Gift Cards - Definition & Use Cases
Gift cards have become one of the popular ways of providing gifts and rewards. It’s considered to be the cash alternative. With gift cards, users can purchase specific things or goods from a particular shop or brand. It’s the most convenient way to give someone the freedom to choose the gift on their own. Some shops or brands may provide temporary gift cards as a reward for purchase. These cards are normally used to give discounts. Let’s find out how does gift cards work.
What is a gift card?
A gift card is a prepaid card authorized by an individual brand or store. It's only usable to purchase from the gift card owner's store. It's an alternative to traditional gifts giving and receiving. North America recognizes gift cards as gift certificates. In contrast, the British called it a gift voucher or gift token. Whatever the name, the purpose of the gift cards remains the same.
Types of Gift Cards
There are two main forms of gift cards available, which are physical gift cards and digital gift cards. Both serve the main purpose, while digital gift cards are coupon codes. Let’s have a look at a few popular gift card types:
1. Retail Gift Cards
Retail gift cards are usually prepaid cards issued by particular stores, brands, or online platforms. They are only usable at the retailer that issued them. Sometimes, retailers customize those cards for gifting occasions. These types of cards enable customers to shop for those items they truly want. They're suitable for both in-store and online purchases.
At the same time, users can choose the specific amount that fits their budget. Amazon is one of the trending online platforms that provide gift cards. However, Walmart serves its customers online and in-store with gift cards.
2. Restaurant Gift Cards
Restaurant gift cards are also prepaid but designed only for restaurant use or dining establishments. These types of cards are excellent choices for food lovers. They are valid at the issuing restaurant or in its chain. Many providers offer takeout or delivery, while few cards are available only for dining.
It's a perfect solution for food enthusiasts. At the same time, gift cards are an alternative to casual treats or flexible gifting. Starbucks, Chipotle, Cheesecake, and many more popular restaurant gift cards are leading the way.
3. Prepaid Gift Cards
Prepaid gift cards are universal payment cards preloaded with a specific amount of credit. It's not like typical retail gift cards or restaurant gift cards. You can use them anywhere that supports major credit cards like Visa, Mastercard, or American Express. As it's not a brand or retail owner-based card, you can use it anywhere.
Prepaid gift cards are reliable options for travellers. Besides, it's a secure gifting option since it’s limited to the preloaded balance. Visa, Mastercard, and American Express are the most popular gift cards worldwide.
4. Digital Gift Cards
What are digital gift cards, actually? Digital gift cards provide electronic versions of traditional gift cards and deliver them in no time through email, SMS, or mobile apps. It's an eco-friendly solution and a fast, convenient way to send gifts to someone. Digital gift cards have customization options like personalized messages and designs with scheduling delivery. You can even redeem them in physical stores and online. Google Play and Apple Play gift cards are most popular among users. Amazon eGift cards are also trending in the digital cards segment.
5. Subscription Gift Cards
Though companies design subscription gift cards as one kind of prepaid card, they aim to cover the cost of subscription services. They enable users to enrol in premium memberships or services like entertainment, software, or lifestyle benefits.
Service-specific subscription cards are also available for specific subscription services, such as Netflix or Spotify. Subscription gift cards are a perfect choice for those who love streaming, gaming, or online tools. Netflix, Spotify, Xbox Game Pass, and Adobe Creative Cloud are popular platforms that offer subscription gift cards.
6. Gaming Gift Cards
Gaming gift cards are game-oriented gift cards for gamers to purchase games, in-game content, or memberships on specific platforms. It's exciting for gamers to give gifts to each other and arrange giveaways.
When it comes to gifting someone, gaming gift cards allow them the freedom to choose what they want. These cards are mainly redeemed for virtual items, skins, or currency in games. However, PlayStation Store, Xbox, Steam Wallet Code, and Nintendo eShop gift cards are the top favourites of gamers.
7. Travel Gift Cards
Travel gift cards are a kind of prepaid card dedicated to travellers. They give travellers the freedom to plan their travel adventures, accommodations, and experiences. It's flexible to make a travel plan while keeping the budget in mind.
Travel gift cards are redeemable for flights, hotels, car rentals, and vacation packages. Though certain airlines or hotels limit few cards. However, a wide range of travel-related services accept most of the cards. Expedia and Travelzoo gift cards are worldwide popular as travel gift cards.
Benefits of Gift Cards
Gift cards offer a range of advantages to consider it one of the popular gift sending options in this digital era. After Covid-19 pandemic online purchase increased significantly. This demand pushes companies to proceed with online gift card services.
The best benefit of using a gift card is its flexible usability. It gives you the choice to select the thing you truly want. At the same time, it reduces cash carrying dependency everywhere as it's available for both online and in-store purchase.
If you're looking for something to give instant, gift cards are the most convenient option to consider. It's ideal for birthdays, anniversaries, and corporate gifting with personalized messages and greetings. Interestingly, these are budget friendly solutions as senders have the option to set the gifting amount.
How to Buy Gift Cards
Buying gift cards is easy and convenient. Whether you're a shopping enthusiast, food lover, or gamer, gift cards will help you enjoy your desired things. Planning a budget and limiting gift amounts is also beneficial with gift cards.
Most gift cards have options like $10, $25, $50, or custom amounts. The purchase method is also flexible. Physical gift cards can be purchased from specific stores, supermarkets, or branded outlets. On the other hand, digital cards are available online and delivered through SMS or email.
During purchases, recipients should check expiry dates, fees, and location restrictions. It's important to check if your card is accessible in the places where you usually purchase goods or services.
Gift Cards Security and Scams
Even though gift cards are convenient and popular, they have some limitations and security issues. Scammers can easily target them. The hardest thing is that gift card scams are hard to track as they're fungible.
There are many possible ways that gift cards can scam you. Fake customer service calls are one of them. Scammers pretending like customer service representatives and request card details as verification. Providing information helps them access your card and steal your credits.
Fraudulent websites also request your personal information for a discount. Phishing emails and messages are another way to steal your sensitive information.
However, purchasing gift cards from trusted sources is mandatory to avoid scammers and keep the fund safe. Buying from third-party sellers or auction sites is always risky. Also, card inspection is important to ensure the card is intact. Lastly, keep the information secure and don't share card information with anyone.
FAQs
1. What is the most popular gift card to give?
The popularity of gift cards depends on the recipient's preferences. Yet there are few top-selling popular gift card stands in the market. Amazon gift cards are leading the table of popularity. Walmart, Sephora, Starbucks, and Google Play are also trending popular gift cards.
2. What are gift cards used for?
Gift cards have a lot of versatile and practical use cases. People mostly use them for shopping and gifting. Nowadays, online and gaming purchases with gift cards are becoming popular. On the other hand, gift cards are widely provided as rewards and incentives.
3. How do I check my gift card balance?
Different gift cards use different ways to check the card's balance. Recipients can easily check the balance of online gift cards on the card issuers' website or mobile apps. However you have to visit the store to check your in-store gift cards balance. Few service providers may let you know the balance over the phone call.
4. Do gift cards work on internal stores?
It depends on the type of the cards and the store’s/authorities policies. Prepaid cards like Visa or Mastercard are widely acceptable including internal stores.
Conclusion
Gift cards have become a modern solution for gifting and purchasing with freedom of choice. Whether the occasion is a birthday or holiday, gift cards are suitable everywhere. They have a variety of use cases, such as shopping, gaming, restaurants, digital goods, travel, etc.
Along with enjoying the ultimate benefits of the cards, users should be aware of fraud and scammers. Getting scammed with a gift card is easy as it doesn't have any major security and tracking options