What Are the Pros and Cons of Gift Cards

Gift cards are a popular way to purchase gifts for friends or family. They provide the recipient with the freedom to buy something they want, rather than receiving another sweater that they will never wear. But there are some pros and cons of giving gift cards that you need to know about before deciding whether or not this is an appropriate present for someone in your life.

Should I use gift cards?


What is Gift Card’s role in everyday life? Gift Cards are becoming increasingly popular, but some people question their utility. It’s easier for anyone to make a purchase with a credit or debit card than it is using an actual physical gift certificate. Although more and more retailers are accepting digital forms of payment like Apple Pay, fewer venues accept other alternatives such as discount vouchers or promotional codes. With this in mind, let’s take a look at what all that fuss is about when it comes to buying these plastic presents online or from stores that sell goods on consignment — even before we take into consideration any pros and cons associated with them.

Physical vs. Digital Gift Cards

Physical gift cards don’t exactly have the best reputation. As a result, many people have started turning to digital alternatives instead. However, there are still some advantages associated with the physical version too:

– They can be replaced if they get lost or stolen;

– Flexibility in terms of where you use them and for how much money

Digital Gift Card pros and cons are dependent on the recipient.

– A physical card can be bought at a more convenient location than one that only accepts digital forms of payment, such as an online store

– Purchase of eGift Cards is cheaper for certain retailers.

– You can buy them in bulk to give out during sales or promotions;

– Great way to promote your business if branded correctly

– They represent real money so they have some degree of security attached to them that virtual ones don’t always do

Conclusion: As you saw above there are pros and cons associated with both digital gift cards vs traditional but what really matters is finding out which option works best for each person receiving the present. It’s up to personal preference because it depends entirely on who will use these cards.

Prepaid Credit Cards vs. Retailer Cards


Prepaid credit cards are a great alternative to gift certificates and store-specific plastic cards, as they give the recipient an extensive amount of freedom. In fact, prepaid credit cards have become so popular that even some online retailers accept them in lieu of cash or any other traditional payment method because these types of vouchers never expire:

However, there is a downside to this financial management solution too – if you ever lose your card number and PIN then it’s impossible for you to recover either one without contacting customer service directly. And it’s always important to know your Prepaid Gift Card Balance. This can be frustrating when all you want is access to your funds again; especially during an emergency situation like needing money for medical care but there isn’t much people can do about it once its gone

Finally, we cannot forget to mention the fact that these cards are not available for purchase in all states, which is why it’s important to make sure you understand how they work before purchasing one.

Prepaid Credit Card pros and cons:

– They can be used worldwide; there isn’t any service fees associated with them

– Retailer specific gift cards only offer discounts at certain stores

– You don’t need a credit check or proof of income when applying for one like other financial products such as checking accounts do require

– Some issuers allow you to set up alerts so you know right away if your balance falls below a specified amount but this isn’t always an option depending on the issuer (and its typically more expensive)

– If someone steals yours then its gone forever and you will never get it back

Pros of Gift Cards

– Gift cards are easy to give

– No need for the purchaser to know the recipient’s tastes and preferences

– Receiving a gift card is less embarrassing than getting cash as a present, especially if it’s not in an envelope.

– If you lose your physical gift card, you can always get another one (just make sure that whoever gave it to you doesn’t think of themselves as tacky).

– The value of most prepaid credit/gift cards has no expiration date. However, some might expire after five years or so; this depends upon how they were purchased and who issued (credit unions tend to have shorter expiration dates than banks or retail store credit cards).

– You can use it to buy anything. – A perfect solution for the person who has everything, but doesn’t want what they already have.

– No need to go searching high and low in order to find a specific gift; they’re all right there at your fingertips (or on your phone screen).

Cons of Gift Cards

– No cash value, so it’s not a wise idea to get one of these as a present for someone who wants money instead.

– If you lose your physical gift card, there is usually no way to recover the amount on it (although some retailers will offer replacements in exchange for a fee).

– A major disadvantage when compared with cash or check: if you receive a prepaid credit/gift card and don’ to retailer because a gift card buyer will often spend more money than the face value at their due to impulse buying from those that don’t feel like.


When we think of gift cards, most people assume that prepaid credit card and traditional retail store-specific ones are the same things. However, this is not always the case as there can be some notable differences between them depending on how they work. For example, a Retail Store Specific Gift Card will have an expiration date which means you won’t be able to use it after a certain length of time has passed since purchase but if you’re sure about purchasing one for your friend or family member then why would you wait too long?

On the other hand, Prepaid Credit Cards do not expire so no matter when they were purchased their value stays intact until used up – meaning money in your pocket versus having to go back and buy another one. However, if you’re not sure about a particular individual’s spending habits then this may be an unnecessary risk especially since it takes up time to activate the card – meaning more effort on your part for something that could’ve been avoided by simply purchasing other options instead. But with you can easily activate the card, check the balance, etc.

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