What Are Gift Cards Used For? - Cardtonic

What Are Gift Cards Used For?

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Gift cards were invented a long time ago and have undergone a series of evolution. Changes from how they look, their branding, their forms, and even what they can be used for. 

Gift vouchers are pretty popular, and most people have received at least one gift card as a gift before. In fact, 93% of Americans have received or given a gift card to someone at some point. But would you be shocked if you heard that most people usually do not know what they can do with these cards? Well, it’s true.

When using gift cards, the first, and sometimes, the only thing that comes to mind is using them to purchase a product from a store. But that is not the sole use of a gift card. 

What else can a gift card be used for? Keep reading to find out other uses of a gift card.

What Is a Gift Card?

A gift card voucher is a prepaid debit card loaded with a particular amount of money, and it is used in place of cash or a bank debit card to make payment for goods and services. 

Gift cards come in two forms- a physical plastic card and an Ecode. An ecode is an electronic gift voucher bought online. When you purchase an Ecode online, it is sent to your email provided.

Gift cards can be bought for personal use, but they are usually gifted out. For more than ten years, gift cards have been in high demand during the holiday season. As we are approaching the Christmas holidays, it is the best time to look into gift cards and the multiple ways you can use them.

3 Benefits of Gift Cards

  • They Are Appropriate For Gifting:

We’ve all been in situations where we feel stuck and do not know what to gift someone for a special occasion or even randomly; that’s where gift cards come in. Did you know that gift vouchers accounted for 68% of birthday gifts? Gift cards are not for birthday gifts alone; whether it’s a holiday celebration, anniversary or just any special occasion, gift vouchers are perfect gifts to give out. Bonus tip- get a gift card from their favourite store.

  • It Makes Payments Much More Convenient:

When the COVID-19 pandemic hit, most retail outlets and even restaurants started a cashless policy. This means that only card payments were allowed. With gift cards, it makes paying for goods and services much easier because you do not need to carry your bank card around all the time.

  • Can Be Used To Curb Overspending:

With most vouchers, you cannot spend more than the amount on the card. So, a gift card helps you develop a spending budget to not overspend, which often happens while paying with cash or a bank card.

5 Uses of Gift Cards

  • To Purchase Goods and Services:

This is the prominent and most popular use of a gift card. As mentioned earlier, gift vouchers can be used in retail outlets, restaurants, gas stations, online stores and just about anywhere that accepts them to purchase items and services. They act just like traditional bank debit cards and even cash.

  • For Gift Giving:

Gift cards are perfect when it comes to gift giving. Vouchers give the recipient total control over what they want to purchase. The recipient can buy whatever they please from the store with a particular amount on the card. Has your friend or partner been bugging you about a particular thing from a specific store, but all you can remember is the store? Do not panic; gift them a gift card from the store and let them buy it by themselves. They do not have to know you forgot. Thank me later.

  • To Promote a Business:

Physical gift cards usually have the business logo boldly printed on them, so that basically acts as an advert space as other people would see the logo and learn about the existence of your business, thereby promoting it. Also, because gift cards are small, they can be easily carried around in wallets, purses, bags and more; with more people seeing the voucher, the more your business will be promoted amongst people.

  • For Storing Money:

Some gift cards have an expiration date, meaning the funds on the card must be used before then; if not, they will be lost. But some cards do not expire. These cards that do not have expiration dates are an excellent way to store money for future use.

  • To Redeem For Cash:

You read that right; you can make money with your gift card by redeeming unused gift cards for cash. In 2019 alone, over 3 billion U.S. Dollars went unused in gift cards, which is quite common even in other countries worldwide. In Nigeria, the most famous branded gift cards do not work, and they go to waste, but you can sell these cards for cash by using the best gift card trading app in Nigeria, Cardtonic. 

Conclusion

Gone are the days when it was mandatory to walk into a store to buy goods, as you can now do that from anywhere with the use of a gift card. Gift cards have made payments much easier now, and although they are primarily used for purchasing items, they have other uses and advantages which benefit businesses and users. 

The Christmas holiday is approaching, and if you have been thinking of what to gift your family, friends and even loved ones, consider gift cards, their benefits and the various ways they can be used.

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