Gift cards suitable for transactions
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Not all gift cards are suitable for general transactions—some are limited to specific stores or platforms. Here’s a breakdown of gift cards that can be used for transactions:
- Open-Loop Gift Cards
Description: Linked to major card networks like Visa, Mastercard, or American Express.
Features: Can be used anywhere the network is accepted, including online and in-store.
Use: Suitable for general purchases, paying bills, or transferring value.
- Closed-Loop Gift Cards
Description: Issued by a specific retailer, restaurant, or service (e.g., Amazon, Walmart, Starbucks).
Features: Can only be used at the issuing store or platform.
Use: Limited to purchases within the brand; not suitable for general transactions outside the brand.
- Digital/Virtual Gift Cards
Description: Online-only versions of open-loop or closed-loop cards.
Features: Can be used instantly online, often with a code.
Use: Online shopping, subscriptions, and sometimes peer-to-peer transactions if open-loop.
- Mobile Wallet Gift Cards
Description: Stored in apps like Apple Wallet, Google Wallet, or PayPal.
Features: Can be used for online and in-store payments depending on acceptance.
Use: General transactions where the wallet is supported.
Summary:Best for general transactions: Open-loop gift cards (Visa/Mastercard/Amex) and some digital/mobile wallet cards.
Limited to specific stores: Closed-loop gift cards.
