Gift Card

A gift card is a prepaid stored-value card that can be used as an alternative to cash for purchases within a specific business or a group of affiliated businesses. It is typically issued by a retailer or financial institution and can be loaded with a specific amount of money, which the recipient can spend at their discretion.Gift cards are like digital wallets in the form of cards, allowing individuals to carry a specific amount of money with them in a convenient and secure manner.

Benefits

Gift cards allow both the giver and the recipient to have better control over their spending.Gift cards can be used for online shopping, allowing recipients to conveniently make purchases from the comfort of their own homes. They provide a secure and easy payment method for e-commerce transactions.Gift cards can serve as a backup or emergency fund. In unforeseen circumstances, having a gift card on hand can provide financial assistance for essential purchases or immediate needs.

How Its Work?

The process begins with the purchase of a gift card, Gift cards are typically activated at the point of sale, either by the cashier or through an automated system, The recipient can use the gift card to make purchases at the specified store or brand. Gift cards can be categorized into two main types: 1.Closed-loop gift cards:These gift cards are specific to a particular retailer or business. They can only be redeemed at that specific establishment or within a group of affiliated stores under the same brand. 2.Open-loop gift cards:Also known as network-branded gift cards, these cards are typically affiliated with major payment networks such as Visa, Mastercard, or American Express. They have broader acceptance and can be used at any merchant that accepts the respective payment network.