What Are The Pros and Cons of Gift Cards

What Is Gift Card Used For: [All You Need To Know]

What Are The Pros and Cons of Gift Cards

Do you want to know What is Gift Card Used for in Nigeria, USA and other countries?

Do you wish to know the Pros and Cons of Gift Cards and also What is Gift Card all about?

Worry no more, you’re in the right page. You’ll get to learn everything about Gift Cards here in this article.

A gift card is a form of payment used to make purchases at retail stores, gas stations, restaurants, and more.

You can spend the money in your gift card’s receipt in any accepted locations when you load some money into the card. 

Most retailers offer their customers a gift card to shop as money to friends, both online and brick-and-mortar variety.

There are two types of gift cards available, both forms come with a wide range of features and benefits.

And if you want to buy a gift card as a present for others during a special occasion or you want to buy them for yourself;

This will help you to recognize how they compare with other payment methods.

 

Gifts cards can be a suitable and appropriate substitute for cash when you want to make some purchases or give someone a gift.

It can be stored in stores or online; on the other hand, digital gift cards are designed to be used online or over the phone.

It can also be added to mobile wallets, which makes the purchase more effortless and secure.

But you should regularly check the physical and e-gift cards expiration date before you plan to reload the money. 

Gift cards can be categorized into two types, which are: Open-loop and Closed-loop.

An Open-loop gift card can be used anywhere the brand of the card is recognized.

For example; a Visa logo branded gift cards can be used to make purchases anywhere Visa is accepted. 

On the other hand, Closed-loop gift cards can only be used in specified deals.

So in case, if you purchase a gift card from Starbucks or Amazon.

The gift card’s receipt would only be used to make a purchase at the retailer issuing the gift card.

What is a Gift Card?

A gift card is a prepaid card that can be used to make purchases and execute other types of financial transactions.

Gift cards be open loop or closed loop, which can determine where and how the card can be used.

Things to Know About Gift Cards

Looking for What is Gift Card Used for? Here are the major things they’re used for and all you need to know about Gift Cards in 2024.

Retailers want you to use that Card

When you give a gift card as a present to someone, they tend to think of it as free money and splurge a little bit.

It’s a false assumption that retailers don’t want you to use their card so they can keep its entire value.

But the truth is that they prefer these cards to be spent. They make more money if they’re spent at the retailers’ store.

When any consumer retrieves a gift card, 65 percent spend an average of 38 percent more than the card’s value.

Storing Gift Cards on the Phone is a common thing now

Through mobile technology, many people are redeeming more and more gift cards.

It is easier to store a gift card on your phone than in stores.

Some stores allow their customers to take a picture of the card and store it along with the recorded balance. 

You can shield some Gift Cards from Robbery and Loss

Some gift card issuers claim that the cards were as easy to spend as cash.

But unfortunately for some consumers, cards are like cash in another form, if it’s lost or stolen, you’ll lose it permanently.

However these days, you can get these with bank-branded cards and register the cards with the issuer to protect them from loss or theft.

The funds will be replaced in case they are lost or stolen.

There is a Treatment for Cards that don’t Work

Sometimes when you step up to the register and pull out the gift card, and get to know that it’s not good or much worth it than promised.

When you activate the gift card, you don’t activate them correctly.

But the slip of paper, a gift card giver, the person who bought the gift card can, at last, prove that the card was activated.

You can quickly return the malfunctioning gift card.

And if it’s a store gift card, you can take it back to the store.

Then if it’s a bank-branded gift card, you can contact the toll-free number on the back of the card. 

There are Generally Two Kinds of Cards and Two Menus of Fees

You have to often pay the purchase fee for the card that carries the credit card brand name.

In return for that, you can use them at any place that accepts that card brand.

And if you buy a gift card at or any particular retailer, you only have to pay the card’s face value.

But you can use that gift card at the specified retailer and sometimes at affiliated businesses.

Most gift cards don’t have expiration dates, activation payment, or dormancy fees, and banning them in the first year. 

You can Stretch More out of Cards 

If the gift card is $50, can it be worth more than $50? You can use it to score a discount or free shipping.

Most of the retailers have moved to this digital-and-physical environment.

So, if you’re purchasing with a gift card, shop both the trick-and-mortar location and the store’s website to see if one of them will offer a discount, free delivery, or free shipping. 

You have to Treat them Gently 

Most of the plastic gift cards still utilize magnetic stripes, like pre-chip credit cards.

Those stripes can occasionally get demagnetized by other things that you regularly carry in your pockets or purse and some other cards include a scratch-off panel.

So, if you are too vigorous or use something too sharp accidentally, you can remove the numbers underneath.

And other gift cards which are made of paper or thin cardboard, you should put them in a separate envelope and be super careful.

 

Read Also: Where to Buy Gift Cards in Nigeria 2024

Can Gift Cards be Used as Gifts or Presents?

Yes, gift cards can be used as gifts or presents to your customers, loved ones and friends.

If you are not sure about what you should get for the special people in your life, gift cards are the best choice and make great presents for several reasons.

Here are some of the reasons why gift cards are the perfect gifts:

You can easily stay on Budget

When you give someone gift cards as a present, you don’t have to be worried about spending too much on something you are unsure would be perfect for another person.

With gift cards, you can decide on an amount, and with that, you can easily stay on budget.

It’s more like having cash in your hand for a specific store.

You can Save with Discounted Gift Cards and Trade-ins

You can save a lot more when you give someone a discounted gift card, like when you give someone a $5 or $10 discount off their face value.

This can work very well with the restaurants and cafes.

Many dining establishments know that if some customers are coming in with a gift card, they are likely to spend more than what’s on the gift card.

So, it is a great idea to get them food and look for discounted gift cards.

Flexibility 

Gift cards are flexible as the recipient can choose an experience of a new thing.

They also can choose and buy anything of their choice.

It also takes some of the buyer’s anxiety that is associated with finding just the right gift.

Cash is a flexible option, but sometimes it is considered a little dense.

So, giving a gift card is always a more flexible option.

An Element of Thoughtfulness 

Many people dislike gift cards because they are often considered so general.

Getting a prepaid debit card or general gift card is very convenient because some people think that the gift cards are impersonal.

But the gift card doesn’t have to be impersonal, though.

Gift cards are the perfect and most straightforward way because they combine the flexibility of cash with the personalization that comes with a specific store.

Gift Cards build Brand Awareness

Gift cards are a cost-effective advertising method that helps to keep your business top-of-mind within your market.

Traditional types of plastic gift cards offer wallet-sized advertisements to share your company’s motive and message, and they will cost you a lot less than a life-size billboard.

Virtual gift cards are convenient and can help promote your brand messages with your customers online

Gift Cards improve Cash Flow

Gift cards improve the cash flow of any business, especially versus other marketing techniques.

Traditional marketing tactics that have a proven return on investment require time to produce results.

So, selling gift cards allows you to generate revenue in advance of providing products or services.

 

Read Also: Top 10 Gift Cards Rates in Nigeria Today

Some of the Cons or Disadvantages of Gift Cards

1. Feels Impersonal

Gift cards can feel impersonal when someone else has gifted you as a present.

It is fun to predict what each person will give you, and personalized gifts can add feelings to the relationship.

A gift card can feel tacked-on like it was just picked randomly without making any effort.

So maybe you can add something like a handwritten note to cover the base or attach it to a small, personalized gift.

2. Useless Small Balances 

The biggest problem with gift cards is the collection that contains sixty-eight cents in store credit.

When a person stays under the balance of the card, they are more likely to end up with a useless amount of money.

With this, they are too disinclined to throw it away and may not have every intention of using them or they can easily be forgotten when there’s so little utility left. 

3. Fees and Conditions 

Some of the gift cards include fees and conditions.

There are no hard or fast rules while issuing the gift cards, but different places will place different restrictions on their gift cards.

Sometimes the rules are different when used online and in-person, or the credit can’t be used towards the more popular items.

You can do a little research ahead of time, and maybe it’s best to pass on the card when you’re too busy or confused to choose anything for a present. 

Types of Gift Cards 

1. Closed Loop Gift Cards

Closed-loop gift cards are usually marketed by stores, allowing cardholders to purchase anything they like from the specified retailers.

They can generally only be used with a single merchant, either at the store or on its website.

However, if one company owns several different retailers, it might issue different gift cards that can be used at any of them. 

Activation fees are usually not necessary in closed-loop gift cards.

On the other hand, these gift cards will not have a processor’s logo, but they will include the merchant’s, which acts as a form of advertisement for the store.

Closed gift cards are usually not reloadable, so they cannot be further used for the purchase after the balance is spent.

Closed Loop cards can also have a specified expiration date, which requires the user to use the card within a specific timeframe.

They are more popular gifts for wedding and baby registries. 

2. Open Loop Gift Cards 

Open-loop gift cards are offered as the equivalent of cash, and more importantly, they can be used at any merchant where that card is accepted and online.

Many central and credit card issuers/ processors like American Express, Visa, Discover, and Mastercard offer open-loop gift cards.

They will display the payment processor’s logo and can be used to make all the electronic payments neatly anywhere. 

Open-loop gift cards serve as a standard prepaid cards.

These cards are usually reloadable and allows users to fund on their own as well.

But these cards can require an activation fee that must be paid when the card is purchased.

3. Digital Gift Cards

Digital gift cards are known as E-codes (Electronic-codes gift cards).

The Gift vouchers from retailers are provided to you through email.

Digital gift cards work just like regular gift cards. However, a code is emailed to you in a digital gift card.

You can also use this code online and in the store, depending on the retailer.

These cards are very effective when you have an indecisive buyer in the store.

Most physical gift cards brands and retailers also offer digital Ecodes.

 

Read Also: What are the Pros and Cons of Gift Cards

How To Sell Gift Cards For Cash in 2024

Do you have any type of gift cards for sale? There’s a good news for you!

You can now Sell/Redeem/Trade your gift cards here on GiftcardstoNaira and get paid instantly into your Local bank account.

GiftcardstoNaira is the best gift card trading platform where you can sell your gift cards and get paid in Naira or Cedi.

We offer the best and highest gift card rates for all gift cards in Nigeria and Ghana.

To start trading your cards, quickly visit Giftcardstonaira.com or download our mobile app here.

How To Trade Gift Cards On GiftCardsToNaira App

If you want to sell your gift cards, visit our website or download the Giftcardstonaira app from google play store or apple app store.

After downloading the app or visiting the website, follow the steps below to sell your gift cards at the highest rates.

Below is the step-by-step guide on How to Trade gift cards using our Gift Card Trading App.

  1. Download the Giftcardstonaira Mobile App from Google Play Store or Apple Play Store.
  2. Create an account and “Sign Up”, then “Log in.”
  3. Navigate to “Wallet” and click on “Add new account” to add your bank details.
  4. Go to “Dashboard” and click on “Sell Gift Card” to Submit your gift card.
  5. Wait for 5 minutes or less for the card to be Confirmed.
  6. After Confirmation, check your Wallet for your Cash.
  7. Then Withdraw to your direct Bank Account instantly.

What are the Most Popular Gift Cards [2024]?

Here is the list of most popular gift cards today with the highest rates in 2024.

Conclusion 

Gift cards make a great present for anyone and can be a good substitute for cash.

If you are still aren’t sure about the gift ideas for people in your life, gift cards make a good choice.

You can easily stay on a budget and save a lot with discounted gift cards and deals.

They are flexible and easy to present attractively.

They can be used to purchase at retail stores, gas stations, restaurants and other locations.

Gift cards can be of various types and you can choose gift cards of your choice.

If you’ve been looking for What is Gift Card Used For? Then this is all you need to know about Gift Cards in 2024.

If you have any card already, you can sell them now on our platform and get instant Cash payment in Cedis or Naira.

Quickly visit our website and create account or download our mobile app to start trading your gift cards immediately.

We offer the highest rates for all gift cards and you’ll enjoy Peace of Mind once you start trading with us today.

Happy Trading!

 

Read Also: 10 Facts About Gift Cards in 2024 [Fun Facts]

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