What are gift cards?

Gift cards are prepaid stored-value money cards issued by retailers or banks. They function as an alternative to cash for purchases within specific stores or related businesses. Gift cards typically resemble credit cards or feature designs related to the issuing merchant.

What types of gift cards exist?

There are two main categories:

• Closed-loop gift cards: Redeemable only at specific retailers or store chains (e.g., Amazon, Starbucks)
• Open-loop gift cards: Feature payment network logos (Visa®, Mastercard®, American Express®) and work anywhere those networks are accepted

Additionally, cards can be physical (plastic) or digital (e-gift cards delivered electronically).

Where can I purchase gift cards?

Gift cards are available from multiple sources:

• Directly from retailers (in-store or online)
• Grocery stores, pharmacies, and convenience stores
• Bank websites and mobile banking applications
• Online gift card marketplaces (use caution)
• Wholesale clubs and membership stores

For security, we recommend purchasing from official retailers or established businesses with secure payment systems.

Do gift cards expire?

Expiration depends on the card type and issuer policy:

• In the United States, federal law prohibits gift cards from expiring before five years from activation
• Some retail gift cards never expire
• Bank-issued gift cards typically have expiration dates (usually 5+ years)
• Some cards may charge inactivity fees after extended periods of non-use

Always check your specific gift card's terms and conditions for expiration details.

How do I use a gift card?

Usage varies by card type:

• Physical cards: Present at checkout in-store, or enter card number and security code online
• Digital gift cards: Use the code or number provided via email or app during online checkout
• Magnetic strip cards: Swipe at payment terminal
• Chip cards: Insert into chip reader

Many retailers also support adding gift cards to mobile wallet apps for contactless payment.

How can I check my gift card balance?

Several methods are available:

• Visit the retailer's website and find the "Gift Card Balance" section
• Call the customer service number on the back of the card
• Check in-store at a register or customer service desk
• Use the retailer's mobile app if available
• For bank-issued cards, visit the website listed on the card

Keep your receipts as they often display remaining balance after purchases.

How can I protect my gift card?

Follow these protection strategies:

• Keep purchase receipts as proof
• Register cards when registration is available
• Never share card numbers, PINs, or security codes
• Be cautious of emails requesting gift card information
• Use cards promptly to reduce loss or theft risk
• Photograph both sides of cards as backup

Treat gift cards like cash—store them securely and use them carefully.

What are common gift card scams?

Common fraud schemes include:

• Tampered cards: Scammers record card information in stores and wait for activation
• Payment scams: Fraudsters demand gift cards as payment for fake services
• Fake giveaways: Scam emails or social media posts offering free cards to steal information
• Verification scams: Calls claiming to verify information that actually steal balances
• Resale scams: Selling used or counterfeit cards on secondary markets

Remember: Legitimate businesses and government agencies never require payment via gift cards.

What is GiftWave.org?

GiftWave.org is an educational website providing comprehensive information about gift cards. We offer guides, safety tips, usage tutorials, and best practices to help consumers make informed decisions. Our content is created by consumer education specialists and financial literacy experts.

Does GiftWave.org sell gift cards?

No. GiftWave.org is strictly an educational resource. We do not sell gift cards, process payments, or facilitate any gift card transactions. We provide information only to help consumers make informed decisions.