What is Gift Card used for? Always hearing your friends talking about their gift cards and cashing in their gift cards? It sounds very strange to you, doesn’t it?
Well, gird your loins, because after reading this article you will know everything that you need to know about gift cards.
From iTunes to Amazon, and many others, there are a lot of options out there to choose from.
In this article, we shall bring the most basic and necessary information on gift cards, their uses and the great part, the fascinating benefits you can be offered. So let’s go.
Gift Cards- what are they?
Gift cards are simply prepaid cards that can be used to purchase goods and services at a specified value, usually given by a bank or services providing organizations to be used within a particular store or business.
It is a very reliable substitute for cash when you wish to make purchases either online or without a credit card for yourself or a friend.
A gift card can either be physical (as a card) or digital (to be used online). Physical gift cards, probably the most popular kind, can be purchased at the desired company, such as Amazon or Walmart at stipulated prices.
It works in the same way as a credit card. Digital gift cards, usually the ones you can get online with any legit app or website, works using a unique gift code number that can be used to purchase online at the retailers’ website.
It is not only companies that issue out gift cards. Many major restaurants such as Chili’s, Chipotle, etc., provide both digital and physical gift cards to customers that can help them pay for their meals either online or through an in-established card reader.
You can also decide to store codes for digital gift cards in a mobile wallet, such as Google Pay, PayPal’s Venmo, etc.
Forms of Gift cards
There are also open-loop and closed-loop gift cards. Open-loop cards can be used anywhere the brand of the purchased card is accepted, such as Visa. Closed-loop gift cards can only be used at the specific retailer where it was purchased, for example, Amazon.
It is necessary to always check for expiring dates of these cards, although federal laws have granted usage of gift cards for about five years before expiration. Also, you have to constantly use your gift card, if not, you will be charged an inactivity fee.
Uses of gift cards
Here are the uses of gift cards:
- To purchase goods and services without cash.
- To gift friends and relatives.
- To motivate staff workers in the the the company.
- To promote a business.
- Benefits of a gift card
- Alternative form of payment.
- Controls spending.
- More convenient to use.
- Freedom to choose what you want.
- Safer and can be tracked.
With these advantages that gift cards offer, there tend to be one of the best ways of transactions and gifting your loved ones with the right gift. Bookmark us for more.