What Is The Difference Between Cash and Gift Cards

The saying gift cards are just like money would most likely not be new to you. There are tons of similarities between the two, and sometimes it becomes a little challenging to decide the one which is best for you, especially regarding a particular operation or activity.

What is Cash?

Cash needs little to no introduction. This has always been around you growing up. Cash is the physical version of money, which can either be banknotes or coins in any currency.

This is still the most popular and acceptable form of money worldwide for various reasons. 

Benefits of Cash

Cash offers people certain advantages that other payment methods cannot provide. Cash brings a sense of freedom, security, and privacy.

1. Cash Brings Liberty: Because this is the most accepted means of exchange in the world, you can get practically anything and everything with cash.

2. It Gives Security: People love cash because it gives them a certain level of assurance and peace of mind that they will be able to take care of anything unplanned occurrence during their day. 

3. Cash is Private: Certain value their privacy. Cash as a means of payment removes any intrusion from a third-party payment provider or tracking systems that come with online payments.

Disadvantages of Cash

While cash offers advantages like privacy and security, it also comes with some downsides in today’s increasingly digital world. Cash limits certain types of payments faces wear and tear issues, and can be easily misplaced.

1. Limited Payments: Because the world is developing into a more cashless environment, Certain brands don’t allow payments that are not digital. Also, it is hard to make significant purchases with this money, for example, houses, cars, travel, etc. 

2. Risk of Wear and Tear: Cash is paper. If not correctly taken care of, they can be torn or worn out, which reduces the chances of them being collected. 

3. Can Be Misplaced: It is normal human behaviour to lose things. Cash is not excluded. Tons of people misplace their wallets, purses, and cash daily. Once it’s misplaced, there is no insurance you can use to cover your loss. This is why it is advisable never to have too much cash at once. 

What are Gift Cards?

Gift cards are digital assets that serve as alternative payment methods at specific stores or brands. Your gift card serves precisely like cash and maybe even better at the brand. 

Benefits of Gift Cards

Using gift cards brings various advantages, including simplifying payments, keeping track of expenses, and being hard to misplace.

1. Gift Cards Simplify payments: With gift cards, you can enjoy a seamless shopping experience at the brand. Once your gift card details are stored on their website or your phone, you can quickly checkout without any hassles. 

2. Keep Track of Expenses: Gift cards are the perfect tools that can be used to track your expenses. Whether it is daily, weekly or monthly. The purchase history on gift cards allows you to understand 

3. Hard To Misplace: Physical Gift cards are quite distinct. Even if you need to misplace your gift card, as long as you have the details on your phone, you can keep redeeming it. The e-code format would always remain in your email and text messages, so you have no issues. 

Disadvantages of Gift Cards

Gift cards are not without their drawbacks; they can pose challenges and inconveniences for both the giver and the recipient. Some of the disadvantages of using gift cards include limitations, not being fully dependent, and being geographically bound

1. They Can Be Limiting: Gift cards can only be redeemed at the brand for which there were designed. So you can spend $500 from your $500 gift card but only at a particular brand.

2. Not Fully Dependent: This method of payment still needs either a debit, credit card, or cash to purchase them, and also to read them.

3. Geographically Bound: You can only redeem your gift card in the country of purchase. For example; a $200 Amazon gift card cannot be used in Mexico or Poland. Only in the United States.

Differences Between Cash And Gift Cards

Cash and gift cards have some significant differences that affect their value, convenience, and usage, including appearance, functionality, expiry date, and accountability.

1. Appearance: The first and most obvious distinction between these two assets is how they look. Cash comes in paper or nylon form and is rectangular. However, gift cards are hard paper or plastic and designed with the company’s brand

2. Functionality: Gift cards can only be redeemed at their brand’s physical branches and website. While Cash can be used as a means of payment almost anywhere.

3. Expiry Date: Although most gift cards do not have expiry dates, some do. Gift cards usually expire within 5 -10 years. Unless a law is passed for new bills and discontinuation of old bills, cash does not Expire.

4. Accountability:  It is very easy to keep track of your expenses when you use gift cards to purchase items. This is because every expenditure with your gift card is inputted in your purchase history thanks to technology. On the other hand, it is much harder to recollect the details of every Niara or dollar you have spent with your human mind. 

How To Turn Cash Into Gift Cards 

If you are interested in gift cards and are looking for a place to get one, here are the best options: purchasing at a physical outlet, on the brand’s official website, or at retail stores.

1. At a Physical Outlet: Walking into any of the physical branches of the brand to purchase your gift card is one the easiest and safest means of buying this digital asset.

2. On the Website: The brand’s official website is another perfect place to purchase gift cards. You would get all the information you need to proceed.

3. Retail Stores: Places like CVS pharmacy, Walmart, Amazon, etc. el various big brand gift cards. 

How To Turn Gift Cards into Cash

If you have an unwanted gift card or gift card and do not know what to do with it, or suddenly need cash, all you need to do is use a trusted gift card trading platform like Cardtonic to convert your gift card to cash. 

Cardtonic offers the best gift card rates and an easy user experience on the application. On Cardtonic, you would have access to your cash in no time.