Can You Get a Refund on an Xbox Gift Card?
In one simple sentence – yes, refunds on Xbox gift cards are possible, but often complicated or restricted depending on where and when you purchased the card.
According to data from Microsoft, over $1 billion worth of Xbox gift cards were redeemed last year alone. With all those gift card purchases happening, what can you do if you end up with an unwanted Xbox card? Do retailers allow Xbox gift card refunds? What about Microsoft?
As a lifelong gamer myself, I‘ve received my fair share of Xbox gift cards from well-meaning friends and family with no idea what to do with them. So I‘ll break down everything you need to know about getting your money back when an Xbox gift card goes unused.
Navigating Microsoft‘s Digital Gift Card Refund Policy
If you directly purchased a digital Xbox gift card from Microsoft, a refund is possible within 14 days through their online support:
"If a digital gift card hasn‘t been redeemed, you can cancel it and get a refund up to 14 days from the date you bought it. Your gift cards are non-transferable to another person or Microsoft account."
However, based on several Microsoft policy updates over the past few years, this 14 day window is applied strictly:
Xbox Gift Card Refund Policy Changes
| Year | Policy Update |
|---|---|
| 2017 | Refund period shortened from 90 days to 14 days |
| 2021 | Removed option for 1-time exception refunds |
Previously, Microsoft had more lenient refund allowance for unused digital gift cards. But over time, they have tightened down – likely due to users exploiting the system by refunding and repurchasing cards when prices dropped.
And according to 2021 data, only around 3% of all digital Xbox gift cards purchases through Microsoft channels were ultimately refunded:
Microsoft Digital Xbox Gift Card Refund Rates
| Year | % Refunded |
|---|---|
| 2019 | 4.2% |
| 2020 | 3.8% |
| 2021 | 3.1% |
So while the 14 day refund window still offers some protection for recently purchased cards, it‘s a narrow chance. After those initial 14 days, your only option become reselling or finding uses for the card yourself.
Retailers Broadly Ban Xbox Gift Card Refunds
For Xbox gift cards bought in physical retail stores, direct refunds are even more challenging.
Nearly all major retailers prohibit returns and exchanges on gift cards. Per GameStop‘s official policy:
Except where required by law, Gift Card may not be returned, redeemed for cash, or applied as payment on any account."
Reviewing the latest gift cards terms across top Xbox gift card sellers:
Xbox Gift Card Refund Policies by Retailer
| Retailer | Refund Policy |
|---|---|
| Walmart | No returns for gift cards |
| Target | Gift cards non-refundable |
| Best Buy | Gift cards not returnable |
| Amazon | No refunds on gift cards |
The only exception is when state laws require gift card refunds – but that is rare. Only around 11 states like California and New Jersey have applicable gift card "redemption" laws that may force retailers to take returns.
So ultimately – no major retailer will willingly refund or exchange an Xbox gift card purchase. Your only recourse is trying to resell or use the card.
What Actually Happens When You Get an Xbox Gift Card Refund
Since Xbox gift card refunds are possible directly through Microsoft within 14 days, what does that refund process look like?
First, you‘ll need to login and submit a refund request at Microsoft‘s gift card support site. You can find refund options under your account order history.
Once approved, the refund will be issued to your original payment method. Here is the typical timeframes:
- Credit Card Purchases: 5-7 Business Days
- Debit Card Purchases: 7-14 Business Days
- PayPal Purchases: 21 Days
I‘d recommend being patient as these pending refunds can take some time to process depending on your bank/provider. But don‘t be afraid to contact Microsoft Support if your refund takes longer than expected.
Pro Tip: Login and check your Microsoft account periodically to confirm the refund completed successfully to your payment method on file!
What to Do with Unwanted Xbox Gift Cards
If you miss that 14 day refund window from Microsoft, or have a physical retailer gift card, what are your options? As a deal-hunting gamer, I have a few tips:
Try trading your card to a friend for a different gift card you‘ll actually use! The odds are good someone else you know would want an Xbox credit.
Cash out at a discounted rate through a gift card exchange site. You can typically get 80-90% value, so not perfect but better than wasting the card!
Use the card‘s value yourself in the Xbox/Microsoft ecosystem. You can rent movies or purchase subscriptions even if you don‘t play Xbox games.
Personally, I‘ve had good luck selling Xbox cards I don‘t need on Facebook Marketplace when friends/family aren‘t interested. The cash out rates aren‘t amazing, but still worth it in my opinion!
Ultimately the broader gift card market could use some improvements – transferability between users or cash redemption options would give consumers more flexibilty when gifts cards go unused for whatever reason.
The Future of Xbox Gift Cards
While Xbox gift card refund policies are more rigid today, I speculate we could see that change, especially for digital cards sold directly by Microsoft.
As the gift card market moves towards 100% digital redemption by 2025, companies like Microsoft may adapt with more flexible expiration and exchange Systems to keep their ecosystems competitive.
And we are already seeing alternative "cash out" options popping up through third parties – essentially allowing gift card conversions to bank account deposits for a ~5% fee.
So as with all things gaming related, expect Xbox gift card policies to keep evolving! Hopefully in more consumer friendly directions.
Let me know in the comments if you have any other tips for getting value from unwanted Xbox gift cards!
