Almost every household has a gift card. They are available in a wide variety of forms and denominations. These cards may come from a favorite retailer or restaurant, or they may function like prepaid Visa or MasterCard cards. In 2015, the National Retail Federation (NRF) expects total spending on gift cards to reach just under $26 billion, making them one of the most popular holiday gifts.
According to NRF's first holiday survey, released in October 2015, 58.8 percent of respondents expressed interest in getting gift cards, making them the most requested gift item for nine years. It is estimated that by the year 2025 the global gift card market will reach 510 billion U.S. dollars in size as per The European Business Review. Although gift cards are popular, there are also plenty of people who do not like to give them or receive them.
In this article, we will discuss a few advantages and disadvantages of giving and receiving gift cards, both from the perspective of customers.
Defining Gift Cards
Gift cards are used for purchases at physical locations and online stores as a substitute for cash and credit cards/debit cards. The two major types of such cards are then physical (Physical Cards) and digital (Electronic or E-Cards), since they can be used both online and offline.
A variety of gift card types and subtypes can be found online. They will, however, fall into the two major types we discussed earlier.
Difference Between Physical and Digital Gift Cards
Gift Cards that are digital are electronic specimen without a physical appearance. Shopping carts and checkout pages typically provide shoppers with unique numeric or alpha-numeric symbols. Normally, such codes are sent to their recipients' specified email addresses after they have purchased their gift cards online. An email that offers print-at-home may have been pre-designed by the seller.
Traditionally, physical gift cards come in plastic or paper form and are mailed or delivered by hand. It's also crucial that a merchant allows physical cards to be purchased when online shopping. In line with such leading online retailers as Starbucks, Chipotle, Target, and so on, ensure that such certificates are available electronically and in print.
Customers will enjoy an enhanced shopping experience thanks to an ample selection, whether it is a mobile app or a physical card.
Gift Card Advantages
The benefits of giving gift cards to shoppers are just as great. The numerous benefits of gift cards for customers include safety reasons and relief from the hassle of buying gifts for fastidious friends as follows:
Purchase and Application Are Easy and Convenient: Many countries consider gift cards a thoughtful gift given to customers under current social and economic conditions. Approximately 77% of Canadian shoppers plan to buy at least one gift card, making such vouchers an easy and familiar way to shop and give gifts as per Paystone.
Keeping Spending Under Control: The holiday season can be a challenging time to save money, especially if you're shopping for your loved ones. In order to avoid bank overdrafts and excessive spending, you may use gift cards for receiving offers or discounts.
A Wide Range of Choices Without a Time Limit: The process of shopping for gifts is time-consuming for both the giver and the recipient. Finding a present for one person isn't a big deal. A festive mood can be turned into a burden during the holiday season by a long list of items to buy. The advantage of gift cards is that they are not short-term investments. The recipient of a gift card usually has up to five years to redeem it.
A Cost-Effective Delivery Method: When shopping online, many customers expect free item delivery. Unfortunately, some retailers cannot offer this service. The possibility of emailing or printing vouchers at home makes it possible to avoid extra charges.
Offers Discounts: It is not a new concept to offer discounted certificates. Certificates may be offered at a discount of 5-10% to their actual value by some sellers, but they may also include an extra incentive for the buyer.
You should make sure your cards are distributed by credible retailers only to prevent fraud and scams.
Gift Card Disadvantages
After learning how gift cards can benefit shoppers both online and offline, let's look at their disadvantages. A voucher becomes a disadvantage when it is not integrated professionally and performed with the customer in mind. Despite this, buyers often face these cons:
A Very Easy Thing to Lose: Card registration and restoring balance access are not provided by all vendors. As with anything else, digital assets can also get lost. People do not want to invest money if they cannot recover their data.
It May Come Across as Impersonal: This is a yes and no disadvantage. It is certainly appropriate to use gift vouchers at certain times and places. Sending a card to a wanted location requires careful consideration of the recipient. Gifts that feature beautiful email templates, custom packaging, and personalized messages make them feel more special. As our society's attitude towards such presents changes, it is probably a matter of time.
There Is an Expiration Date: There is a time limit on vouchers. It is common for shoppers to forget to redeem tokens before they expire, as they don't receive a notice that their cards will soon expire.
There Are Extra Fees: In certain states, activation fees may apply. A person is likely to experience negative feelings when they have to pay a fee before they can receive a gift.
It's Store-Specific: Customers may feel forced to shop in a specific location with closed-loop cards and ill gift-givers' choice of retailer. Such presents are unattractive because they lack options.
It Is Not Refundable: There is nothing customers love more than the assurance of a money-back guarantee, which allows them to consider a purchase in more detail before making a purchasing decision. The majority of cards do not provide such opportunities.
In this article, we hope you've gained insight into whether offering gift cards is not always worth it as you may not want to keep unwanted gift cards. It's not because everyone offers gift tokens that it's the right gift to give; just because everyone uses them does not make them effective.
But there are still gift card advantages as it can still be used without having to claim them or make a purchase when you don't find it suitable. These kinds of gifts can be a worthwhile exchange for cash by selling both physical or digital gift cards at our website- Cash For Gift Cards because we consider them valuable.