Gift Cards in 2023: Are They a Good Thing?

Gift cards have become a popular payment method over the years for both shoppers and gift-givers alike. Whether you want to treat yourself or surprise a friend, retailers everywhere offer a huge range of gift cards that can be used online or in-store. But with so many options, it can be tough to know where to start. Do you choose a physical card or an e-gift card? What is the benefit of using them over other payment methods?

This post will examine what you need to know about gift cards and whether they are a good thing in 2023.

What are gift cards?

Gift cards are a convenient alternative to cash when purchasing from your favorite store and come in various values. Some companies, such as Visa and America Express, have gift cards that can be used almost anywhere, but most store gift cards are limited to the services or products offered by that specific store. Gift cards can provide an easy and hassle-free way of shopping, but before you buy one, it is important to know the ins and outs of gift card values and restrictions.

Physical or e-gift cards?

Physical cards are generally plastic cards that look similar to credit or debit cards that can be issued by merchants for purchases in-store or as gifts to be used later. On the other hand, e-gift cards, or digital gift cards, don’t have a physical form but come with a unique code that can be redeemed at an online retail store. Some companies, such as Google, Amazon, and Walmart, offer both options for their customers. It is important to remember that physical gift cards can normally be used both in-store and online, but digital cards can only be used online.

What are the pros of using a gift card?

• Gift cards can make gifting easy and quick.
• They encourage people to buy something that they want rather than giving them cash gifts which can often be absorbed by household bills.
• If someone doesn’t like the car or wants to make some extra cash, they can look for places to sell gift card and get the money instead.
• They can be used to manage spending and avoid paying fees to the bank
• They can be frozen if stolen, making them a pretty secure payment method.

What are the cons of using a gift card?

• They can restrict the purchasing options available to the receiver
• Can come across as impersonal
• There is always the risk of the store closing down or the company going bankrupt and losing the value of the gift cards.
• Sometimes extra charges can be levied if using gift cards such as Visa and American Express
• If the card is not registered and it is lost, the balance can be lost
• There are often use-by dates, and the balance is wiped if they are not used by this date.

Gift cards can be a great choice for gift givers, but it is important to be aware of the restrictions. Will you buy one in 2023?