Gift cards: Types and Uses
Gift cards are money cards that holders use to pay for goods and services. They are similar to regular debit cards but differ in their mode of issuance and use. They are usually issued by retail stores, financial institutions, and eCommerce websites. The idea behind gift cards is to aid easy gift-giving, money gifting, and payment process.
Instead of thinking of gifts for different occasions, gift cards happen to be a great alternative. Be it a birthday celebration, wedding anniversary, Mother’s Day, child dedication, or housewarming gift cards are a one-fit-for-all. Gift givers only have to decide upon how much they are willing to spend on the gift, walk into a store that the recipient would like to buy stuff from, and buy the equivalent amount they want to spend on the gift card.
Most gift card issuers often offer customization services to customers. This additional service makes the card a perfect fit for the occasion as it assists the recipient to understand the reason behind the gifting. It makes the gift seem thoughtful and inspiring without having to choose any gift in particular. If you have a boy who likes to play games, you should consider getting him an Xbox gift card. That is where he can get at all the fun games, consoles, and games accessories he needs to always be on top of his game.
Kinds of gift cards
Generally, there are two variants of gift cards across all gift card issuers; physical plastic gift cards and digital gift cards. Physical plastic cards are those that users can touch, hold and use. Physical gift cardholders can buy and use them in physical stores as well as online platforms. They are similar to regular debit cards, but recipients can only use them to purchase things at the issuer’s authorized stores and sites. Physical plastic gift cards are the best for physical gift-giving, shopping, and fund storage.
In contrast to physical gift cards, digital gift cards can not be physically bought, received, or used. Digital gift cards are usually purchased online and sent to the recipient’s email address. They are also called eGift cards, Ecodes, or electronic gift cards.
Types of gift cards
Gift cards are differentiated based on the stores and companies issuing them. There are hundreds of gift card issuers around the globe. NIKE, Amazon, Steam, Walmart, One Vanilla, Visa, Sephora, iTunes, Google Play, Nordstrom, and Xbox gift cards are a few popular ones. For this article, we would be saying a few things about some of these gift cards.
- Amazon gift cards: Amazon is an eCommerce platform that deals in all kinds of household, corporate, and industrial items. Gift cardholders can use their cards to buy clothes, shoes, books, and every other thing sold on the platform and have it delivered to their preferred address. So, if you have a friend who likes online shopping, an Amazon or eBay gift card would be perfect for them.
- Xbox gift cards: This is one gift card that every gamer would like to buy. Xbox is one of the largest video gaming brands in the world. They produce several mind-blowing games and game accessories. Xbox is owned, operated, and managed by Microsoft. Thus, Xbox gift cards can be used to purchase stuff from Microsoft stores, from software to hardware. Another perfect gamers gift card that you might want to check out is the Steam gift card.
- Sephora gift cards: Sephora happens to be one of the biggest retail companies in personal care and beauty products. They have physical stores across America and the middle-east. A Sephora gift card makes the perfect match for females who like to shop for beauty products.
- Nordstrom gift cards; are another big catch in this area. They provide the most amazing offers for Jewries, shoes, clothes, and other fashion accessories. Nordstrom is one of America’s biggest fashion stores.
Uses of gift cards
- Gift giving: Gift cards are an awesome gift alternative, especially with digital gift cards. With digital gift cards, people can send money gifts to their friends and loved ones in other countries. Gift givers simply have to get the card online and send it to the recipient’s email address. Easy-peasy!
Recipients who do not have use for their gift cards or do not want to use them yet can exchange them for money through trusted gift card exchanges.
- Store of funds:You might feel insecure about storing your funds at regular banks due to server downtime, bank charges, transfer errors, bank records, card expiry, and so on. Gift cards offer a safe path to keeping your money without all of these complexities. Most gift cards do not expire, and they are not connected to regular checking accounts. They can store your funds for as long as you want.
- Periodic expense budgeting: Sometimes, people want to plan out their expenses so that they do not have to spend out of their budget on a weekly or monthly basis. Gift cards can be of great help in this case. You can buy a $200-dollars gift card to meet your weekly household shopping need, so you do not have to look up extra money in your regular account to buy stuff. Once the card fund is exhausted, you accept that that’s all for the week. This idea helps people to build a healthy maintenance culture on how they should spend their money.