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A gift card, also known as a gift certificate in the United States or a gift coupon or gift token in the United Kingdom, is a prepaid stored-value money card provided by a retailer or bank to be used as an alternative to cash for transactions within a specific store or associated businesses. Employers and companies can also distribute gift cards as incentives or gifts. They are often referred to as cash cards because they are issued by retailers and advertisers as part of a marketing campaign to entice the recipient to come in or return to the store. For example, Amazon, Walmart, Starbucks gift cards.
Gift cards are usually only redeemable for transactions at the relevant retail store, cannot be cashed out, and may be subject to an expiration date or fees in some cases. Generic gift cards, such as those offered by American Express, MasterCard, and Visa, are commonly used for cashback marketing campaigns because they do not have to be redeemed at specific stores. A feature of these cards is that they are generally anonymous and are disposed of when the stored value on a card is exhausted. From the buyer's viewpoint, a gift card is a gift that is offered in lieu of an item that the recipient may or may not need when offering cash as a present is considered socially unacceptable. The recipient of a gift card can use it at their discretion within the restrictions set by the issue.
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