Ryan Brennecke / The BulletinJay Patel, of Redmond, holds a handful of gift cards he purchased online and to resell as part of a business his older brother left to him after going off to college.

With the holidays approaching, some consumers may find themselves inundated with gift cards.

However, Central Oregon residents can exchange their unused gift cards for cash, thanks to a business pioneered by a couple of Redmond high schoolers.

Jay Patel, a junior at Ridgeview High School in Redmond, is the owner of Gift Card Buyer, which exchanges cash for unwanted gift cards across Central Oregon.

Patel said his brother Harsh founded the company around 2½ years ago, while he was in high school. After Harsh left to attend college at University of Washington, he left the business to Jay Patel, then a sophomore.

Jay Patel said he initially followed in his brother’s footsteps in operating the business. But as he’s gotten more comfortable with the business, he said he’s started marketing the company to help it grow.

“Now, we’re getting gift cards daily, so it’s pretty consistent,” Patel said.

He added that he’s inspired by his parents’ example in building a better life for themselves. Patel’s parents immigrated from India, and his family lived in a small house in Portland before moving to Redmond in 2005. Ashish Patel, Jay’s father, said he moved the family to Redmond in order to take the hotel manager position at the Redmond Inn, on S. U.S. Highway 97. While Ashish Patel said he largely lets his sons run their business their way, he added that he approves of his sons striking out on their own.

“I’m proud of my son, as long as he’s not asking me for money,” said Ashish Patel, laughing.

According to a survey conducted in November by the National Retail Federation, 56 percent of shoppers plan to give at least one gift card during the holiday season. According to a 2015 study by CEB Financial Services, the gift card industry was projected to generate nearly $130 billion in the United States that year. However, approximately $973 million of that goes unredeemed, according to the same study.

Exchanging gift cards from large retailers for cash is not a new industry, and there are several online marketplaces, such as CardCash and CardPool, that allow users to sell their gift cards. Still, Patel said people often receive gift cards for stores they aren’t interested in or able to use.

“People would rather have hard cash than gift cards,” Patel said.

Gift Card Buyer largely operates through Craigslist, posting advertisements offering cash for unwanted gift cards. Patel said the company registered with the city of Redmond, although Gift Card Buyer is not registered with the Oregon Secretary of State.

Patel said the company typically offers to buy each gift card for around 70 percent of the card’s balance. Once a deal is struck, he said he’ll meet the seller in a public place and confirm that the gift card is legitimate. From there, the company sells the cards back to one of the online marketplaces.

Patel said he wants to expand beyond Craigslist, and is hoping to get a website up and running by the end of the year. Additionally, he’s planning to lease space on a billboard on U.S. Highway 97 to advertise the business.

“The website and the billboard are going to help more people see it,” Patel said. “Not everyone goes on Craigslist.”

He added that he won’t be continuing the business after he leaves for college next year. His plan is to keep it in the family, passing it on once more to his brother Dhruv, now 13.

—Reporter: 541-617-7818, shamway@bendbulletin.com