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A gift card is a prepaid, stored-value payment card—either physical or digital—loaded with a specific amount of money, used to purchase goods or services at particular retailers, restaurants, or online websites. They act as an alternative to cash for purchases, typically cannot be redeemed for cash, and are often given as presents.
Closed-Loop (Store-Specific): These cards are restricted to a single retailer or a specific group of stores (e.g., a Starbucks or Nike card).
Open-Loop (Network Cards): These are branded by networks like Visa, Mastercard, or American Express and can be used at any retailer that accepts them.
Digital vs. Physical: Gift cards can be plastic cards (physical) or digital codes/vouchers (e-gift cards) used for online shopping.
Non-Reloadable: Most traditional gift cards cannot have more money added to them once the balance is used.
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