Gift Card - What is Gift Cards? What are the usage of Gift Cards?

 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 person.

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.