In one or two instances, you might have come across the word “Gift Card”. Have you ever stop to think about what a gift card is exactly? The types of gift cards available and what each stands for?
A gift card is a gift token or a paid-off debit card or Voucher given by a retailer or a bank. This gift card can be used for purchasing other items in place of cash.
A gift card is also sometimes called a cash card. The gift card can be an open looped or closed-loop, depending on where and how it is used.
What is a Gift Card?
A Gift card is usually a gift, that is offered in place of an object that the recipient may not need. A gift card can be general or specific in nature depending on how it is being used
Types of Gift Card
There are primarily two types of gift cards, which are the:
- Open-loop gift card: The open-loop gift card of cash—or more precisely, a credit or debit card that can be used at any retailer or vendor where that card is accepted, and also online
- Closed-loop gift card: A closed-loop gift card is usually given out by stores, that allows the gift cardholder to buy anything from that specified retailer. Closed-loop cards generally can be used only with a single merchant, either at the store or on its website.
How does a gift card works?
Having a gift card is one thing, understanding how to make effective use of it is another. An open-loop gift card can be used to withdraw cash at an ATM if the card allows while a closed-loop gift card is used to purchase items from stores that offer it.
Does a gift card expires?
A gift card may expire if the money loaded onto it is not used within a specific period of time one may also pay some amount of money to activate a new gift card or reload money onto an already existing gift card.
Where can I get a Gift Card?
You can find a gift card in the following places:
- cruise ships
- barber shops
- Train companies
- Theme parks
- other type of companies
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