Gift Card

A gift card is a prepaid (stored-value) card typically purchased as a gift for others. It’s the modern equivalent of slipping a $50 bill into your cousin’s college graduation card. Gift cards function like debit cards, allowing the cardholder to make purchases up to the card's available balance.

Gift cards are issued by financial institutions but can be found at general retail outlets such as grocery or drug stores. Some are good only with specific merchants or merchant groups, while others are only good within a particular network.

While they’re convenient, versatile, and flexible for both gift givers and recipients, gift cards can also help drive customer engagement and loyalty for merchants.