In our present age, gift cards have become a common and widely used form of gifting and payment. A gift card is a prepaid card issued by a retailer, bank, or other organization, which can be used as an alternative to cash for purchases within a specific store or group of stores. A prepaid card is a type of payment card that is preloaded with a certain amount of money and can be used for transactions until the balance is depleted.
Gift cards offer a convenient way to give someone the freedom to choose their own gift, whether for birthdays, holidays, or other special occasions. Gift cards can be found in almost every retail environment, from physical stores to online platforms, making them accessible and versatile.
WHY CHOOSE A GIFT CARD OVER CASH?
You might be wondering as to why you should choose a gift card over cash. If that is the case, you should know that choosing a gift card over cash can have several advantages depending on the context. Here are some reasons why someone might prefer giving or receiving a gift card instead of cash:
Personalization: Gift cards can be chosen from specific retailers or brands that align with the recipient's interests and preferences, making the gift feel more personalized and thoughtful. Consequently, recipients of a gift card might use the card to indulge in something they wouldn't normally buy for themselves, like a luxury item or a special experience.
Security: Gift cards are less likely to be lost compared to cash. Many gift cards can be registered, allowing for replacement if lost or stolen. Moreover, some gift cards come with fraud protection features that offer more security than carrying cash.
Convenience: Gift cards are easy to purchase and can often be bought online, sent via email, or delivered by mail, eliminating the need to handle physical cash. Gift cards are also, more compact and convenient to carry compared to cash, especially when giving a significant amount.
Budget Control: Gift cards can help the recipient manage their spending by limiting the amount they can spend to the card's balance, promoting more controlled and mindful shopping.
Flexibility: Recipients can use gift cards at their convenience, often without pressure to spend the money immediately, allowing them to wait for sales or make purchases when they really need something.
Specialty Purchases: Gift cards can ensure that the recipient uses the funds for specific purposes, such as dining out, entertainment, or shopping at a particular store, rather than for general expenses.
Summarily, while cash is universally accepted and highly flexible, gift cards can offer a more personalized, secure, and convenient gifting experience, often accompanied by special benefits.
TYPES OF GIFT CARDS
There are basically two categories of gift cards: Store-Specific gift cards and General-Purpose gift cards. They are considered as below:
Specific gift cards: These can only be used at one particular store or a group of stores owned by the same company. For example, an Amazon gift card can only be used to shop on Amazon.
General-Purpose gift cards: These are issued by banks or credit card companies (like Visa or Mastercard) and can be used almost anywhere that accepts those types of cards.
HOW DO GIFT CARDS WORK?
The working of gift cards will be considered in 3 phases. These are discussed as below:
Buying a Gift Card: You can buy gift cards at stores, online, or even at some banks. When you buy a gift card, you decide how much money to put on it.
Activating the Gift Card: Some gift cards need to be activated before use, which can usually be done at the store where you bought it or online
Using the Gift Card: When you want to buy something, you can use the gift card like you would use a debit or credit card. The amount you spend is taken off the balance on the card. You can use the card until all the money is gone.
PLATFORMS FOR BUYING AND SELLING GIFT CARDS
Popular platforms for buying and selling gift cards include the following:
Cardtonic: Cardtonic is a one-stop shop for all your gift card needs, bill payments, gadget purchases, and virtual dollar cards. With a catalogue featuring over 14,000 local and international gift cards, Cardtonic ensures a fast and reliable service with no transaction delays.
CardCash offers a platform for buying and selling discounted gift cards. With competitive rates for selling cards and quick payouts, CardCash provides a vast selection of gift cards and a reliable, fast service.
Cardpool allows you to buy and sell gift cards at discounted prices. Offering both physical and electronic gift cards, Cardpool provides a 100-day guarantee on purchases, ensuring a reliable and secure service.
Prepaid2Cash converts prepaid cards and gift cards into cash. With quick processing and options for direct deposit or check, Prepaid2Cash provides a reliable and efficient service for converting cards into cash.
ClipKard focuses on buying and selling physical gift cards. With an easy-to-use platform and competitive pricing, ClipKard offers a reliable service for those looking to deal in physical gift cards.
While the platforms mentioned cover a wide range of options for buying, selling, and trading gift cards, there are several other platforms that also serve this market. These platforms may specialize in specific types of gift cards, offer unique features, or cater to niche markets. Examples of other platforms include AfrCards, Tbay, ApexPay, CardFlip, GiftCardBin, Card Kangaroo, and GiftCardSpread, among others. Each platform typically offers its own set of benefits such as competitive pricing, extensive card selections, ease of use, and various payment options. Users seeking to buy, sell, or trade gift cards can explore these additional platforms to find the best deals and services that meet their specific needs and preferences.
CONSIDERATIONS WHEN BUYING AND SELLING GIFT CARDS
Read the Fine Print: Check for any terms and conditions, such as expiration dates, fees, and restrictions on usage.
Purchase from Reputable Sources: Buy gift cards directly from the retailer, restaurant, or financial institution to avoid scams and fraud.
Track Balances: Keep track of the remaining balance on the gift card to ensure you use the full amount.
Gift Card Scams: Be aware of common scams, such as fake websites or resale scams. Always buy from trusted sources.
Consumer Protections: Be aware of consumer protection laws in your area that may provide additional security, such as replacement policies for lost or stolen cards and restrictions on expiration dates and fees.
Conclusively, Gift cards offer flexibility and convenience for both the giver and the recipient. However, it is important to be aware of their terms, potential fees, and expiration dates. When used wisely, they can be a practical and appreciated gift option.