There are different types of gift cards that people use for different purposes today, and among the different types is the SecureSpend, which is a non-reloadable prepaid gift card. If you’re not familiar with what gift cards are, this article is for you. Find out here the different types of digital gift cards that you should know and other amazing facts about these gift cards. We’ll also highlight the pros and cons of different gift cards.

One of the reasons why people use gift cards is mainly for the convenience that they offer. However, a key thing to note is that they usually have hidden fees, and in some cases, this can cause funds to waste. Despite that, retailers in different parts of the world still use gift cards for shopping or even as gifts to people, both online and offline.

Today, there are two main types of gift cards, which are digital type and the physical gift cards. These two types are different in many ways, and they also offer different benefits. If you’re considering getting a gift card, it’s vital that you understand how they work and also be able to compare the different options available.

How Gift Cards Work

The first thing to note about gift cards is that it’s a payment means that people use in making purchases in gas stations, retail stores, restaurants, and many other locations. Basically, for the cards to work, you’ll need to load money onto them to allow the gift card recipient to be able to make payments at any of the aforementioned locations.

In addition to the physical and digital gift cards, it’s worth noting that they can also be closed-loop or open-loop. You can only use a closed-loop card with specific merchants. For example, buying a gift card from Amazon implies that you’ll only be able to use the card at specific retail outlets. On the other hand, an open-loop card, as the name suggests, can be used anywhere, and they are no restrictions whatsoever.

Another key thing to note is that there may be charges on some prepaid gift cards, and you can only purchase these cards after paying these charges. There’s also the possibility to pay an additional fee whenever you load money onto the gift card.

Physical vs. Digital Gift Cards

As we have mentioned above, gift cards can e physical, like a plastic cards, and they can also be digital. With the digital option, there are no physical cards available, rather, you only have the unique gift code number that you can use whenever you want to redeem the card at any online retailer. The physical cards remain the most popular option that people widely use in different parts of the world today. However, with the constant development of innovations, this is likely to change in the nearest future.

There are many companies that allow people to purchase the physical cards on their online sites. These companies also allow them to purchase the digital cards. This is common with major restaurants and other similar businesses. The reason why these cards are growing in popularity is that they are very convenient, and customers can easily use them to make payments for items they purchase.

Another amazing fact about these digital cards is that they can also be stored in mobile wallets. Examples of some of the most widely used mobile wallets are PayPal’s Venmo, Apple Pay, or Google Pay. You can always select the digital card from the mobile wallet whenever you are ready to make a payment. For this, you only need to make the digital gift card your preferred payment option.

Pros of Gift Cards

Here are the pros of gift cards:

• Gift cards are a perfect substitute for conventional payment options, especially when paying by cash or with a credit card may not be convenient.
• They are perfect items for gifts to friends and loved ones
• Gift cards make it easy for people who want to control their spending.
• They are the most convenient payment options.

Cons of Gift Cards

Here are the cons of gift cards:

• There are limited transaction possibilities with closed-loop cards
• In many cases, you may be charged extra fees to reload or purchase using the gift card
• In cases where your gift card gets missing or stolen, you might face serious challenges trying to get it back or keep the gift card number.
• After the completion of a transaction with the gift card, you might be left with a little amount of money in the gift card, and you might not be able to use this money. In some cases, it may be due to inertia, or forgetfulness, thereby causing the money to waste.