AUSTRALIANS risk losing billions of dollars on gift cards by not redeeming them, according to new research.

Two in five people (39 per cent) have unused gift cards lying around with a national total worth of $1.9 billion, says comparison website Finder’s survey of 1086 respondents.

The research found those with gift cards have an average of $243 sitting in drawers untouched.

Graham Cooke, Finder’s head of consumer research, said gift cards are a popular choice for presents, but more than a third go unused.

“Gift cards are a practical gift if you’re unsure of what someone will like or use,” he said.

“However, by not redeeming them, you’re essentially giving that money back to the retailer, and losing out on a great deal of savings.”

The data shows three in 10 people (29 per cent) have been unable to redeem a gift card: one in five (22 per cent) couldn’t redeem their gift card as it had expired, six per cent misplaced it, and two per cent were unable to cash in on their gift card as the company was out of business.

That’s equivalent to 5.8 million people who have missed out on an opportunity to use their credit.

“Up until recently, retailers could issue gift cards with an expiration date as short as six months. Thankfully, they must now allow you to use the card for a minimum of three years,” Cooke said.

“It is illegal for retailers to issue cards with an expiry date shorter than this. If a retailer rejects your card within a three-year period, lodge a complaint. If they still won’t honour the credit, reach out to your local consumer body. Additionally, retailers may not charge any additional fees to use the card after it is issued.”

Millennials tend to have the most unused gift cards – with half (49 per cent) holding on to them, compared to 31 per cent of gen X.

Cooke said there are ways to make the most of your gift cards.

“Set a reminder on your phone for when the card expires so you remember to use it.

“Take a picture of the front and back of the card with your phone. In many cases, the details on the card will be sufficient to use the credit in the future if you lose it.

“If you’ve been given a card you don’t think you’ll use, consider re-gifting or selling it to friends, family, or online marketplaces. This will help you recoup some of the value that would have otherwise been lost.

“Remember, if you decide to resell it online, don’t use a picture of the card’s numbers or else it could be skimmed.”