- Easier than carrying cash, paying with a gift card is like spending someone else's money. When you shop, the purchase price is subtracted from the amount on the card, either making your purchase "free" or reducing the total amount you must pay out of pocket. Purchase them in certain denominations or determine your own gift amount; they fit any budget.
- Gift cards show exactly how much you spent on a gift. They are easy to buy because they are widely available. Almost all major stores carry them. They are easier to use than gift certificates, since most gift cards look and act like credit cards, and can be swiped as such at the register, where the purchase is deducted from the balance on the card.
- Purchase gift cards when you are at a loss as to what to give someone as a gift on a special occasion. When buying, check whether the card is assessed a service fee after a period of inactivity, such as after six months or a year. Determine that the proper amount is loaded onto the card before giving it to the recipient.
- There are two major types of gift cards: those that are only usable at specific retailers and those that can be used anywhere. Cards with a store logo on them are redeemable only at that store. Purchase them from a cashier at that particular retailer; alternately, some drugstores and grocery stores have a large selection of gift cards for other retailers. Major credit companies, like Visa and MasterCard, offer cards in certain dollar amounts that work at most retailers. With these, you can pay for gas or groceries, instead of spending them at a specific retail shop.
- Gift cards cannot be redeemed for cash and their purchase price cannot be reduced by coupons or discounts. The balance decreases after every use until there are no funds left. Also, they cannot be exchanged for a refund.
