GIFT CARD

A gift card is a prepaid debit card that contains a

the specific amount of money available for use for a variety of purchases.

 

How a Gift Card Works

Gift cards are a form of prepaid debit cards loaded with funds for future use. There are generally two types of gift cards: open loop and closed loop cards. Both types can typically be used online and in person.

 

Many gift cards will have a minimum and maximum initial

loading amount. A typical minimum is $10, and a standard maximum is $500. In

some situations, they can be used to pay for a portion of purchase with cash, debit, or credit applied to balance the expense. As a precaution to mitigate the risk of losses, many gift cards can also be registered online—a procedure that allows the remaining balance to be tracked and frozen if a card is lost. In this way, some gift cards are safer than cash.

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