I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it.
Yet somehow, there are five funded companies in this space?!
Anyone who has a business that could use gift cards should offer them. On average, gift cards will leave anywhere from 10% to 30% of the original total unused (depending on products the card can purchase and the total cost of the card).
These companies that are trying to solve the 'problem' (they are definitely not a problem if you are the one selling them) of unused gift cards may run into problems of their own. Read the back of most gift cards and you find that just like concert tickets, they are non-transferable, non salable, and have no cash value. While it would be incredible difficult to prove a certain gift card was transfered or sold, upset card sellers may be able to go after the companies facilitating the selling (pure speculation).
Personally, I don't think that unused card trading companies will take away much of the profitability of gift cards, but it also may make consumers feel more comfortable buying gift cards.
Either way, unused gift cards are very real, and if you can, you should look into selling them.
As a consumer, gift cards are never a very good idea.
Gift cards are often better than an interest-free loan.
In some/many states (not CA), the issuer can impose "inactivity" charges. Yup - while it's sitting in your drawer, they get to bleed the card's value down to $0.
I think this is a pretty common story especially if kids are involved.
I, however, do not drink coffee. After being introduced to Cardpool through YC, my problem was solved. Money in my pocket. :-)
Also (and this is a bit more abstract), I buy myself iTunes gift cards in $20 chunks so that I don't just bleed away $0.99 at a time by buying music straight through my credit card. If I can get iTunes cards at a discount from a site like this, it's a win for me.
I generally try to spend the full value of the card at once otherwise I end up with cards with random amounts, lose track, and eventually forget about them.