What is a gift card？
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A gift card is a prepaid card that holds a certain amount of money (or credit) that can be used to purchase goods or services from a specific retailer or group of stores.
Key Points:Types of Gift Cards
Closed-loop gift cards: Can only be used at one retailer (e.g., Starbucks, Amazon, Walmart).
Open-loop gift cards: Issued by banks or payment networks (e.g., Visa, Mastercard, AmEx gift cards) and can be used almost anywhere those cards are accepted.
How It Works
The card has a fixed balance (e.g., $50).
You can spend it until the balance runs out.
Some cards can be reloaded with more funds, while others are single-use.
Uses
As a gift (so the recipient can choose what they want).
For personal spending control (like budgeting).
In online trading or resale markets (though this carries risk).
Risks
Scams (fake or empty cards).
Expiry dates or fees (some cards lose value over time).
Theft (if someone gets the code, they can drain it).
