Introduction
A gift card is a prepaid stored-value card that contains a specific amount of money, which can be used to purchase products or services from a particular store, retailer, or brand.
They can be physical (plastic card) or digital (e-gift card), sent via email or as a unique code.
Gift cards have become one of the most popular gifting options worldwide — whether for birthdays, holidays, or as part of promotional campaigns. But why do people give gift cards instead of cash or physical presents? Let’s find out.
1. What is a Gift Card?
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Definition: A gift card is like prepaid money that can only be spent at specific locations or online platforms.
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Types:
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Physical Gift Card: Looks like a credit/debit card, comes in a plastic format.
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E-Gift Card: Digital code sent via email or messaging apps.
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Examples: Amazon gift card, Walmart gift card, Google Play gift card, Apple iTunes gift card.
2. Why Do People Give Gift Cards?
a) Personal Yet Flexible
A gift card says, “I know what brand you like, but I’ll let you choose what you want.”
It’s more thoughtful than cash but still gives freedom to the receiver.
b) Convenience
Gift cards are easy to buy, easy to send, and require no wrapping or shipping. Perfect for last-minute gifting.
c) Encourages Extra Spending
Studies show that customers often spend more than the card’s value when redeeming a gift card — a win for both the giver (more value to the receiver) and the business.
d) Avoids Wrong Gifts
No more awkward situations where someone doesn’t like your present. A gift card ensures they pick something they actually want.
e) Business Benefits
For businesses, gift cards help increase sales, improve cash flow, and attract repeat customers.
3. Pros and Cons of Gift Cards
Pros:
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Convenient and quick to send.
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Works for almost any occasion.
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Avoids the guesswork of buying gifts.
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Can be sent worldwide in digital format.
Cons:
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Some go unused (known as “breakage”).
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Can lose value if the company closes.
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Possible fraud if purchased from unreliable sources.
4. Popular Occasions for Giving Gift Cards
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Birthdays
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Anniversaries
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Holidays (Christmas, New Year, Eid, etc.)
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Graduation
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Corporate rewards & employee incentives
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Giveaway contests & promotions
5. Tips for Buying Gift Cards Safely
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Always purchase from official retailers or verified online platforms.
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Keep the receipt until the card is redeemed.
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For e-gift cards, send to the recipient’s verified email address.
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Avoid buying second-hand or from unknown sellers to prevent scams.
Conclusion
Gift cards combine thoughtfulness and practicality, making them a perfect gift choice for any occasion. Whether physical or digital, they allow recipients the freedom to choose what they want — while saving you the time and stress of picking the “perfect” gift.