Gift cards can be in two forms; open-loop and closed-loop. The advantage of an open-loop gift card over a closed-loop gift card is that it can be used anywhere the branch of the card is accepted. On the other hand, a closed-loop gift card can only be used at a specific merchant
Pros and Cons of Gift cards: It has already been established that gift cards, a form of payment that can be used to make purchases at retail stores, gas stations, restaurants, other locations and online is gradually substituting cash and other payment methods.But this usefulness is not limited to mere substitution. The following are more of its uses:
Pros and Cons of Gift Cards
Gift cards can often be an appropriate present for the holidays or any other special day. Be it to celebrate holidays, birthdays, graduations or promotions.
Gift cards could be preferable if you have no idea what to procure for someone on your gift list, as they let the recipient to use it however whenever they want.
• Financial Control
Because of it seemingly advantages, Gift cards can be used to limit excessive spending as well as bank overdrafts and charges.
Because they can be used both electronically and physically, Gift cards are very easy to use as they provide convenience during transactions.
Pros and Cons of Gift cards
Gift cards can be converted to other currencies such as Dollars or Naira. Trading platforms such as Cardvest offers fast and reliable gift card trading with the best rate in Nigeria.
Gift cards are so flexible that they can be used physically anywhere and even conveniently online.
Just like every other things, Gift cards also have some downsides. Here are some:
Some prepaid gift cards charge a fee when you purchase them. You may also be required to pay a separate fee to reload a gift card if and when you wish to reuse it. But when you fail to use your card, You could be charged for inactivity.
• Funds Expiry
After purchases are made with a gift card, there may be a small amount of money left, which if not used, whether due to forgetfulness or inactivity, ends up as money wasted.
Some Gift cards, especially Closed-loop cards limit usability power as they can only be used at specific places. These types of giftcards when purchased can only be used to make purchases at the retailer issuing the card.
Gift cards expire after few years. But there is a law that prevents gift cards from expiring for up to five years after their activation date. Remember that failing to use a gift card could trigger an inactivity fee.
Some Gift cards just like the issuing retailers are limited to use only in some locations and using them may require some obligations. Obligations of having to actually go directly to these issuing retailing shops to be able to use them.
How to use Gift Cards Wisely
In order to attenuate potential problems, the following are few simple steps that gift card recipients can take:
• Go through the terms and conditions when you receive or buy a gift card so that you understand your rights.
• Register your card immediately. This gives you protection if the card is lost or stolen.
• Make use of the gift card as soon as possible. Unless the card has no hidden fees or expiration date. If it does, make it a priority to use it. Or You can redeem it into your currency of choice. Cardvest Nigeria offers sure gift card exchange.
• Report complications either to the company that issued the card, or to the Federal Trade Commission, whichever is applicable for the circumstance.