Visa Gift Cards 101: The Basics You Should Know

How much do you know about Visa gift cards? They are one of the most popular and accepted gift cards globally. Visa gift cards are issued by global payment technology leader Visa and are accepted in over 200 countries and territories. 

They do not have brand or store restrictions and allow users to shop on Amazon and eBay and pay for goods and services anywhere Visa cards are accepted. 

There is much more to learn about Visa gift cards, like their benefits, how they differ from debit cards, how to buy and sell them, how to use a Visa gift card, how to activate them, how to check the balance, and more. 

In this article, I will explain all the basics you should know about Visa gift cards. If you’re ready, let’s begin.

What Are Visa Gift Cards?Visa gift cards are prepaid cards that let you pay merchants globally who accept Visa cards. They are loaded with a fixed amount upfront and you can reload it once the balance is used up.

The denomination depends on the issuer and where you buy the card. It can be as low as $5 and top out at $500. The table below further explains this.

It is important to note: Visa gift cards cannot be used to withdraw cash at ATMs and they don’t offer cash advances or let you send money to another account or wallet. They’re built strictly for purchases online and in-store.

There are three main types of Visa gift cards:

1. Standard Visa gift card:

Standard Visa cards are the most common type of Visa gift card. They are loaded with a fixed amount of money and are issued as a physical card. The plastic card carries a printed expiry date. However, the date applies to the card and not the money on it. Check the FAQ section below for more information on this. 

2. Custom Visa gift card:

Custom gift cards allow for personalisation with an image or message of choice. However, they have the same features as the standard Visa gift card.

3. Visa e-gift cards:

Visa e-gift cards are digital versions of standard gift cards, typically sent over email addresses. They are perfect for gifting over a distance and can only be used to purchase online.

3 Differences Between Visa Gift Cards And Visa Debit Cards

Visa gift cards are different from Visa debit cards in that they are issued by different providers, offer partial anonymity, and allow limited funds.

1. Different Issuers:

Visa debit cards are different from Visa gift cards. Banks issue their customers Visa debit cards to enable them to withdraw cash and make online payments, while preloaded Visa gift cards can be purchased from retailers online and offline. 

2. Partial Anonymity:

Visa gift cards offer some level of anonymity; users are often asked to register their gift cards upon purchase so that the issuer can protect them in the case of theft or loss. 

However, unlike a Visa credit or debit card, issuers cannot have a complete record of the users’ data as they are not linked to the user’s bank.

3. Limited funds:

Unlike debit cards, Visa gift cards often have a preset amount of funds loaded inside and are not reloadable. Once the funds are used up, the cards must be replaced.

4 Benefits Of Visa Gift Cards

Visa gift cards offer flexibility and convenience. They are also usable for ATM transactions, provide protection in the event of loss, and are budget-friendly.

1. Flexibility And Convenience:

Visa gift cards outperform other gift cards due to their global acceptability at millions of merchants worldwide. They are not limited and can be used across brands or stores.

2. Usable For ATM Transactions:

Users can use their Visa gift card to withdraw cash from ATM locations, just like regular debit cards. Of course, after activating the card and setting up their PIN, they must confirm that it is enabled for ATM transactions. 

3. Protection In The Event Of Loss:

Visa gift card protects the user’s remaining balances in the event of loss or theft. Users can contact the card issuer for cancellation and replacement.

4. Budget-Friendly:

With denominations between $25 and $500, users can easily choose a gift card that matches their budget and load the amount they want on the card.

The Real Downsides of a Visa Gift Card 

If you’ve searched “what are the cons of a Visa gift card,” you’re not alone. It’s one of the most common questions people ask especially after facing a declined transaction. Here are some of the most common reasons: 

1. 1. Merchant declines: Some merchants will outrightly block prepaid cards, regardless of how much balance is left on the card. 
   2. Blocked subscriptions: Recurring payments like Netflix or Spotify may accept the card for the first charge, but will decline it on subsequent renewals once the issuer flags it as prepaid or the balance runs low.

• Blocked transfers: Some transfer apps will let you fund a purchase with the card but won’t let you send money to another person or top up your bank balance with it.

1. Pre-authorization holds: Physical sites like hotels, car rentals, and fuel stations usually hold a temporary amount of money before you even execute the transaction. This amount can exceed your balance and cause a declined transaction even when you have enough for the actual service.

What To Do When Your Balance Doesn’t Cover The Full Bill

Most checkouts, both online and in-store, cannot split a single charge between two payment methods. So, if you are trying to pay for a $62 bill with a card that has $50 left, the transaction will get declined instead of charging $50 and asking for the remaining $12 elsewhere. There are two ways to get around this issue:

• Online: Buy a merchant e-gift card for the exact remaining balance, add it to your account, then check out using that credit plus the balance in your gift card.

• Physical store: Ask the cashier to input your remaining balance as the first transaction, then pay the rest with cash or another card.

Where To Buy And Sell Visa Gift Cards

There is no shortage of options for buying or selling your Visa gift cards, wherever you’re based. 

In Nigeria: Options are more limited but one platform stands out. Cardtonic stocks Visa gift cards and offers a secure way to buy or sell them at competitive rates, whether you’re gifting one, funding online purchases, or converting a Visa gift card balance into cash.

In the US: Visa gift cards are widely available at grocery stores, pharmacies, big-box retailers like Walmart and Target, banks, and directly from online gift card providers.

How To Activate And Register A Visa Gift Card

After purchase, you must activate your Visa gift card. To do so, visit the card issuer’s activation link and enter your card details. Alternatively, you can call the phone number on the front or back of the card.

Activation attracts a one-time fee, depending on its value.

So, for a $100 Visa gift card, expect an activation fee of around $3.95.

Beyond the activation, a few other fees to watch out for are:

• Inactivity/dormancy fee: only charged after 12 straight months of no activity, and issuers can only apply one per month.
• Replacement fee: charged if you request a new card after it gets missing, stolen, or expires with a balance remaining.
• Foreign transaction fee: typically around 2–3% if you use the card outside the US.

Registering your card is an extra step to secure it from possible loss or theft. It involves submitting your contact details and gift card details to the issuer. You should receive a confirmation message or email once registration is complete.

How To Redeem And Shop With A Visa Gift Card

Once the card is activated, users can redeem Visa gift cards anywhere Visa cards are accepted, i.e., in a physical shop, online shop, or e-commerce store like eBay.

After adding items to the cart, take the following steps:

1. Tap Add New Card payment method.
2. Enter your Visa gift card number, expiration date, security code, and name.
3. Check out, confirm and pay.

How To Check Your Visa Gift Card Balance

Checking your Visa gift card balance is easy and can be done by completing the following steps:

1. Visit the card issuer’s website.
2. Locate the Check Balance tab.
3. Enter the 16-digit number and security code.
4. Tap Check Balance.

Alternatively, you can call a toll-free number on the back of the card to request your balance.

How To Secure Your Visa Gift Card

Visa gift cards should be treated like regular credit cards, and adequate measures should be taken to ensure security.

A few essential checkboxes include users refraining from sharing card details with third parties, registering their Visa gift card and staying wary of phishing scams.

Frequently Asked Questions About Visa Gift Cards

1. How Can I Reload My Visa Gift Card?

Unfortunately, Visa gift cards are not reloadable, and the user cannot add additional funds when the original balance is used up.

2. What Happens When My Visa Gift Card Expires?

When a Visa gift card expires, your funds are still protected. So if the card expires while you still have a balance, contact your issuer and they’ll typically transfer the remaining funds to a replacement card, usually for a small replacement fee. Don’t throw away a card just because the printed date has passed.

3. Where Can I Buy A Visa Gift Card?

Visa gift cards can be purchased at reputable stores, platforms, and vendors, but if you need a trusted platform to buy Visa gift cards securely at competitive costs, Cardtonic is your best bet.

4. Are There Any Fees Associated With Using A Visa Gift Card?

Visa gift card users are charged activation and replacement fees. Inactivity and purchase fees are other fees to consider. It is essential to find out every associated fee from your card issuer.

5. What Should I Do If My Gift Card Is Lost Or Stolen?

If you lose your gift card, it is important to report the incident to the card issuer immediately so they can block access to the card and protect existing funds.

Conclusion

Visa gift cards are one of the best options because of their flexibility, convenience, and budget-friendliness. In this Visa Gift Card 101 piece, I delved into the basics of Visa gift cards and mapped out how to use them, including activation, registration, and checking balances.

I am sure you are ready to flex your muscles and show your peeps how much you have learned about Visa gift cards. Well, Visa gift cards are one of the many gift card options we have here at Cardtonic, and you may want to explore them all.