Confused about what a gift card is! Fear not, because you are in the just the right place to clear your doubts and explore the world of wonderful gift cards. Gift cards are like a prepaid debit card containing a specific amount of money. These can be used for shopping only. Gift cards are available based on different brands and shops. For example you can get a gift card from Amazon with a valuation of INR 1000. When shopping from amazing you can use the gift card code and get yourself a 1000 rupees discount! Isn’t it wonderful!
Gift cards bring a whole new system of gifting. Nowadays with online shopping spree, it is easier to give someone a gift card, instead of an actual gift. Whenever a physical gift is involved you keep thinking, what if the person doesn’t like it? Or what if dislikes the color? But whenever you buy gift cards online instantly the thought disappears and you are relived! Now the person can like any gift of their choice with the specified amount.
Types of Gift Cards
Ideally there are 3 types of gift cards that are available the most – closed loop gift cards, open loop gift cards and digital gift cards.
- Closed Loop Gift Cards – closed loop gift cards are marketed by retailers and stores. An individual can buy goods from that specified store only. They are a single merchant card which can be used on the retailer’s website or in their physical stores. All terms and conditions pertaining to the gift card are written at the back. They also come with a validity date of the purchase amount. Many gift cards can also be used in the affiliated brands of the particular retailer. Closed loop gift cards cannot be recharged. Once you use the purchase amount, the card has no use. It is simply a piece of plastic or paper! You can buy best buy gift card online in this method.
- Open Loop Gift Cards – these gift cards are basically like a credit or debit cards which can be used directly. For example Visa, Mastercard or American Express offer gifts via this method. The payment processor’s logo is displayed on the card and is used to purchase anything of any brand online. If you own an open loop gift card, you can reload the card with money whenever the cash is reduced. Most companies charge an activation fee, which can be paid at the time of purchase. You will see these sort of cards at various food courts in shopping malls.
- Digital Gift Cards – digitally buy gift cards online instantly through this method. Once you become a regular and loyal customer of a particular brand, you get access to their loyalty programs and become a VIP member. These brands then offer promotional gift cards which can be online used in ecommerce websites. 25% of the ecommerce industry run on digital gift cards. Many international brands are increasing using eGift cards and offering it to its customers.