What is a gift card?

A gift card is a prepaid debit card that contains a particular amount of money ready for use for a multiple choice of purchases. Gift card generally issued by a retailer or bank which can be used as an opportunity to cash when making a purchase at any place where the card is accepted. You can use these cards to purchase items online or in physical stores where the card you have is accepted.

Gift Card is a superb gift that gives someone the flexibility and freedom to buy what they want.

Why not use gift cards which can make your business quite profitable, and that gift cards can support your business without you having to do much drudgery. However, there are a good deal of other reasons that you should be selling gift cards.

Gift cards are prepaid debit cards brimming with funds for future use. There are commonly two types of gift cards: open loop card and closed loop card. Both types are typically used online.

Closed Loop Gift Cards

Closed loop gift cards are often changed by stores, purchase has allowed a cardholder anything from that defined retailer. Closed loop cards can only be used with a single merchant. These cards can usually be used interchangeably at any of its affiliated stores,  Old Navy, Banana Republic, Athlete and including Gap Closed loop gift cards will mostly not require any activation fees.

Open Loop Gift Cards

Open loop card offer the same as cash or more precisely, a debit card or credit  that can be used at any merchant where that card is accepted, as well as online. Many of the major charge or credit card processors/issuers, like Visa, American Express, Master Cards and Discover offer open loop cards.

Open loop gift cards also have the profit of serving as a standard prepaid card. These cards are generally  reloadable and permit the user to add funds on their own as well. Open loop cards will many times require an activation fee of approx. $5 (350 – 400 Rs) which must be paid at the card’s purchasing time.

What are E-Gift Cards? 

E-Gift Cards are also available electronically. The recipient of an e-Gift Card receives it forward with the card number and PIN and  in her email. The one who has bought it also receives the PIN as a confirmation of the email sent to the recipient. E-Gift Cards can be used to shop online or in stores like a physical Gift Card.

Why do companies like to sell e-gift cards?

Gift cards offer  freedom for your sales to expand. Unlike discounts that divest the value away from the items you sell, when you deal in  gift cards, it will keep customers coming to your shops to use the card’s full value. Gift cards also provide a manner for new buyers to get to know your brand. What’s why companies like to sell gift cards

The gift card business is all about brokering gift cards for profit. You find someone who has an unwanted and unused gift card, you find someone you need an unused gift card.  Any person buys from the seller and sells to the buyer. If the buyer buys at 80%, you can buy from the seller at 70% and keep 10% as profit.

Gift cards good for business?

Gift card buying helps small businesses because it inserts  money in the bank now, but is paid back (in products or services) slowly when customers come in to redeem their cards.

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