Gift Card
What Is a Gift Card?
A gift card is a prepaid payment card loaded with a specific amount of money that can be used to make purchases at a particular retailer or group of retailers. Gift cards are often purchased as gifts and used as an alternative to cash.
The value stored on the card decreases as purchases are made.
Why It Matters
Gift cards provide a convenient way to give someone purchasing power without selecting a specific item. They are widely used for birthdays, holidays, and promotions.
Gift cards also allow retailers to offer flexible payment options for customers.
How Gift Cards Work
Gift cards are loaded with funds at the time of purchase. The card can then be used to pay for goods or services until the balance reaches zero.
Gift cards may be issued as:
- physical cards
- digital cards
- mobile wallet cards
Each purchase reduces the available balance stored on the card.
Example
A customer purchasing a $50 gift card from a retail store can use the card to buy merchandise until the balance is fully spent.
Gift Card vs Debit Card
- Gift cards hold prepaid funds limited to certain retailers.
- Debit cards withdraw funds directly from a bank account.
FAQs About Gift Cards
Do gift cards expire?
Some gift cards may have expiration dates depending on issuer policies.
Can gift cards be reloaded?
Certain gift cards allow additional funds to be added.
Can gift cards be used online?
Many gift cards support online purchases.
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