WHAT IS A GIFT CARD?

A gift card is a card that contains a specific amount of money available for use for a variety of purchases. Store gift cards are designed to be used at specific merchants or retailers, while general-use prepaid gift cards are not affiliated with any specific merchant and can also be used to withdraw cash at an automated teller machine. 

TYPES OF GIFT CARDS

1. Closed-Loop Gift Cards

Closed-loop gift cards are like stars in their galaxy, all focused and specific. They’re tied to one store or brand, like a loyal satellite orbiting a planet. So, if you have a closed-loop gift card, you can only use it at that store or business.

2.  Open-Loop Gift Cards

Open-loop gift cards are like these cool cosmic wanderers. They got the logos of big players like Visa, Mastercard, and American Express. That means they’re accepted practically everywhere that takes debit or credit cards. Think of them as a ticket to explore the entire galaxy of spending options!

3.  Physical Gift Cards

These are traditional plastic cards that can be purchased in-store or online and are typically mailed to your address. They are great for gifting in person and often come in customizable designs.

4.  Digital Gift Cards

Also known as e-gift cards, these are purchased online and delivered via email with instructions for use. They are a convenient option for instant gifting and can be used for online shopping or mobile payments.

DIFFERENT USES OF GIFT CARD

 

There are various uses of gift cards for both the card issuers and the gift card recipients, and they include:

1. GTo Promote Business

The primary goal of gift card issuers when issuing gift cards is to promote their business. Gift cards are a great way to increase sales, especially since people appreciate them as a gift-giving option. Gift cards like Amazon gift cards and DoorDash gift cards serve this purpose.

2. Gift Cards To Reward Employees

Most companies and businesses use gift cards as incentives for their employees. This is basically to motivate them and appreciate them for their work. Gift card incentives can be done monthly as stipends or especially to recognize certain talents.

3. Gift Cards To Buy Items And Services

The major use of gift cards by buyers is to use them as a payment method for their purchases. You can use a gift card in-store or online to purchase anything you want. This includes products and services offered by different businesses, including retailers, restaurants, fuel stations, and many more.

4. Gift Cards To Use As Gifts

This particular use has led to the popularity of gift cards worldwide. Many people prefer to give out gift cards during the holiday season or on special occasions like birthdays. It’s easy to purchase and redeem for the recipients.

5. Gift Cards To Save Money For Future Use

Certain gift cards do not come with expiration dates. You can purchase a good number of them and keep them for future purposes.

6.  Gift Cards To Reward Loyal Customers

Another gift card use is to reward customers who patronize often. This is a great way to increase patronage from existing customers and attract new ones.

What is The Benefit Of Using Gift Cards?

You might wonder, “Why should I bother with gift cards when I can use cash or credit cards?” Well, hold on to your hats because I’ve got a bunch of fabulous benefits to show you why gift cards are worth their weight in gold: Convenience, boost in sales revenue, and flexibility.

1. Good Cash/Card Alternative. 

They are great payment substitutes. On days when you don’t want to use credit cards for whatever reason, they save the day.

2. The Ideal Gift for Anyone

Worried about gifting the right item? Gift cards to the rescue. Especially when you purchase a gift card that has access to a variety of items, you’ve successfully left the worrying to the recipient. A great example is the Amazon gift card.

3. Accessibility

Gift cards are so convenient to buy and use. You can easily buy gift cards online and get them delivered to your email or SMS.

4. Safe to Use

Gift cards are also safe to use. In case of theft or loss, you can request a replacement card as long as you have your receipt.

How to Purchase a Gift Card

 

How To Purchase Gift Cards From The Brand 

Gift cards come from brands, restaurants, or businesses. For a gift card to exist, it means a business/ brand is trying to promote itself and simplify payments for its customers. This means there is a 99.9% chance that you can buy your desired gift card from the brand directly. All brands are unique, so there is no uniform way of buying gift cards from brands online. However, the most common way to buy a gift card from the brand online is to head to their website, search for “gift cards”, and you may either see a list of websites that sell their gift cards or an option to buy directly from them.

How To Purchase Gift Cards From Xbanka 

Xbanka is your next best option to buy gift cards online, especially if you are based in Nigeria or Ghana. This is because the majority of the international gift card brands either do not have a Ghanaian/ Nigerian outlet or take too long to deliver to these countries. Aside from the availability of almost every gift card you can think of on Xbanka, we are also a secure platform that gives you the most affordable rates in the market. 

Pros and Cons of Gift Cards

Pros

Gift cards can extend several benefits, like;

• They can be a decent alternative form of payment when one is not convenient to use cash or a prepaid debit card.
• Gift cards present a good way of gifting for the holidays or special events, and present the giver an opportunity to let the recipient buy gifts of their choice or sell the gift cards for cash, without deciding for them.
• You can use gift cards to control spending and avoid unnecessary bank charges.
• Gift cards can be simple and convenient to use.
• Gift cards are very safe to use, as they can be frozen in situations of theft or loss, without losing the money in the card.

Cons

Gift cards can also have some limitations, which are;

• Misplacing a gift card or losing it to theft presents a huge problem, especially if it has not been registered or you failed to keep the gift card number. There’s a high possibility of losing the entire card.
• You could be charged an extra fee known as the ” inactivity fee”  if you fail to use your card(this is done after 12 consecutive months)
• There’s a high possibility of forgetting little fractions of money left on the card after making a purchase; this money is wasted.
• Closed-loop gift cards pose a limitation to purchasing power since it’s not acceptable in every retail store.
• There could be extra fees for reloading reloadable gift cards.

How to Use a Gift Card

Now that you know all about the different forms and categories of gift cards, you might wonder, ‘What can I do with these gift cards?’ You can use gift cards for things like splurge-worthy shopping, budget-friendly buys, and special occasion saviours.

1.  Gift-Giving Extravaganza: Gift cards are perfect when it comes to presents, you know? Birthdays, anniversaries, holidays – you name it, they’ve got it covered! And the best part? You’re giving your loved ones the power to pick their dream gift.
2.  Worthy Shopping: Time to treat yourself! With a gift card in hand, you can go on a guilt-free shopping spree. Think about that fancy watch, the designer bag, or that shiny new gadget you have been eyeing. It’s like being a kid in a candy store, but this time, you’re the boss!
3.  Budget-Friendly Are you feeling the pinch, too? No worries! Gift cards got your back when money’s a bit tight. You can be smart with them and use them for everyday stuff, saving you some serious cash.
4. Special Occasion Saviors: Last-minute gift panics? You have got the ultimate lifesaver – e-gift cards! When time’s running out, sending an e-gift card can save the day, like a gift-giving superhero. No more stressing over gift dilemmas!

Common Gift Card Scams to Avoid 

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1. Bot Scams

Scammers use bots to search online for activated but unused gift card numbers, draining their balance before the owner can use them. To stay safe, activate your card only when needed and avoid storing or sharing its details online. In 2019, Gemini Advisory found hackers selling millions of stolen gift cards and payment details on the dark web. These were likely obtained by hacking online stores or injecting skimming malware into checkout pages.

2. Fake Cash Prize Scam

Also known as a phishing scam, this involves scammers contacting victims and claiming they’ve won a large cash prize. However, to claim it, they must pay a “redemption fee” with a gift card. Sometimes, they also ask victims to buy a gift card and send them the code. This type of scam happens daily, and unfortunately, many people still fall for it. If someone asks you to pay fees with a gift card, it’s a scam. Legitimate contests never require payment to claim a prize.

3. Fake Tech Support Scam

Like fake cash prize scams, this involves scammers posing as customer support agents from companies like Google, Microsoft, or Apple. They claim there’s an issue with your account and insist that you must provide gift card details to resolve it. No legitimate tech support will ever ask for payment via gift cards. If you receive such a request, hang up immediately and report the scam.

Tips for Using Gift Cards

In this modern world, gift cards are considered the best gifts. These are desirable gifts during holidays and on special occasions. In 2020, gift cards remained the most desired items to give and receive. In 2021, again, people will be buying, selling, and using gift cards. There are several types of gift cards these days, including Amazon gift cards, Google Play Gift cards, iTunes gift cards, Sephora gift cards, and many more. Have you got some cards? Get ready to use them in a few interesting ways. These are not just the cards to give and receive. Here are 5 important tips for using gift cards:

1. Avail Gift Card Deals, Sales, Coupons!

Thanks to gift cards, you can now avail many gift card deals, coupons, and in-house sales. There are often rewards against gift cards in different stores. Find coupons and promotional codes to use the cards. So, stacking your gift cards in one ideal way to use them!

2. Purchase Gift Cards for Less than Face Value

At times, you think there are unwanted gift cards in your collection. Well, don’t waste them and let them go somewhere. There are gift card resellers who tend to buy them at discounts. Remember, these cards are not just gift items!

3. Use Gift Cards at Multiple Brands

If one brand does not offer a great sale, you can try many others. You should try multiple brands and avail all the sale deals against the gift cards.

4. Keep Yourself Aware of Gift Card Deals

Now, that’s important; stay updated! Regularly visit different merchants’ websites and know the sale deals and promotions. Also, you can ask them to inform you regarding the gift card deals when they are active. So, this is how you can avoid letting your gift cards go to waste.

5. Sell Gift Cards for Cash!

One perfect way of using gift cards is actually to sell them. There are several platforms where you can sell your gift cards and get cash against them. Xbanka is one of the trusted platforms where you can sell all gift cards and get instant naira. All you need to do is create an account, sign up with them, and start selling your gift cards. They offer excellent exchange rates and are instant buyers. Earning through selling gift cards: what a way to use your gift cards?

How To Sell Gift Card 

Interested in selling gift cards? The first thing you need to do is sign up for an account the Simply search for the Xbanka website, create an account, and log in.

1. Choose the gift card under the gift card category
2. Enter the value of the card you want to sell.
3. Submit your request
4. You will receive a response from the platform in less than 5 minutes 

CONCLUSION

Gift cards are popular for their convenience and versatility, available in different types such as closed-loop and open-loop, and both physical and digital forms. They can be purchased in-store or online, and are beneficial for both individuals and businesses. Gift card scams are rampant, especially online, so it’s best to avoid them. The best way to utilize gift cards in Nigeria is to exchange them for cash. For a smooth and reliable experience, trade your gift cards on the Xbanka platform.

FAQ’S

1. Why do I need a gift card?

Gift cards can help with your budgeting. If you have a particular amount target you want to spend in a month, gift cards can come in. Instead of making purchases that amount to every transaction incurring extra charges, get a gift card of that worth and use it instead.

2. How do gift cards expire?

Bank-issued gift cards, often branded with major credit card logos, are subject to both federal and state regulations. These cards generally have a five-year expiration period, but may include inactivity fees. It’s important to check your specific state regulations with these cards.

3. Can you take money off a gift card at an ATM?

You may withdraw cash against the balance on most Mastercard prepaid and gift cards at any ATM. However, not all prepaid and gift card issuers allow ATM or foreign transactions. Be sure to check with your card issuer to ensure that these types of transactions are permitted.

4. What are the benefits of buying gift cards?

Gift Cards are fairly safe and simple to use. You can load money on the card, which is then used for shopping by the recipient. As this amount is not linked to any bank account or credit facility, it minimises the possibility of fraud. Plus, unlike cash, when lost, you can get the Gift Card blocked and reissued.