Types of Gift Cards

Gift Cards offer a world of flexibility for gift giving. They are an excellent choice for corporate gift giving, teacher gifts, and for grandchildren and long-distance relatives where shipping costs can be prohibitive.

I've met few children, parents, or teenagers who disliked receiving gift cards, because they place the holiday gift experience in the hands of the recipient so that person can buy something they really wanted. No more standing in line to return wrong-sized clothing, unwanted kitsch and clutter, or gifts that are inappropriate to a child's age.

Gift cards are easy to buy and mail, so you can get your gift shopping done early!

Prepaid Visa Gift Cards are one type of holiday gift card. They can be purchased online, at your local grocery store, and sometimes even at the gas station or pharmacy. At the time of purchase, the giver loads a predetermined amount of money onto the card. These cards are one-time-use cards so they are not reloadable. They are as flexible as cash, and can be used anywhere a Visa card is accepted. These cards are more flexible than gift cards issued by stores because they can be used just about anywhere.

Using the Visa Gift Card requires that you press the credit key at the time of purchase. This is because Visa Gift Cards usually do not require a personal identification number, and debit transactions require a PIN number be entered at the time of sale. However, the cards are gift cards and not credit cards, so you cannot borrow money against the card. If there is no money left on the card your transaction will be declined.

Visa Gift Cards carry some of the benefit of Visa Credit Cards. Although the cards aren't reloadable, you should encourage the gift recipient to keep their card until the return period on their purchased items has expired so that if a return is necessary, it can be credited back onto the card they used to buy their gift item. For security reasons, it is recommended that once a Visa Gift Card has been used up, the card should be destroyed using a paper shredder or a pair of scissors.

Pros

This card has all of the general advantages of a store gift card but has much greater flexibility. It can be used anywhere a credit card can be used.

These cards are great for large gift amounts because it can be used many times until the balance on the card runs out.

When the balance on the card is at zero, any attempted purchase will be declined.

Cons

Use Restrictions: Many Visa Gift Cards are not usable outside of the United States. Reloadable Visa Gift Cards that are only usable in the U.S. are labeled "for Domestic Use." Prepaid Visa cards often require an activation fee, adding about $5.00 to the price of the card.

If you do not keep your own record of your purchases, you will have to call a phone number or check online for your account balance.

Variety retailers, also known as big box stores have been offering reloadable gift cards for years. Target and WalMart both offer a wide variety of gift cards that can be loaded with any amount of money. These gift cards can only be used at the retail store where you purchased the gift card, or at their online shopping site.

Gift card at these stores are a good choice for family gift purchases, especially if you are sending one gift card to a parent and then asking them to shop for kids "from grandma." This is a win-win for parents who may need a little extra help covering their needs, especially if you are not able to closely monitor the needs of growing grandchildren.

Target and WalMart both offer attractive gift cards designed for special occasions such as Christmas, birthdays, and the arrival of a new baby.

Wal-Mart gift cards are sometimes compatible with the warehouse retailer, Sam's Club. Check for cross-compatibility between the cards offered at these two retailers.

Pros

Wal Mart and Target Gift Cards are reloadable and can be used in conjunction with cash or a debit card to cover a high-cost purchase. They offer the ultimate in flexibility for general purchases of housewares, toys, food, and seasonal items. Retailers like Wal-Mart and Target have a diverse range of products and services, including groceries! A recipient of one of these gift cards should be able to find a gift they want at one of these stores.

The recipients of these gift cards can check their balance easily by going to the register at the retailer.

Cons

It's hard to find a con for these types of gift cards because they are very flexible. However, make sure that your recipient has access to a nearby store.

Book Store Gift Cards

Physical Book stores such Barnes and Noble, and Books A Million offer gift cards that you can purchase at the store in the form of a plastic gift card, or online. These cards are usually available in predetermined amounts, and can also be purchased at kiosks in grocery stores. The advantage of these types of gift cards, as with any specialty retailer is that you can buy them even if you don't have one of these stores nearby.

These stores offer music, physical books and calendars, journals and stationary, and media downloads. Some book stores have a more diverse product offering than others, but most anyone can find a personal and enjoyable gift to suit their interests.

A gift card to a book store is a great gift to give a preteen because part of the gift is the enjoyable experience of going to the store to browse the titles. If your recipient is homebound and has access to a computer, most of these stores have online sites and will accept gift cards as a form of payment.

Pros

Book store gift cards offer a variety of media options for gift recipients. Book store cards are an excellent gift choice for teachers who receive more than their share of coffee mugs! If a teacher doesn't want to purchase media for themselves or their families, they can always use the card to purchase materials for their classroom.

Cons

Make sure that the gift recipient has access to regional book stores, such as Books a Million, or that they have access to a computer so they can shop at the store's online site.

Many franchised restaurants offer gift cards. These vary from fast food chains like McDonalds, who has been offering gift cards and certificates for many years, and Sonic Drive In, which has a tater-tot dressed as an elf on its gift cards. Fast food restaurants offer gift cards in small denominations, such as five and ten dollars.

A $10 gift card to Starbucks or a local cofffee shop makes a great gift for a coworker. They are discreet and make a good alternative to the traditional corporate gift basket, because coworkers can enjoy this gift with their significant other. Gift cards for eat-in restaurants such as the Olive Garden, Carrabbas, and Ruby Tuesdays are usually sold in increments of $25.

More and more restaurants are selling gift cards through other retailers, but you can buy them online as well. A restaurant gift card makes a great gift experience for the recipient. If you participate in a family gift exchange, this option can help to create a pleasant family memory.

Many people enjoy going to a nice restaurant, such a Cracker Barrell, for breakfast.

Pros

A restaurant gift card can be a great gift for a teen or someone who habitually stops at a favorite fast food restaurant for breakfast or lunch. Restaurant gift cards are also a great idea for Bunco gifts. they are sold in small increments through larger amounts, depending on the restaurant.

Cons

All of the money on a restaurant gift card needs to be spent at that restaurant. A nice sit-down restaurant meal for four people will cost at least $50. If this is not in your budget, consider some of the other gift card options instead. You might consider a Cracker Barrel card as this restaurant also gift shops where your gift recipient can spend the remainder of their gift amount.

Do you know someone who is giving a member of their family an IPod or digital music player? A music download card makes a great supplemental gift. Music download cards such as the ITunes gift card are sold at grocery stores, WalMart, Target, and at other retailers who sell gift cards. ITunes cards give the recipient credit at the ITunes download store, where the recipient can download songs, usually for just under a dollar per song.

ITunes cards are an inexpensive alternative to more expensive video games, and give the gift recipient the choice of sampling many songs by their favorite musicians without purchasing many albums. ITunes gift cards are sold in multi-packs for giving as a stocking stuffer.

Video game subscription cards are sometimes offered in the media departments of various retailers. Online games such as Club Penguin and Pixie Hollow, both Disney online game sites, gives children access to members-only areas of online games. You can buy a one-month membership for as little as $6.95, or you can purchase a 6 month membership for about $30. Memberships to online games are an excellent choice for kids who don't have a Wii or other video gaming system, but who like to play video games. They are less expensive that video game systems.