What Are The Pros and Cons of Gift Cards in 2023?
What are the Pros and Cons of Gift Cards in 2023 are among the most frequent questions individuals usually ask.
Many People, including customers who have a gift card or those gifted with a gift card, tend to ask the same questions.
Here on this page, you will learn about the drawbacks and benefits of gift cards for customers.
Today, nearly every retailer offers gift cards to customers to help them shop or gift their friends.
The following are some of the questions people also ask from the recent search queries.
- What are disadvantages of gift cards?
- What are some advantages of gift cards.
- List of gift cards and their uses.
- What are Pros and Cons of using gift cards?
- What are the Benefits of gift cards for customers?
These are a few of the questions people ask regarding the pros and cons of gift cards; hence, I will be giving you the possible answers to them here in this article.
Although gift cards are the most unique, perfect, and risk-aversive type of plastic card, they can also be beneficial.
However, as the old saying goes, “everything that has a disadvantage has an advantage.”
While gift cards have many advantages over other ways of gifting or transaction, they also come with some limitations.
As a gift card trader, you need to know these advantages and disadvantages of gift cards.
I will show you the various essential pros and cons of a gift card.
I Hope you are ready to see them, right? Read on.
Before we continue, let’s quickly see What gift cards are, types of gift cards and how gift card works.
What are Gift Cards?
Gift cards, which are essentially prepaid cards, allow you to purchase items from a store without using cash.
The store may have a different value of card required, which means the value of the cards varies depending on the store.
While there are some companies, such as American Express and Visa, that can be used everywhere.
Yet, most store gift cards are limited to the products and services offered by the store.
For example, you can’t use a Sephora gift card to purchase on Footlocker store or make any Footlocker purchases.
History of Gift Cards
Neiman Marcus, a wealthy man who owned a luxury department store, created the first gift cards in 1994.
Blockbuster entertainment began to sell its gift cards in 1995.
Since then, the market has experienced a steady rise, with the projected market reaching an all-time high of $1.6 trillion by 2026.
How Gift Cards Work
A gift card can be used as a payment method to purchase items at restaurants, gas stations, or other places.
The gift card can be loaded with money that you or the recipient can use to make purchases at any of the accepted locations.
An open-loop gift card can be used wherever that particular brand of card is accepted.
If you have a gift card with the Visa logo, you can use it to purchase products or items anywhere Visa is accepted.
Closed-loop cards, however, are only allowed to be used at specific merchants or particular retailer stores.
If you buy a gift card from Amazon or Starbucks; Then you or the recipient can use it to make purchases at the merchant issuing the card.
However, there are two types of gift cards: Physical cards and Digital cards (e-gift cards or e-codes).
Each has its characteristics and uses; let’s see their differences.
Physical Cards vs. Digital Cards
As the name implies, Physical cards are plastic gift cards that merchants issue to their customers to buy in their stores or gift to other people so they can use to buy.
Digital cards don’t have physical forms but a unique gift code that can be used to redeem the card at online retail stores.
One important thing to note is that physical gift cards can be used in physical and online retail stores, while digital cards are mainly used only for online stores.
The Pros and Cons of Gift Cards in 2023
The following are the different Pros and Cons of using gift cards; let’s see them below.
Pros of Gift Cards
The pros are the benefits and advantages of gift cards, they include;
- Gift cards make gifting simple; it’s a great way to gift for holidays and special events.
- Gift cards encourage the recipient to purchase something for themselves, rather than cash gifts that can be used to pay bills.
- To make extra cash, they can be traded on gift card trading platforms like GiftcardstoNaira.
- Some stores offer discounts for gift cards, and they are easy to use.
- Gift cards can serve as an alternative payment method to cash and prepaid debit cards.
- Gift cards can be used to manage spending and avoid bank fees.
- Gift cards are extremely safe because they can be frozen in case of theft or loss without affecting the money inside.
Cons of Gift Cards
The cons of gift cards are the limitations and disadvantages of gift cards, they include;
- Gifting restricts the options available to the receiver.
- People don’t enjoy shopping so going to the store can be stressful.
- Many people consider gift cards as impersonal gifts.
- Gift cards become useless when the stores close down.
- Extra charges may apply to gift cards such as Visa and Amex that can be used almost anywhere.
- Gift card can be lost forever if you misplace or lose the card, especially if the card has not been registered and you don’t have the gift card number.
- If you do not use your card for 12 consecutive months, you could be subject to an “inactivity fee.”
- It is possible to forget a small amount of the money on your card after purchasing. This money can be wasted.
- Closed looped gift card cards limit your purchasing power as they are not accepted in all retail stores.
- Reloading gift cards that are reloadable could result in additional fees.
Read Also: How to Sell Gift Cards in Nigeria (2023)
Gift cards sound great in principle, but it is crucial to weigh the pros and cons of using gift cards to make the right decision.
Now that you’ve gotten to know the advantages and disadvantages of gift cards, would you mind getting one as a gift?
If you got any unused gift cards or received a gift card as a gift, you can always sell the gift cards for cash on GiftcardstoNaira.
When you sell or trade your gift cards on our platform (Giftcardstonaira.com), you will receive an instant cash payment in Naira or Cedis.
So if you’re still asking, What Are The Pros and Cons of Gift Cards in 2023? Here you have it.
Take note of all these pros and cons so that you can sell your gift cards anytime, any day.
And don’t forget to always sell your gift cards on GiftcardstoNaira; we buy and accept all kinds of gift cards.
You get to sell at the best and highest rates when you trade your gift cards with us.
Make us your gift card trading plug today, and you will be glad you did.