud claims, but typically only with police reports and thorough verification.

Outside of exceptional cases, already redeemed gift cards are generally non-refundable. So again, buy only as you need, check balances periodically, and redeem sooner rather than later.

How to Check Gift Card Balances and Redemption Status

The best defense against those "already redeemed" pitfalls is monitoring your gift card balances closely across retailers. Here are some tips:

Amazon

  • Sign into your Amazon account online or in the app
  • Go to ‘Your Account‘ and select ‘Gift cards‘
  • You‘ll see updated balances and redemption status

iTunes/App Store

  • Navigate to redeem an iTunes or app gift card
  • Enter the code – it will show redeemed or give the available balance

Major retailers

  • Most have a gift card balance check option on their websites or apps
  • Search for “check gift card balance” or similar

Card issuer portal

  • Many Visa/Amex/Mastercard gift cards have an associated website to check balances
  • Examples: MyPrepaidCenter.com or CheckCardBalance.com

Gift card re-registration

  • Some retailers allow re-registering cards with your details as a protective measure
  • This lets you track balances, lock use if lost, etc.

Routinely checking gift card balances takes little time but pays off by not leaving money on the table. And you can avoid the headache of trying to redeem funds already depleted!

Summary: Be Proactive Avoiding "Already Redeemed" Pitfalls

Getting that "already redeemed" or "gift code already redeemed" message can be infuriating, especially if it‘s a high-value card you were counting on. While sometimes unavoidable, there are ways to minimize the odds through smart gift card strategies:

  • Always check balances first before assuming funds are still loaded
  • Redeem sooner rather than later – don‘t let cards languish since unused balances are common
  • Register cards with your details when possible – It enables balance tracking and locking if lost
  • Know the expiration policies and state laws to ensure cards remain valid
  • Buy only what you need – Don‘t stockpile cards or overspend as insurance
  • Review account activity for any forgotten redemptions on your end
  • Contact support if an issue arises – provide purchase receipts and card details
  • Be aware unused funds are hard to recover if already redeemed

Staying proactive gives you the best shot at avoiding the redemption pitfalls and using gift cards to their full value. You work hard for your money so make it count!

Did you find this guide helpful? Any other "already redeemed" experiences or lessons learned? Let me know in the comments!

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