Gift Cards

Gift cards are modern day interpretations of gift certificates. The most common gift cards are purchased from a retailer and loaded with a pre-set amount of money or store credit. The cards are given as gifts, allowing the recipient to use the money or store credit to purchase whatever they choose.

Fast Facts

1. Offered by most retailers
2. Given as gifts
3. Many can be pre-loaded with any denomination
4. Many are re-loadable for multiple uses
5. Retailers track card balance electronically

How It Works

Typically gift cards have no value until they are purchased. When the card is purchased, the cashier will add a specified amount of money to the card and activate it for use. The cards are then given to the recipient, who can return to the retailer and use the money on the card much like cash to purchase whatever they choose. Because gift cards are quick and easy to purchase, they are often purchased as last minute gifts.

Gift Card Types

Retailer specific cards can only be redeemed at the retailer they were purchased from. Many shopping malls also offer universal gift cards, that may be redeemed at any store within the specific mall or chain of malls, allowing more variety for the recipient. Several major credit card companies offer cash based gift cards, which are pre-loaded debit cards that may be used anywhere the credit card type is accepted. More recently, a few companies, such as Visa, offer medical gift cards that can be used for medical co-pays, prescriptions and deductibles.

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