Why Should You Buy Gift Cards as Presents?

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Your choice getting limited, can expire at anytime even without you realizing – as costumers of particular retailer noticing out – can be worthless at the time a company having financial problem. Then, why are gift cards have particular interest on so many people’s special days shopping lists?

In United States, the first gift card using for payments model was brought by Blockbuster entertainment in 1994. At the time, the gift cards was to substitue gift certificates that were being frauded using modern color copies and color printers.

It was this excessive redemption of giftcards that released the inovation of alternative. The first giftcard dealings were prepared by what was then, Nabanco of Sun rising, California. Nabanco was the designer of the first system for the handling of giftcards using current transaction facilities.

Blockbuster was later followed by a cards by Neiman Marcus, and the Mobil gas cards which originally provided pre-paid cellphone value provided by MCI. Kmart was the next release of the Kmart Money Card which in the beginning years provided pre-paid cellphone time with AT&T. Later this function was decreased as it was not successful for both Kmart and Mobil.

The Kmart Magazines Pangilinan Money Card was the first succession for cash return when a consumer did not have invoice for a gift. This exercise of providing a cash cards in position of money for non-receipted profits is prevalent these days with most suppliers. From these beginning insights for each, several suppliers started to evolve a giftcard system to substitute their gift certification applications.

The reputation of gift cards in the US was reiterated by a recent NationalRetail Federation survey which found 60% of 8,899 participants expected to receive them by Christmas. Research agency TowerGroup forecast the market will be worth $200bn by 2021.

Gift card become more popular since then. Eventhough In 2009, the US governmentoutlawed cards which expire less than five years after purchase, Amazon has create inovation by providing gift cards without expiration.

..... the market continues to grow.

As for a comparison, people in UK paid a total of £4.4bn on gift card product in 2012, up from £2.7bn in 2003. Businesses account for about half of this - many utilize them as rewards, such as for staff achievement or long service.

The UK Gift Card and Voucher Association director general Andrew Johnson delivers the value of gift card sales has increased by more than 9% annually over five years, thanks largely to the card models reviving the industry.

"Whereas vouchers had to be kept in a safe, cards can be shown in-store because they've no value until they're charged up at the till," he added.

A gift symbolizes both you as a person and also what you think the person you're giving to is like. People don't want to be seen as giving incorrect thing; as misinterpreting someone's character.

Individuals rarely give cash because it can be seen as an insult; like you can't be worried. Even if a card isn't a excellent effort, it still seems like you've created an effort of some kind.

What Makes People Buy Gift Cards?

Jansson-Boyd states it's an inquiry of culture and history.

"The night before Greek weddings, people cast money onto the marital bed. But in the UK, we aren't comfortable presenting cash. When it's too apparent how much a gift is valued, it's seen as vulgar".

Dimitrios Tsivrikos, a lecturer in retail psychology at LondonMetropolitan University states the gift card habit is a sign of our digital times

“Shopping behaviour is changing with the way we communicate. Because we minimise the meaningful time we spend with each other, we don't know people as well as we used to or develop an understanding of their preferences. Instead of simply asking what somebody might like - with the associated awkwardness of not wanting to ask for something too expensive - people are researching their gifts by seeing what people "like" on social networking websites - and buying a card for the relevant store. This method of research has its own shortcomings, however - as someone's online persona reflects how they would like to be seen - rather than their true character”

Clare Rayner, retail consultant says many consumers feel a gift card will definitely be spent on a treat, whereas cash might be used to pay for the mundane.

"The giver wants to know their investment in a gift went on something desirable, but they've attempted to leave the choice of item up to the receiver." But she personally adds: "Personally I favour cash - it's the one universally accepted gift card."

The Common Pitfall of Gift Cards

The most common pitfall of gift cards purchasing is the expiration date. Many people accepting gift cards not use them until it gets expired. They just forget about it due to many reasons.

Responding this pitfall some providers have offered gift cards without expiration. Amazon is one of them. Though in small case users find amazon gift cards get expired, the costumer service would be a good source for solutions.

Why Should You Buy Gift Cards?

Presents are great, but not always practical. Cash seems a bit of a cop-out. Gift cards can be a good alternative and can express a lot of thought by virtue of the establishment they come from.
Cash probably just gets used to pay the hydro bill or a tank of gas.

But obviously, you have to chose the right card, from the right store, or the right person. Gifts seem more appropriate for people close to you.

But gift cards seem very acceptable for someone you would like to give to, but don't know really well. Better a gift card than something they will ever use. Interesting? Buy gift cards as yourpresents.


  1. I like buying gift cards from Kroger. They usually run promotions where you get 50 fuel points for every card you buy. 100 fuel points will get you 10 cents off a gallon, which is fine for me!

  2. Hi Wisedollar!
    Kroger is a great place for Earn fuel points by buying gift cards at Kroger and using them instead of cash at your favorite stores and online retailers. Thanks for sharing your experience