Safe and Secure Gift Card Conversion Tips

Safe and Secure Gift Card Conversion Tips

The holiday season is upon us, and for many, that means gift cards galore. Gift cards have become a go-to gift item for all occasions. With so many gift cards floating around, you may be looking for ways to consolidate balances or get cash for unwanted cards. 

While gift card conversion can provide needed money, it does come with some serious risks. In this blog post, we will explore safe and secure gift card conversion tips to act as a guide for you in order to avoid getting scammed.


What Is Gift Card Conversion?

Gift card conversion refers to taking an unused gift card balance and exchanging it for cash or a different gift card. There are several ways to convert gift cards:

  • Sell to a gift card exchange website: Sites like FlipEx allow users to sell unused gift cards for Naira at high rates. Gift card conversion transactions are super smooth on FlipEx.
  • Use at a restaurant or retailer: Some establishments allow you to convert brand-specific cards into more versatile prepaid cards.
  • Swap with friends and family: You can trade gift cards with others to get more useful cards.


Risks and Challenges of Gift Card Conversion

According to the National Retail Federation, consumer spending on gift cards is expected to reach a whopping $29.9 billion in 2023. While gift card conversion provides a way to recover some value from unused gift cards, there are always risks involved:

Fraud: Some gift card trading sites are fraudulent and may steal your gift card information and balances. It is therefore crucial to verify the authenticity of a gift card exchange platform before using their services.

Fees: Most gift card conversion exchange platforms charge service fees that diminishes the value of the giftcards. It is important for you to be aware of these applicable fees before proceeding on any giftcard conversion transactions. Redeeming giftcards on FlipEx is completely free of additional charges; you will get the exact value for any gift card traded on FlipEx.

Partial Balances: Unused gift card balances under a certain amount may not be eligible for conversion. So, it is always advisable to check with your platform of choice before going ahead. On FlipEx you can convert your gift cards to Naira from a minimum of $20

Expiration Dates: Dormant gift cards can expire in as little as a few months. Be sure to check and confirm the validity period before getting one and ensure you either use them or convert them to cash before expiration.

Identification Needed: Some gift card redemption sites ask for tons of ID and documentation that makes their onboarding process cumbersome. On, redeeming gift cards follows a straightforward process with very simple steps. 


Safe Practices for Gift Card Conversion

Despite its convenience, gift card conversion is not without risks. The web is packed with scammers and shady platforms ready to prey on unsuspecting victims. Furthermore, the transfer of personal data and financial information carries its own set of dangers. Not adhering to certain practices for a safe and secure gift card conversion can land you in hot water as there can be legal implications.

Follow these tips to safely convert gift cards anytime:

1.    Research sites and companies before using them. Look for reviews, complaints, and signs of fraud. FlipEx has got several positive reviews on PlayStore and App Store.

2.    For online exchanges, only use sites that have secure checkout and data encryption. Look for the lock symbol by web addresses.

3.    When possible, register gift cards under your name and address to provide needed identification later.

4.    Carefully read all terms and conditions before conducting any gift card transaction. Understand any fees or balance requirements.

5.    Avoid public Wi-Fi and unsecured devices when managing gift card conversion online.

6.    Check gift card balances beforehand and use up remaining amounts under $10 to $20 before exchanging.

7.    Hold on to receipts and take photos for records in case of issues later on.


Detecting Red Flags in Gift Card Conversion

Recognizing potential red flags is a critical practice for a safe gift card conversion. Watch for these red flags when opting for a gift card conversion:

  1. Pressure to act quickly: Scammers try to create false urgency to get you to make mistakes. Always take your time and due diligence.
  2. Spelling errors and shady contact info: Typos, odd addresses, and generic emails are some signals of fraudulent sites.
  3. Asks for unusual payments.
  4. No physical address: Check that a business has a real-world address and customer service line.
  5. Too good to be true: Extremely high rates likely indicate a scam. Stick to reasonable rates. You can check out  FlipEx’s rate calculator to guide you on the current rate for gift cards.


Legal Compliance and Tax Implications

A few final tips when converting gift cards:

  1. Keep records of transactions for taxes and deductions. While gift cards themselves aren't taxable, cash received from reselling can be. For instance, in Nigeria, expect a ₦50 Naira stamp duty deduction on  funds received to your bank account based on CBN policies.
  2. Avoid violating card terms that prohibit resale of gift cards. Read all policies carefully.
  3. Consult a professional if you have questions about claiming losses on discounted gift cards. Deductions may be possible in some cases.



With vigilance and cautious practices, gift card conversion can allow you to recover value from unused cards and get cash or more practical gifts. But always exercise caution when pursuing third-party gift card exchanges, and be alert to the risks. 

Avoid hasty decisions, and take steps to verify legitimacy. Follow the tips outlined here, and you can turn your gift cards into money instead. For more general gift card information, check out these FAQs on FlipEx and for more enquiries please contact our support team, we are always here to help and guide you.


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