What is a gift card?
A gift card is a prepaid stored-value money card, usually issued by a retailer or bank, that can be used as an alternative to cash for purchases at a particular store or related businesses. Some major gift card issuers include Visa, Mastercard, American Express, and Discover. Gift cards come in different forms including physical plastic cards, e-gift cards sent by email, and virtual debit cards added to digital wallets.
Gift cards provide a way to give someone the ability to buy a product or service of their choice. They are given as gifts for birthdays, holidays, and other special occasions. Gift cards are also often used as promotional tools by retailers and restaurants.
When you purchase a gift card, you are paying upfront for the value stored on the card. The recipient can then spend up to that prepaid amount wherever the card is accepted. The funds do not have to be spent all at once and can often be used across multiple transactions.
Physical Gift Cards
Physical gift cards have an identification number and/or barcode that is scanned to authorize payment. They may have a magnetic strip that needs to be swiped at the point of sale. Some also have a scratch-off area that reveals a PIN code needed for online or phone purchases.
Most physical gift cards have the logo of the issuing retailer, restaurant, or payment network on the front. They often come packaged in a folded paper sleeve or decorative box. When giving a physical gift card, make sure to also provide the original receipt showing its activated value.
E-Gift Cards
E-gift cards are digital versions of gift cards that are sent via email. The recipient simply prints out the attached gift card or displays the emailed version on their mobile device for redemption. E-gift cards provide a convenient electronic delivery method for long distance gifting.
When you purchase an e-gift card, you may customize it with a personal recipient name, message, and delivery date. The emailed gift card includes instructions for claiming the funds as well as any needed barcode or redemption code. Some e-gift cards are also integrated into mobile payment apps.
One advantage of e-gift cards is that they allow you to safely gift funds instantly from anywhere without having to send a physical card in the mail. You also have the ability to buy last minute digital gifts up until the moment of gifting.
Virtual Debit Gift Cards
Another digital gift card option is a virtual debit card added to a digital wallet. Apple Pay, Google Pay, Samsung Pay, and other mobile wallets allow you to store virtual gift card funds that can be used just like a regular payment card.
To redeem this type of gift card, the recipient scans their digital wallet barcode or taps their mobile phone at checkout to access their prepaid balance. These virtual debit gift cards provide the convenience of having gift funds stored directly in a digital account accessible from a smartphone.
Checking a Gift Card’s Balance
Before using a new gift card, it’s always a good idea to check the available balance. Here are some ways to check a gift card balance:
For Physical Gift Cards
– Call the 1-800 number listed on the back of the gift card. Follow the automated system prompts to check your card balance.
– Visit the gift card company’s website and enter the gift card number and pin to view the balance online.
– Scan the barcode or scratch off the sticker on the gift card to reveal a website or phone number where you can check the balance.
– Bring the physical gift card to the issuing store’s customer service desk and ask an employee to check the balance for you.
For E-Gift Cards
– Log in to your e-gift card account, if you created one when purchasing. The balance will be visible in your account.
– Open the original e-gift card email and look for balance information provided. Often an “amount remaining” will be stated.
– Follow any check balance instructions provided in the e-gift card email. Sometimes a website or phone number specifically for balance checks will be listed.
For Virtual Debit Gift Cards
– Open the digital wallet app on your mobile phone and find the stored gift card. Many wallet apps will display the gift card balance on the card image.
– Tap into the gift card account in your digital wallet to view balance details. There may also be an option to refresh the balance.
– Call or check online if the virtual gift card provider has a separate website or phone number for balance inquiries.
Checking a gift card balance in advance prevents any surprise about whether funds are available when you go to redeem your gift card. You can also monitor the balance as you use up the prepaid amount to see how much is left.
Using a Gift Card In-Store
When you are ready to use a gift card in-person at a retail store, here is the typical process:
Physical Gift Cards
1. When making a purchase, present both the gift card and any additional payment at checkout. Let the cashier know you will be using a gift card as part of the payment.
2. The cashier will scan the gift card barcode or swipe the magnetic strip. This allows the point-of-sale system to identify the card number and pull up the prepaid balance.
3. If needed, provide the PIN number for the gift card, often found on the back of the card or beneath a scratch-off area. This PIN allows the store to verify the gift card is active.
4. Tell the cashier how much of your purchase you would like to pay with the gift card. The balance will be deducted from the gift card.
5. If your purchase total exceeds the gift card balance, be prepared to pay the remaining amount with another payment method.
6. The cashier will hand the now-activated gift card back along with your receipt showing the amount applied from the gift card towards the transaction.
E-Gift Cards
1. Open your e-gift card email on your mobile phone when you are ready to redeem. Show it to the cashier or have them scan the gift card barcode displayed.
2. Tell the cashier how much you would like to put towards your purchase from the e-gift card. They will deduct this from the displayed balance.
3. Pay any remaining balance using another payment method. You may also be able to apply multiple e-gift cards from different emails in the same transaction.
4. The cashier will return the original e-gift card email to you as your gift card receipt. It will show the updated balance.
Virtual Debit Gift Cards
1. When checking out, tap your mobile phone on the contactless card reader or scanner. Many phones will automatically open the default payment app.
2. If prompted by your digital wallet, choose your virtual gift card to redeem. You may also need to unlock your phone and/or authorize with a fingerprint or facial recognition.
3. Tell the cashier how much you want to pay from the gift card balance through the digital wallet transaction.
4. Pay any remaining amount due with another form of payment from your digital wallet or a physical payment method.
5. The transaction receipt will separate out the amount paid from your virtual gift card funds.
Using a Gift Card Online
Gift cards can also be redeemed virtually for online shopping and restaurants. Here is how to use a gift card for online purchases:
Physical Gift Cards
– Find the gift card number, often on the back or front of the card, to enter into the website payment field.
– Copy the PIN from beneath the scratch-off area on the gift card and enter it when prompted.
– Enter the card security code if the website requests it. On gift cards this is usually the last 3 digits of the card number.
– Input the card zip code if required. Try using the default zip code 12345 or look up the issuer zip code.
– Enter the gift card dollar amount you want to apply at checkout. Complete any remaining balance with another payment method.
E-Gift Cards
– Open the e-gift card email and copy the displayed gift card number into the payment field.
– Find and enter the e-gift card PIN or verification code provided in the email.
– Follow any additional prompts that require inputting the recipient name, expiration date, or security code stated in the e-gift card.
– Enter the e-gift card dollar amount to redeem and complete the transaction with another form of payment if needed.
Virtual Debit Gift Cards
– When checking out, choose your digital wallet option such as PayPal, Apple Pay, or Google Pay.
– Select the virtual gift card loaded in your digital wallet as the payment method.
– Authorize the payment using your wallet login, phone unlock, or biometric authentication.
– Enter the amount to pay from your virtual gift card balance. Pay any remaining total with another payment method stored in your digital wallet.
– The transaction will be completed using the funds from your virtual debit gift card where accepted online.
Using a gift card online provides a convenient way to shop from merchants that accept card-not-present payments. Make sure to note the remaining gift card balance for future reference.
Splitting a Purchase Between Gift Card and Other Payment
When your gift card balance only covers part of the total transaction, you can easily split the payment between the gift card and another form of payment:
In-Person
– Tell the cashier upfront you will be splitting the payment between a gift card and a credit/debit card or cash.
– When they process the gift card, state the specific amount you want to put on it towards the transaction.
– The cashier will enter this amount and deduct it from the gift card balance.
– Provide your additional form of payment for the remainder of the purchase total after the gift card piece is applied.
Online
– Look for a “split tender” or “use multiple payment methods” option during online checkout. This allows dividing a purchase across different cards.
– Enter your gift card information into one payment field and the remaining amount due in another.
– The website will process each payment method for the allocated part of the overall total.
– Some sites may require contacting customer service to split a purchase between a gift card and other form of payment.
Phone/Mail Orders
– Let the operator or order representative know upfront you will be splitting the payment between two sources.
– Provide the gift card information and tell them how much of the total you want to apply as the first payment.
– Give the additional payment details and amount to cover the remainder of the purchase.
– The order will be processed using both payment parts to complete the full transaction.
Split tender allows gift cards to be easily combined with other forms of payment when the balance itself is not enough to cover the entire amount due.
Checking Your Gift Card Balance
It’s helpful to monitor your gift card balance as you use up the funds over multiple purchases. Here are some ways to check the remaining balance:
In-Store
– Bring your physical gift card to the customer service desk or checkout counter in the issuing store.
– Ask an employee to scan your card or look up your card number to check the balance.
– They will let you know the current dollar amount left on the gift card available for future use.
Online
– Log into the gift card website, set up an account if required.
– Enter your gift card number and PIN when prompted to access the account balance details.
– The site will display the dollar amount remaining on your gift card that can still be redeemed.
By Phone
– Locate the 1-800 number printed on your physical gift card or provided in your e-gift card email.
– Call the number and follow the automated system options to check your balance.
– You may need to enter your gift card number and PIN code.
– The automated system will speak or display the account balance. Write this amount down for your records.
Regularly checking the remaining balance ensures you don’t over-commit what’s left on your gift card for future purchases. Tracking periodic balance updates also helps identify any unauthorized use.
Issues to Avoid
To properly use your gift card and avoid potential issues, keep the following tips in mind:
– Gift cards can not be redeemed for cash or cashback except where required by law. The funds must be spent on purchases only.
– Avoid losing physical gift cards or email e-gift cards. You likely cannot get replacement cards or the balance transferred.
– Do not buy gift cards from unverified third party sellers. Only purchase directly from the merchant or established retailers.
– Use your gift cards in a timely manner. Gift cards may expire and get drained by dormancy or maintenance fees if left unused for too long.
– Protect your gift card PIN code. Never share this number as it can lead to unauthorized access and loss of funds.
– Keep copies of gift card receipts and e-gift card emails showing the activated balance and any updated amounts after purchases.
– Contact the gift card issuer immediately if your physical or virtual gift card is lost, stolen or fraudulently accessed so they can freeze the unused funds.
Frequently Asked Questions
Can you use a gift card at any store?
No, gift cards are usually only redeemable at the merchant or affiliated businesses that issued the card. Generic prepaid cards from Visa, Mastercard, Amex, etc can be used anywhere those cards are accepted.
Do gift cards expire?
Yes, most gift cards expire 6 to 24 months after activation. E-gift cards may have shorter 3 or 6 month expiration dates. The card will become unusable after the printed expiration, unless prohibited by state law.
Can you exchange a gift card for cash?
Typically no, except where required by certain state laws. Most gift cards cannot be exchanged for cash back, only for merchandise or services from the issuing merchant.
Can you get change back on a gift card?
If your purchase total is less than your gift card value, most retailers will not give cash change back. Any remaining balance will stay on the card for future use by the gift recipient.
What if I lose my gift card or PIN?
Unfortunately lost or stolen gift cards most likely cannot be replaced. Contact the merchant right away in case they can freeze the account and remaining funds. Without the card number or PIN, the balance is often unrecoverable.
How do I check if a gift card has been used?
Call the gift card company or visit their website to check your balance. You can also present the physical card to the merchant’s customer service desk and ask them to check the status and available funds.
Can you buy gift cards with a gift card?
Typically no, you cannot purchase another gift card using gift card funds. Merchants usually prohibit exchanging one gift card for another to prevent illegal money laundering.
Gift Card Type | Where It Can Be Used | Balance Check Options |
---|---|---|
Physical Retail Gift Card | At the issuing retailer locations only | By phone, online, or in-store |
Virtual Visa/Mastercard Gift Card | Anywhere Visa/Mastercard is accepted | By phone or online |
E-gift Card | Online or in-store at issuing merchant | Email account, merchant website |
Restaurant Gift Card | At the issuing restaurant chain | By phone, printed on receipt |
Conclusion
Using a gift card requires following the appropriate redemption process depending on the type of card and where you plan to use it. Check the balance in advance and note any applicable fees or expiration policies. Make sure to monitor the remaining balance as you spend down the gift funds. With proper use, gift cards provide a convenient gifting and payment option.