What Are Gift Cards Used For? – This is one popular question on Google today, mostly asked by average person and some gift card traders who started trading newly.
Yes! I know you’re also asking this same question whenever you hear people talk about buying or using gift cards.
You don’t need to worry yourself again or keep asking the same question; this page is the last bus stop to get all the answers about Gift cards.
Recently, Gift cards have become very popular in society, serving as a payment method or gift voucher for giving and receiving presents.
Cash payments have been the primary payment method before gift cards, making people carry money around and exposing them to risks of losing Cash.
However, people can move around freely while their Cash is converted into gift cards.
Gift cards are valuable and beneficial to business owners and customers, bringing the massive adoption of gift cards worldwide.
Many sources claim that gift cards are meant for only store transactions, but there are many other things gift cards are used for.
In this article, you will learn everything about gift cards, types of gift cards, what gift cards are used for, and the benefits of using gift cards.
What Are Gift Cards?
Gift Cards are gift vouchers preloaded with a certain amount of money or credits, which can be used to purchase items in retail and online stores.
You can redeem the gift card in the store, and then the monetary value will be used to purchase items.
Gift cards come in two different forms: Physical gift cards and digital gift cards, known as (E-codes).
These cards have the same value, and the only difference is the format of the card.
The physical gift card is often in physical form, which you can get anywhere, while the digital gift card is sent to your email.
Gift cards are available in different monetary denominations, including ($5, $10, $25, $50, $100, $200, $500), etc.
The most popular gift cards are; Amazon gift cards, Steam gift cards, iTunes gift cards, Google Play gift cards, Razer Gold gift cards, Sephora gift cards, etc.
Gift cards have gained widespread popularity due to their convenience, flexibility, and personalized touch.
Types Of Gift Cards
Here are the major types of gift cards we have today.
- Retailer-Specific Gift Cards:
These gift cards are tied to a particular retailer or brand.
They can only be used to purchase items within the issuing retailer’s store or online platform.
Examples include gift cards from popular clothing stores, electronics retailers, or restaurants.
- Open-Loop Gift Cards:
Open-loop gift cards are more versatile as they carry the logo of a major credit card company like Visa, Mastercard, or American Express.
These cards can be used at any merchant that accepts the corresponding credit card, expanding the range of options for the recipient.
- Closed-Loop Gift Cards:
Closed-loop gift cards are restricted to a specific network of affiliated merchants.
They often have partnerships with various retailers, allowing the cardholder to use them at any participating establishment within that network.
What Are Gift Cards Used For?
When you think of what gift cards can be used for, think of what money (Cash) can be used for.
Gift cards serve and represent money preloaded in a voucher which can be used to make transactions in a store.
Gift cards offer the same or more value than Cash. Below are some of the significant uses of gift cards in 2023.
- Use as a Gift
- Use to Purchase items
- Trade Gift Cards for Cash.
Let’s quickly discuss each of them and see other things gift cards can be used for.
1. Use As A Gift
Gift cards can be used as a Gift or as a Present to your loved ones, friends, customers, and even employees.
Since gift cards are an alternative value to money and can be redeemed in stores to purchase items, you can give out gift cards as gifts.
Gift cards can be the best gift you can ever think of giving out on holidays, for birthdays, or to loyal customers.
2. Use To Purchase Items
One of the popular uses of gift cards is for purchasing items, including goods and services, from stores after redeeming the card.
Gift cards are made available in many businesses and stores for quick payments and transactions.
You can only use gift cards to purchase items in retail stores where the gift cards are accepted or can be redeemed.
3. Trade Gift Cards For Cash
Do you know that another use of gift cards is converting and trading gift cards for Cash when you don’t need them?
Yes! You can trade or sell gift cards for Cash at the highest possible rates and get paid in Naira instantly.
The rates of gift cards sometimes are not stable, but you can always sell your gift cards or trade them for Cash at the best rates.
You can also trade gift cards you purchased at a low rate for Cash when the rates are very high and make more money.
The best place to trade gift cards for Cash is on the Ridima Platform; you can sell at the highest rate and get an instant Cash payment.
Other Popular Uses of Gift Cards
- Use for Employee Rewards and Incentives
- Use for Promotional Campaigns
- Use for Fundraising and Donations.
Benefits Of Gift Cards
There are many advantages and benefits of using gift cards available for you as a user and for businesses/stores where the cards are used.
Let’s discuss some of the general benefits of gift cards to know what gift cards are used for in Nigeria today.
1. Convenience and Flexibility
Gift cards offer convenience to both the giver and the recipient when using them for Gifting.
They eliminate the need for extensive shopping trips, reduce the chance of gifting unwanted items, and provide the freedom to choose from a wide range of products or services.
Also, it offers flexibility to individuals over cash payments and bank cards.
2. Increase Sales and Customer Loyalty
Retailers benefit from increased sales when customers redeem gift cards.
Often, recipients spend more than the card’s initial value, making it a valuable revenue source.
Additionally, gift cards can foster customer loyalty and encourage repeat visits to the issuing store.
3. Budgeting
If you spend carelessly without a budget, then gift cards can help you manage your spending budget.
Gift cards are preloaded with a certain amount, and your spending limit is finished once the amount is exhausted.
Hence, you can buy a gift card for the amount you wish to spend and avoid overspending with Cash.
4. Brand Awareness and Marketing
Gift cards help create brand awareness when businesses or stores issue gift cards to customers bearing the brand logo and details on the card.
The more gift cards are exchanged through people, the brand gains recognition from new and potential customers who will likely patronize the brand.
Retailers can also provide targeted marketing promotions and offers with the data of valuable customers who purchased or redeemed gift cards.
5. Reduced Fraud Risk
Gift cards offer a reduced risk of fraud compared to Cash or traditional paper gift certificates/vouchers.
Gift cards have unique identification numbers and are often associated with security measures, making them a safer alternative for retailers and users.
Gift cards reduce fraud by preventing you from falling quickly into deceit when you have only gift cards instead of Cash.
Frequently Asked Questions On What Are Gift Cards Used For
1. Can Gift Cards Expire?
Gift cards may have expiration dates, so it’s important to check the terms and conditions of each card. Some laws regulate expiration dates to protect consumers.
2. Can Gift Cards be Used Online?
Yes! Many gift cards can be used for online purchases. Make sure to check with the issuing retailer for their online redemption options.
3. What Happens if the Gift Card Balance is Insufficient?
If the gift card balance is insufficient to cover the full purchase, additional payment methods can be used to cover the remaining amount.
4. Can Gift Cards be Reloaded?
Some gift cards can be reloaded with additional funds, while others are designed for one-time use only. Check with the issuing retailer for reloading options.
5. What Should I do if my Gift Card is Lost or Stolen?
If you have registered your gift card, contact the issuer’s customer service immediately to report the loss.
They can assist you in recovering the remaining balance or issuing a new card.
Conclusion
Gift cards are valuable for different purposes, serving customers and businesses with great benefits, advantages, and usage.
Aside from the popular purchasing of store items and transactions, gift cards also have other use cases, which we have listed above.
And this has become more beneficial, whereby businesses can leverage gift cards to increase sales revenue and make the gifting experience attractive.
The benefits and uses of gift cards are exceptional and cannot be over-emphasized in today’s digital world.
This is everything you need to know when asking What are Gift Cards Used For in Nigeria today.
Remember, anytime you receive gift cards, or if you have any unused cards and wish to trade them for Cash, Ridima is here for you.
You can always buy and sell your gift cards directly on our platform via the website or mobile app and enjoy high rates with instant Cash payment.
Enjoy!
