Everyone, from children to adults, is fond of gifts. Instead of buying gifts, many choose to give gift cards nowadays. It is the modern method to gift your loved ones. Gift cards give more benefits than stepping into the gift shop for shopping.
If you don’t know someone’s gift choice, gift cards are the perfect option. Also, it saves you time and effort when shopping. Further, you will have the freedom to determine the cost of purchasing. Gift cards are purchase cards with preloaded money paid against the card.
In this blog, we will explore the usage of gift cards and their pros and cons.
Shopping using gift cards
Many physical and online stores offer gift coupons or cards. Upon receiving it, the cardholder can use it according to their shopping needs.
Types of gift cards
Before learning about the usage of gift cards, let’s look at the types of gift cards.
1. Physical gift card
Physical gift cards are plastic cards available in banks and online gift shop. You can choose the card from the available options and make the payment. Once done, you can give it to someone.
Usually, gift cards by bank can be used anywhere.
2. Digital gift cards
Digital cards are similar to physical cards but work only on online platforms. Online gift cards give you the convenience to do online shopping.
Many online shopping sites offer gift cards at a particular cost. Upon successful payment for your e-gift card, you will receive it instantly.
Tech-savvy persons design and write personalised notes on the cards. Thus, the flexibility makes digital gift cards a modern gifting option.
Reloadable and non-reloadable cards
Gift cards can also be divided based on loading money.
- Reloadable card: This card is easily reloaded with money. It can also be used until expiration.
- Non-reloadable card: This card cannot be reloaded with money. However, it becomes reloadable after a certain registration process with the card provider.
Redeeming the gift card
Redeeming the gift cards is as easy as spending cash for purchase. Here are the steps involved in redeeming the gift cards.
- Check out the physical or online store where you make purchases.
- Select the items for your purchase.
- Give your card details to the shop owner. If you have an online card, submit the card number.
- The purchased amount will be debited from the card.
- Any remaining amount in the gift card can be used in the future.
If your purchase exceeds the gift card value, you can pay extra or reload your gift card with more money.
Pros of gift cards
- A safe and convenient option
By using a gift card, you can go cashless for shopping. You can also freeze your gift card if it is lost or stolen. Gift cards are convenient as they work in one click after purchase.
- Perfect gifting option
Last-minute shopping is difficult. But, by giving a gift card, you give the purchasing work to someone. Further, the receiver will be satisfied with their shopping experience.
- Alternative to credit and debit card
Credit cards and debit cards make you spend more. But gift cards avoid unnecessary spending. As gift cards are prepaid, you are more likely to spend only a limited amount.
Gift cards are easily available and have wide access in stores and online. Many move towards gift cards in the festive season. You can also track the usage of gift cards if used by children.
Cons of gift card
- Gift card expiry
Some gift cards may come with an expiration date, meaning they cannot be used after that. So, it is best to do shopping within a particular time.
- Wastage of money
After shopping, you may have a small amount left on the card. The remaining amount will get wasted if you forget to use the gift card in the future.
- Gift card limitations
Cards from gift shops limit your shopping capacity. For example, you can shop only from a store or online platform where the card is valid.
Gift cards are an alternative to carrying cash or credit cards. Both physical and e-gift cards are in the market. Tech-savvy people choose digital cards as they are safe and flexible to use.
Giving gift cards is easy and avoids the tension of buying gifts. Also, the gift cards can be used multiple times to go shopping. However, checking the balance and expiration of gift cards is important before purchasing. Thus, gift cards are a fulfilling gifting option for both sender and receiver.