One can argue that the holiday season is the best time to send gifts. But, we can agree without a doubt that there is no particular time better to gift someone. Also, it is agreeable that a gift card is the best kind of present you can offer. But the million-dollar question remains, what are the best gift cards to give? Or are virtual gift cards better than traditional physical gift cards?
This post discusses everything you need to know about digital gift cards. More specifically, you will learn what they are, how they work, and how they differ from physical cards. In addition, we will discuss the best virtual gift ideas and tips for choosing and sending the ideal e-gift cards. So read on to the end for insights.
Let’s dive in.
Table of Contents
What are Virtual Gift Cards?
Virtual gift cards, also known as digital or e-gift cards, are the electronic version of the standard physical gift vouchers. They are virtual prepaid cards with a specified purchasing value. Think of an e-gift card as a temporary virtual cash card or an e-wallet preloaded with a certain amount of money or purchasing power. In other words, e-gift cards are electronically generated vouchers sent via SMS or email as text in the form of unique codes.
Virtual gift cards are usually issued by online stores to be used as an alternative payment method in providers’ stores. Still, banks and other financial institutions with digital wallet services also sell e-gift cards for shopping in businesses that accept online payments.
Like traditional physical cards, e-gift cards are typically purchased by individuals or organizations and offered to someone else as a gift. Businesses also present them as an incentive to entice buyers to return to the store.
Physical vs. Digital Gift Cards
Typically, there is no significant difference between the two forms of gift cards. The only difference is that virtual cards do not utilize any tangible plate. Instead, you buy a series of unique codes. Other differences come in the card’s efficiency, convenience, and other benefits and cons. Essentially, virtual gift cards are more efficient and convenient than physical ones. They are also safe and secure, and easy to use.
How E-Gift Cards Work
E-gift cards work in the same way as physical cards. The giver buys the card (online), loads money, and sends it to the receiver. The only difference is that here, the recipient receives the card in the form of a text.
Upon receiving the code, depending on the card type, the recipient can visit any or a specified store and redeem the voucher for his desired item or service. Usually, the store provider of the card offers an option to pay through gift cards. All the buyer has to do is enter the unique code at the checkout.
Still, note that virtual gift cards can only be used in online stores or onsite retail shops that accept online payments.
Types of Virtual Gift Cards
There are two main types of e-gift cards – open and Closed Loop gift cards. Typically, the cards vary depending on the issuer and acceptance basis.
Open Loop Cards
As the name suggests, the open-loop cards are usually open for use in any store that accepts online payments. In other words, the open-loop gift cards do not specify the store or retailer where you can redeem the voucher. Typically, these cards are issued by banks and other financial institutions, including credit and debit card firms. They are the Best Gift Cards to Give Best E-Gift Cards due to their unlimited redeemability.
Closed-loop cards
Unlike open-looped cards, these cards are limited to a specific store. They are usually issued by retail shops and can only be redeemed at the store provider or its branch. Think of a closed-loop card as an e-gift for a particular merchant like amazon, or Apple, among others.
Still, under the two forms of gift cards, there are two subcategories – reloadable and non-reloadable cards.
Are E-Gift Cards Safe?
E-gift cards are safe, sometimes considered safer than physical cards. This is primarily because they are generated and sent directly to the receiver electronically from the provider. As such, there is no third party involved in the transmission. Still, it is recommended to do due diligence before buying a gift card online. Keep in mind that purchasing e-gift cards online involves giving out a lot of personal information. As such, be sure to buy a gift card from a trustworthy provider.
How to Choose the Best Gift Cards to Give
Choosing the best e-gift card to give doesn’t have to be overwhelming. When buying a gift card online, you only need a general idea of the recipient’s desires and preferences. The idea will help you narrow down your choices from the dozens of virtual gift ideas on the net. if you are unsure about the recipient’s desires, buying an open-loop gift card is recommended. Thus, the recipient will not be limited to certain options.
E-Gift Cards Pros and Cons
Pros
- Speedy deliverability
- Unlimited purchasing power – numerous merchant accepts online payments
- Unlimited flexibility
- Easy to track usage
- Easy to use
- Safe and secure payment method
E-Gift Cards Cons
- Nearly impossible to get a refund with digital gift cards
- A lot of personal information is disclosed when purchasing the gift card
Final Words
E-gift cards are essentially the best reward you can give your loved ones. The good thing about e-gift cards is that they do not limit gift choices. Interestingly, there are hundreds of viable virtual gift ideas on the net that can help you select your ideal gift. As such, choosing an ideal gift to offer or buy using digital gift card should not be overwhelming. Still, it is worth noting that they are redeemable for products or services. They cannot be redeemed for cash.