Gift cards have become a popular and reliable way to make purchases, give meaningful gifts, and even manage spending with ease. They serve as a flexible payment option that allows users to shop online or in-store without the need for cash or a debit card. These multiple uses of gift cards due to convenience, speed, and wide acceptance make them a smart choice for both personal and everyday financial use. In this blog, we'll explore "what are gift cards used for?", their benefits and much more! Let us start!
Uses of Gift Cards
Gift Cards as a Marketing Strategy for Business
Use of gift cards as a marketing strategy is getting popular because many companies are now using it as a marketing tool. The strategy is that when any customer receives or buys a gift card, they're encouraged to shop more and discover the brand's services and products. For example, if anyone gets an Apple gift card as a gift, they'll get excited about exploring more options from Apple's website. This marketing strategy not only strengthens the engagement of the customer but also increases repeat purchases.
Gift Cards as Motivation Tool for Employees
Many companies are opting for gift cards as a motivation tool for employees. This is considered as one of the most practical uses of gift cards to appreciate employees. Instead of relying on traditional bonuses, companies are now giving them physical and digital gift cards as a recognition or reward. Offering them gift cards as incentives not only improves employee satisfaction but it also creates a positive work environment.
Use of Gift Card as a Payment Option
One of the most common use of gift cards is a secure payment method. Shoppers can use gift cards to buy anything from in-store or online store. This eliminates the need to carry cash or credit card, which also includes additional charges. With gift cards, users can easily manage spending and pay for services on a wide range of platforms like Steam or Amazon.
Note: Make sure to check the gift card terms and conditions as well before making any purchase.
Use of Gift Cards as a Source of Cash
Many people who don't want to buy anything online can also turn their gift cards into cash. There are different gift card trading apps in Nigeria like Cardgdoal where you can sell your gift card for cash. This is a great option for those who receive foreign gift cards but want the local currency.
How to Sell Gift Cards on Cardgoal?
- First of all, download the Cardgoal app and log in to your account. If you are a new user, you can register yourself by using a valid email address.
- On the home screen, navigate to the gift card options. Select the gift card you want to sell.
- Enter the gift card details like right currency and category. Upload a clear image of your gift card
- Proceed with the "Start Trade" option and you'll get your Naira in your Cardgoal account right away. You can withdraw and use cash anytime. If you don't want to use cash, you can even pay your bills or buy data on Cardgoal as well!
What is the Use of Gift Cards as a Financial Budgeting Tool?
You may wonder how we can use a gift card as a budgeting tool. It is possible to manage your finances if you have a gift card or buy one. People also buy gift cards to set their spending limits. For example, buying an Amazon gift card with a fixed amount can help you control your spending and stay within your budget. On the other hand, you can easily track how much you have left on the gift card by checking Amazon gift card balance.
Disadvantages of Using Gift Cards
While gift cards offer plenty of convenience and flexibility, they also come with a few drawbacks that users should keep in mind:
- Limited Usability Most gift cards can only be used at specific stores or platforms. This means if the retailer doesn’t have what you need, the card’s value may go unused.
- Expiration Dates Some gift cards come with expiry dates which can reduce their value over time if not used promptly.
- Risk of Loss or Theft Once a gift card code is lost or stolen, it’s difficult to recover the balance. Unauthorized users can spend them without the owner’s consent.
- Scam Vulnerability Gift card scams are quite common, especially online. Fraudsters may trick people into buying cards and sharing codes like it sometimes happens on social media platforms like Instagram. It’s always safer to buy from verified platforms and always check the user reviews.
- No Cash Refunds
- In most cases, the balance on a gift card cannot be converted back to cash by the retailer. Once it’s redeemed, any leftover balance usually stays locked to that specific brand.
FAQ's
- What are gift cards used for?
They're used to shop online, pay for services, send as gifts, as an incentive for the employee and much more.
2. Can I use a gift card online?
Yes, most gift cards can be redeemed online on websites like Amazon or iTunes.
3. Do gift cards expire?
Some gift cards do expire, depending on the brand. Always check the expiry date.
4. Can I use my gift card in another country?
No, most cards are region-specific and work only in the country bought.
5. What if I lose my gift card?
It's hard to recover once lost, so keep your code safe.
6. Can I sell my gift card for cash?
Yes, you can trade gift cards for cash on platforms like Cardgoal.
7. How do I check my gift card balance?
Visit the brand’s website or app and enter your card details.
8. Are there any fees for gift cards?
Some have small activation or maintenance fees.
9. Can I use a gift card more than once?
Yes, until the balance runs out.
10. What types of gift cards are available?
There are physical and digital cards from brands like Amazon, Steam, and Apple.