A gift card, gift certificate, token, or voucher is a small card that can be exchanged for goods and services from a particular business, retail store, or merchant. Let’s learn about ‘Reloadable Gift Cards’.
Reloadable Gift Cards
It is a prepaid value money card and is often issued by a bank or retailer and can be used to make purchases at gas stations, restaurants, and retail stores and carry out other transactions.
Gift cards are usually issued by a particular retailer or merchant. They are mainly for purchases and can be activated by calling the merchant or using their URL to input the activation number.
What Is A Reloadable Gift Card?
A reloadable gift card is a card that you can always top up from time to time. Reloadable prepaid cards are not gift cards.
You can reload a gift card in-store. Walmart allows you to load gift cards either in-store or online and applies a 10% service fee if you use their gift card at Sam’s club and you are not a member
There is usually no limit to the amount you can load on a gift card and stores like Footlocker allows you to load an amount up to $35000 on a gift card.
Fees are usually not charged on a reloadable gift card and they do not have a purchase fee. However, you must note that bank-issued gift cards like Visa, MasterCard, and American Express usually charge a fee to cover third-party stores.
The Best Gift Cards Include:
- Brink prepaid MasterCard
- Pay Pal prepaid master card
- Net spend visa prepaid card
- Bluebird American Express prepaid debit card
- Serve American Express prepaid debit account
- The mango prepaid MasterCard
- Greenlight debit card for kids
1. Brinks
Allows you to load between $5-$100. You can reload your brinks gift card through direct deposit, bank transfer, PayPal transfer, tax refund, or mobile check load. Cash can be withdrawn from your gift card r-the-counter at over 100,000 MasterCard bank branches. This gift card is usually delivered by email or you can print it at home.
2. MasterCard Prepaid Gift Cards
Are globally accepted for shipping, dining, and entertainment purposes.
3. Bluebird American Express
charges no fees when you purchase the gift card online. However, they charge an activation fee of $5 when you purchase the card at Walmart. You can load up to $1000 daily and $5000 monthly. You can pay bills at ATMs. There is no fee for reloading in Walmart but other retailers charge $3.95.
4. Serve American Express Prepaid Gift Card
Is always ready to use immediately after purchase and offers free cash reload. They have a four-digit security code usually located in front of the card.
Other popular stores offering reloadable gift cards are Amazon, Walmart, Target, Verizon, Sketchers, and AT& T to mention a few.
There are some pros and cons of a reloadable gift card as outlined below.
Advantages
- Convenient to use rather than carrying cash;
- Can be used to gift someone going on holiday or special occasion;
- It can control spending;
- Preferable if you have no idea of what/ gift to buy for someone;
Disadvantages
- After purchase and the amount left is not used up it goes to waste when the gift card expires;
- You may pay fees to reload or purchase fees;
- Closed-loop limits your purchasing ability as you have no retailer options;
- You may be charged inactivity fees if you do not use your gift card;
- If you lose the gift card and have not registered the number, the funds may be lost.
Other Types Of Gift Cards
1. Open-Loop Gift Cards
is a general purpose gift card and it can be used anywhere that brand of card is accepted. Visa gift cards and American gift cards are open loop cards.
2. Closed-Loop Gift Card
these cards only work at one store which is the issuing retailer. Amazon and Starbucks are both closed loop cards.
Amazon’s gift card is the most popular gift card and the recipient can redeem and reload the gift on amazon.com with your credit, debit, or pre-paid card. One unique feature of the Amazon gift card is that they never expire. The recipient can redeem the gift card at Amazon.com. The value of the card can be between $5 to $500 in convenience, drug, and grocery stores
Summary
Reloadable gift cards have many advantages from being a choice given to people when you run out of ideas on what gift items to purchase for them, as a sign of appreciation, or to be used to limit your spending. It is also a safe way of carrying cash as it reduces your loss.
FAQ
- Do gift cards expire?
A gift card can not expire in less than 5years after purchase
- Can you get cash from your gift card?
Absolutely. You can do so at a gift card kiosk usually located in a grocery store if the retailer of the gift card allows that.
- Can you reload money on a gift card?
Yes, most retailers allow you to reload an existing gift card in-store.
- Can I reload a gift card with a credit card?
This is usually done in store.
