What is a Gift Card?

Gift cards are fast becoming the most widely accepted method of providing cash as a monetary gift, either to be used at a certain business location or online. This gift is acceptable to both the purchaser and recipient, but there can also be fees, limitations, or expiration dates that can potentially reduce the value of a card.

Billions of dollars in unused balances go unclaimed each year, according to Bankrate. "Survey- 43% of Americans Have at Least One Unused Gift Card."

How do gift cards work?

Gift cards are available in two types, plastic and electronic vouchers, and can be redeemed at the retailer that issued the card. They may not be resold like normal credit cards since they are preloaded with a dollar amount, which means they must be used for purchasing goods or services from that particular retailer. You can use them to pay for items without incurring any transaction fees as long as they are redeemed at the same store that issued the card.