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What Is a Gift Card ?

A gift card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases.

How a Gift Card Works ?

Gift cards are a form of prepaid debit cards loaded with funds for future use. There are generally two types of gift cards: open loop and closed loop cards. Both types can typically be used online and in for use for a variety of purchases. Many gift cards will have a minimum and maximum initial loading amount. A common minimum is $10, and a common maximum is $500. In some situations, they can be used to pay for a portion of a purchase with cash, debit or credit used to balance the expense. As a precaution to mitigate the risk of losses, many gift cards can also be registered online—a procedure which allows the remaining balance to be tracked and frozen if a card is lost. In this way, some gift cards are safer than cash.

A gift card is a type of prepaid debit card loaded with funds for future use.Gift cards are also given out by employers or organizations as rewards or gifts. They may also be distributed by retailers and marketers as part of a promotion strategy, to entice the recipient to come in or return to the store, and at times such cards are called cash cards. Gift cards are generally redeemable only for purchases at the relevant retail premises and cannot be cashed out, and in some situations may be subject to an expiry date or fees.