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Global Gift Card Market

Everything You Need To Know About Gift Cards Aug 21, 2023

E Gift Cards

E Gift Cards An e-Gift card is a digital gift card that you send to the recipient via email. The email will contain a unique code associated with the card, which the recipient uses to purchase the items of their choice. The sender of the e-gift card typically receives an email for confirmation that the website has sent the card. Like any gift card, the sender can choose the amount of money put on the card, which the recipient can then use.
Who says there’s No Such Thing as Free Shopping?

When gift card is there.

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What Is a Gift Card?

A gift card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases. Store gift cards are designed to be used at specific merchants or retailers, while general-use prepaid gift cards are not affiliated with any specific merchant and can also be used to withdraw cash at automated teller machines (ATMs).

“A Gift Card is a thoughtful and practical gift that your loved one will surely appreciate”

Do gift cards expire or have fees?

Depending on the card, a gift card may expire if the money loaded onto it is not used within a specific time-period. You may also pay fees to activate a new gift card or reload money onto an existing gift card. Some prepaid gift cards may also charge monthly or dormant-account fees.

Key Takeaways

  • A gift card is a prepaid debit card that is loaded with a specific amount, which can then be used to make purchases and other financial transactions
  • Store gift cards (closed loop) are designed to be used for purchases at specific retailers, while general-use prepaid gift cards (open loop) may be used at a wider variety of locations
  • Some gift cards may allow for cash withdrawals at an automated teller machine (ATM)
  • Closed-loop gift cards are usually not reloadable

Benefits of gift cards

  • Freedom to choose:
    Just like all forms of gift vouchers, digital cards give you the freedom to choose whatever you want to purchase within the stipulated amount on the card.
  • More convenient:
    Since they are not physical cards you have to carry about, they are more convenient as the details are on your device and you have access to them anytime.
  • They cannot be lost:
    Unlike the physical cards which you can misplace, the digital codes are ordered online and sent to your email address or phone number (whichever is provided), and the details can easily be accessed through your device and contact information provided.

Gift Card Scams

The scams primarily revolved around scammers asking consumers to purchase gift cards as a form of payment. The consumer provides the gift card number to the scammer based on the assumption that they’re making a legitimate payment. The scammer then makes off with the money. Another scam involves the compromise of physical cards in the store. Scammers tamper with cards to obtain the gift card number. When a consumer purchases the card and loads money into it, the scammers are then able to steal those funds by using the card to make purchases.

Types of Gift Cards

There are basically two types of Gift Cards on the basis of acceptance:

Open Loop (or network): This is widely accepted as it is associated with a particular network – be it Visa, MasterCard, American Express or similar.

Closed Loop: This is accepted only at select locations or can be used only for a few select brands.

There are also two types of cards based on their ability to reload:

Reloadable: Gift Cards that can be reloaded with money time and again till its date of expiration.

Non-reloadable: These kind of Gift Cards can be loaded only once.

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DBMR has served more than 40% of Fortune 500 firms internationally and has a network of more than 3000 clients. To know more about the study, visit //baronmoving.com/reports/global-gift-card-market

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