Gift Cards...
Good or Bad?
"W
hen all else fails give them a gift card." That‘s the advice most people will give you — but is it really such good advice? Let’s consider this option from the point of view of the receiver.
First, they will consider it just another way of getting money since that’s what the card represents (example: pre-paid Visa card). Next, most recipients feel you didn’t take any personal interest in knowing what they would like as a gift (use gyftit.com and become each other's GyftBuddy). Lastly, a slim card in an envelope is no surprise unless it contains a very large sum.
We are not against gift cards by all means. They serve the economy of any country well and should be encouraged. They’ve even become so popular that scammers have asked people to pay them in iTunes cards. But as gifts go, it’s a bit disappointing to receive a gift card, especially if the card is from a store or source that is not used by the giftee.
Let’s examine the positives. The cards are available everywhere and a last-minute gift can be purchased at any time. Secondly, they reflect some of the most popular brands out there — and here are some of them: the iTunes, Walmart, and Target cards, pre-paid Visa and American Express cards, and the ubiquitous Amazon card. There are countless more, just look around in any grocery, pharmacy or gas station. Check out most retail stores. They either push their own store’s cards or a selection of other brands. We've even seen the dollar store offering gift cards. Image getting a 10$ gift card to the dollar store!
When you receive a prepaid Visa or Mastercard you can use it like money and even make cash withdrawals. That’s a nice option and they are even reloadable, however they may have an activation fee and a time limit for spending. Retail gift cards are easier to use. Here is a website with some advice: nerdwallet.com
If you’ve considered giving a gift card you first need to purchase it. Each card has instructions for validation but all we can say is keep your receipts in case there are any problems (and there’s usually a problem sooner or later). Buy it from a physical storefront (avoid a deal from someone on the street or selling it on-line) unless it’s a reputable dealer such as paypal.com because you can get burnt and embarrassed when the gift you gave turns out to be counterfeit. You both lose.
For a specific gift card for a man, check out this website: gearhungry.com
And if it is a woman check out: giftcards.com
Buying gift cards for tweens, teenagers and young adults check out: giftcards.com and of course the amazon.ca gift card and the amazon.com gift cards in many amounts.
Did you know that such a thing as the digital e-gift-card exists? Companies like Amazon, Target, and Walmart will let you send a digital card that can be spent online or at brick-and-mortar outlets. An e-card with a code is emailed to the recipient.
If you decide to give a monetary gift card (Visa or MasterCard), the question arises how much monetary value do you assign? Researching the Internet we found that for casual friends or acquaintances a $10 to $20 range is usual. (Those of you from other countries reading this just adjust the dollars to your own currency.) If gifting a close friend or relative, the $30 to $75 range should make them happy. Avoid looking cheap for a wife or husband — $75 and higher (as high as you can go) should be the rule. These people are the closest to you so don’t “p%$$” them off (you have to live with them)!
Here’s an interesting tip. Many gift cards are sold with discounts or other benefits — so buy a few and use them yourself for purchasing the gifts (with the discount). Save some money at the same time!
Most of the time when you purchase something with a gift card it never matches the amount on the card. Either money has to be added or you’re left with a small balance. It’s a hassle to try to redeem that last $1.12 on a $50 gift card. So the card is dis-carded (pardon the pun). It saves the card issuer some money. As a matter of fact, this is part of their business plan. Card sellers rely on you usually leaving a small balance or just not redeeming the card at all.
Some cards have expiry dates and lose a bit of value month to month in maintenance fees etc., so when purchasing ask if the card loses value over time. This practice is being slowly discontinued as local and federal governments have made laws against it.
Happy gift giving!
Copy these prompts. Paste them into your favorite AI application. Get more information.
On Gift Card Economics & Business Models
“How do companies profit from unused gift card balances, and what laws exist to protect consumers from expiration dates or fees?”
“What is the total annual value of unredeemed gift cards in the U.S. (or globally), and how does that impact the economy?”
“How do retailers account for gift card sales and redemptions in their financial statements?”
On Consumer Behavior & Psychology
“What do studies show about how people perceive receiving gift cards vs. cash or personal gifts?”
“Why might some people prefer store-specific gift cards over prepaid Visa/MasterCard options?”
“How has the rise of digital gift cards (e-gift cards) changed gifting habits during holidays or special occasions?”
On Security & Fraud
“What are common gift card scams (like the iTunes scam mentioned), and how can consumers avoid them?”
“How can you verify if a gift card is legitimate before giving it as a gift?”
“What should you do if you receive or purchase a counterfeit gift card?”
On Gift Card Use & Practical Tips
“What are the best ways to use small leftover balances on gift cards?”
“Which major retailers allow gift card consolidation or balance transfers?”
“Are there apps or websites that help you track, trade, or sell unwanted gift cards?”
Cultural & Social Aspects
“How do gift-giving customs involving gift cards differ between countries?”
“Are gift cards considered impersonal in some cultures? What are more personal alternatives?”
“What are the environmental impacts of plastic gift cards vs. digital ones?”
On Specific Demographics
“What are the most popular gift cards for teens and young adults today?”
“Are there gender differences in gift card preferences, as suggested by gearhungry.com vs. giftcards.com?”
“How should you choose a gift card for someone if you don’t know their preferences?”
Some suggested AI sites are: ChatGPT, Claude.ai, Perplexity.ai, Deepseek and others.
By JM Pietron
Photo Credits: See Acknowledgements