Considerably high-value digital asset; only a start, shifted track; as ordinary official store related, the provisions in, a valid card is one of the viable kind of gift anyone can own or give due to the cards’ value. This is a buzzword among young generations using gift cards for varying purposes as it remains a considerably high-value digital asset.
The term “gift card” refers to a prepaid stored-value money card often given by a retailer, bank, or business to be helpful as an alternative to cash for transactions within particular stores or online marketplaces. Therefore, this article highlights what gift card is about as it relates to their existence as a gift.
Definition Of Gift Cards
A gift card works its currency and denomination and looks a lot like a debit card from your bank, only it has money loaded onto it already. Prepaid funds, the gift card’s recipient, can then be used to make various allowed purchases from online and physical stores.
Categories Of Gift Cards
1. Open-Loop Card
The gift card industry frequently uses the term “open-loop.” Financial institutions and credit card companies like VISA, MasterCard, Verve, and American Express provide “open-loop” cards, unlike “closed-loop” gift cards offered by retailers like Google Play, Walmart, etc.
An open-loop gift card, in contrast, doesn’t name a specific store. Cards bearing the logos of Visa, Discover, Mastercard, or American Express indicate that well-known financial institutions issued them.
Since most companies accept them, you can use these cards almost anywhere. They typically come in predetermined amounts like $25, $50, or $100. Customers, especially those without bank accounts, usually utilise open-loop cards to budget for various monthly needs.
They are essentially bank-issued credit and debit cards that you can use at various point-of-sale terminals. A closed-loop card can’t hold as much data as an open-loop card can. It implies that unlike gift cards (closed loop cards), which may contain up to a million dollars, a VISA dollar card can only hold one million dollars.
2. Closed-Loop Card
You can only use electronic payment mechanisms known as closed-loop cards can only be used at a single retail establishment. A “closed-loop card,” a “single-purpose card,” can only be used there. Customers frequently consider a closed-loop card a gift card for a specific retailer.
Gift certificates known as “closed-loop cards” can be redeemed on online retailers, including Steam, Apple, Amazon, and our neighbourhood shop. When utilising mobile gift cards distributed to mobile phones via email or SMS, clients only need to carry their phones thanks to phone apps.
Forms Of Gift Cards
1. Physical Gift Card
You can buy and sell physical gift cards at your discretion. They are plastic, much like other playing cards of this kind. It is a rectangular credit or debit card. It bears imprinted card numbers or special codes, just like other cards with related functions.
If you want to sell gift cards in Nigeria, Prestmit is the best trading platform, offering the best gift card rates. Unlike gift certificates, they are not customised with anyone’s name. Consequently, they have card identifiers that help with card validation. It makes fraudulent transactions easier to see and avoid. Physical gift cards like those from Amazon are just one type of them.
2. Digital Gift Card
The recipient receives virtual gift cards via email. The recipient gets virtual gift cards via email. Virtual gift cards have the advantages of not being easily misplaced and saving the buyer the extra time needed to buy an actual gift card at a store, which makes sense. These gift cards can also be purchased more rapidly, which is convenient if a gift-giving event is approaching at the last minute.
Other companies have made digital gift cards available for clients to use on mobile devices. Because the merchant is not involved in the transaction, it is a money transfer instead of a physical gift card. Birthdays, holidays, marriages, and employee incentives are a few occasions when gift cards are given.
Gift cards from stores like Apple, Amazon, iTunes, Macy’s, and Walmart have become increasingly popular as people have become more dependent on buying goods from other nations.
Common Gift Card Terms And Conditions
Every product has terms and conditions for using it, and gift cards are not excluded in this regard. Some of them include the following:
1. You can only redeem gift cards once, which will be done at the brand’s official store that issues the gift card.
2. You can not transfer your gift card balance to another card.
3. Some gift cards may expire after the set time of use.
4. You must activate your gift card before redeeming the card. This applies to physical gift cards, which you must start at the point of purchase from your retailers.
5. You must keep your gift card safe, as your card issuer will not be responsible for any theft or damage to your gift card.
History Of Gift Cards
Let’s examine how gift cards came to light concerning when people started using them and how they evolved.
Origins Of Gift Cards
Gift cards were initially introduced in the early 1970s and 1980s by retailers like McDonald’s and JC Penny, who used thin plastic cards to track purchases and redemption of their products more efficiently. However, attention shifted to gift cards in 1994, with their introduction into the market by retailing brands like Blockbuster and K-mart. They used gift cards as an alternative to paper gift certificates.
Evolution Of Gift Card Over Time
Gift cards have the potential to track and reconcile purchases; as such, the popularity of gift cards has gained so much traction following the promotion of the cards on the media and TV. It is noteworthy that gift cards have maintained their stance as a valuable asset to retailers and consumers through their various uses.
Over time, gift card technology is continuously growing and is an essential tool and cash flow generator that many businesses use across various industries.
Current State Of The Gift Card Industry
Gift cards are growing in popularity and usage, enabling recipients to shop for different products at their preferred stores. The global gift card market recorded a market value of $437.78 billion as of 2020, and this is expected to grow by 15.4% to reach a market size of $1396.01 billion by 2028. The increase in the use of smartphones has been pivotal to providing customers with payment options that are flexible and convenient, hence boosting the gift card market.
How Gift Cards Work
We need to understand how gift cards work when you have one, as they may look like an ordinary plastic cards or email messages if you don’t work on them.
Activation Of Gift Cards
Gift card activation proceeds with the redemption of gift cards, thereby enabling you to use your gift card. So activating your gift card after getting it is the first step. You can activate your gift card immediately at the point of purchase from your retailer if you hold a physical gift card. But you may not need to start a digital card because they are readily activated before you receive them via email!
Redeeming Gift Cards
Redeeming your gift card precedes gift card activation. Every gift card has a code you will enter to redeem your gift card. You can only redeem your gift card at the brand’s official store that issues the card. For instance, you can only redeem your iTunes gift card on the Apple store and your Google Play gift card on the Play store.
Checking Gift Card Balances
Your gift card amount is expected to be added to your gift card balance after redeeming the card. So you can check your gift card balance on your gift card’s store account to confirm the addition to the balance. You may have to contact your gift card retailer if the amount is not added to your balance after redeeming your gift card.
Uses Of Gift Cards?
You can use closed-loop gift cards to make purchases at gas stations, retail stores, restaurants, and other locations if the gift card supplier is present or has given the authorisation to take the cards.
The most common gift card varieties are those for petrol stations, grocery stores, shopping malls, and other establishments. While businesses primarily give out gift cards to enhance direct sales, they are frequently utilised for advertising enterprises or as consumer appreciation gifts.
Gift cards are an excellent way to thank your loyal customers or launch a new brand in a seasoned market. Aside from that, the availability of wholesale gift cards makes it easy to develop a card rewards program that is affordable and has long-term value.
1. Personal Uses Of Gift Cards
You can use gift cards to meet your personal needs related to your interests. As an individual, you can use gift cards to access content like books, movies, music, video games, and whatnot, depending on the content available on the brand store that issues your gift card.
Because we know that gift cards have value on them concerning their currency and denomination, you can sell your gift card to make money. Also, you can decide to sell your gift card for cash. In this instance, Prestmit is the place to sell your gift cards in Nigeria and Ghana, as we offer the best gift card rates that you can only find on our platform.
2. Corporate Uses Of Gift Cards
You can use gift cards in companies as an incentive for the diligence and effectiveness of your employees. You can also give gift cards as gifts for birthdays, special holidays and seasons like Christmas. Gift cards provide room for customisation, designing the gift card to carry your company’s logo as you wish.
3. Marketing Uses Of Gift Cards
Every business aims to design a marketing strategy to create a retaining customer funnel. You can use gift cards to attract more customers to your company and, in turn, maximise profits from your sale. Gift cards can have a discounted price of products and services on them, such that it will attract people to interact with your business, get potential customers and retain them as your regular customer.
Advantages And Disadvantages Of Gift Cards
Gift cards are of great value, so their benefits can not be underestimated, but there are also some drawbacks of gift cards we need to look into.
Benefits Of Gift Cards
1. Promote Brand Recognition
Most gift cards are designed to represent the company’s logo and brand. The buyer may use this as a helpful promotion tactic. As more people purchase gift cards to give to their loved ones on special occasions, your brand grows among new customers.
2. Reduce Fraud
When gift cards rather than cash are distributed, more sales are stimulated. A portion of the redemption value is possible using a digital gift card, eliminating cash back and leaving a gift card balance. You can also use gift cards to acquire shop credit, lowering the Fraud perpetrated when customers try to cash in on expiring refunds.
3. Increase Customers
Gift cards are often helpful for stores accepting credit cards for the products or services most consumers want. Customers typically shop at your rivals’ establishments and are persuaded to check out your offerings with cards. It may result in future returns for other purchases.
4. Boost Sales
Most gift cards have value preloaded, yet many customers still choose to spend more. The gift card promotes customer entry and product browsing. Once people start searching, more items can appear alluring and might cost more than the gift card’s value. Your consumer will be satisfied even if you can only cover a percentage of the expense, and you won’t lose any business.
5. Source Of Income
Gift cards differ from other gifts because of their value; you can make money from gift cards you sell individually or on a gift card trading platform like Prestmit. You will get real-time rates for your gift card, enabling you to convert gift cards to cash.
Drawbacks Of Gift Cards
1. You can lose your gift cards to theft and damage if you don’t keep your gift cards well.
2. The value of gift cards works with the real exchange rate in the international market. So the value of your gift card may depreciate if there is a fall in the price of major currencies like US dollars or pounds.
3. You may be scammed of your money if you buy gift cards from a fraudulent platform.
4. Your gift currency and denominations can only be redeemed once on your gift card.
Comparison With Other Gift-Giving Options
Gift cards hold a valid value relative to their currency and denomination. This feature makes gift cards more suitable than gifts with little or no value. You can imagine the couple gift recipient will have when you give a $100 Steam gift card compared to a birthday greeting card. Therefore, the value that gift cards hold, coupled with their longevity, posits them as the best gift t to give your loved one.
Conclusion
Gift cards are of great value as you can use them for varying intended purposes, whether personal, corporate, or as a marketing strategy. The benefits of gift cards are enormous that they can not be undermined.
However, they need to get gift cards that would adequately meet their needs in accessing your content of interest. But you can sell your gift cards if you do not necessarily need them card.
Akindsou, thinking of where to buy or sell your gift cards? Look no further, as Prestmit remains the best gift card trading platform.
