The Benefits and Challenges of Gift Card Types
The debate between physical and digital gift cards heats up as we approach the holiday season. Each type offers distinct benefits and challenges, and understanding these can help consumers and businesses make better gifting decisions.
As your consumer guide to gift cards, I've literally tried and tested hundreds of them—from the classic plastic gift cards with embossed numbers to the trendy "multi-store" gift cards usable at various stores and restaurants, to e-gift cards that operate uniquely. Both form factors have their benefits, which we'll explore in this article.
As we delve into the benefits and challenges of physical and digital gift cards, you might also be curious about where to find these gift cards. For detailed insights on the best places to purchase them, check out my comprehensive guide on the best places to buy gift cards in 2024.
Now, let’s dive into the pros and cons of each type of gift card, and I’ll explain why each type might be the right choice, depending on your gifting needs.
Physical Gift Cards: A Timeless Choice
A recent study by TSG and Bank of America highlights a compelling 2024 trend: physical gift cards may be especially popular this year.
Why? I believe the answer lies in the tactile joy of gift-giving. There's a unique satisfaction in handing over a beautifully wrapped present, something that digital options can't replicate. Whether it's a one-on-one gift-giving moment or an occasion surrounded by a room full of gift exchangers, there's increased satisfaction in passing a gift hand-to-hand and heart-to-heart. This resonates with people of all ages and across various gift-giving occasions.
I know a mid-size business owner who routinely rewards employees with gift cards—impromptu to individuals and planned for entire teams. He insists on giving physical gift cards because he wants to congratulate the recipient in person, shake their hand, and say a heartfelt "job well done." During the pandemic, when face-to-face interactions were limited, he gave digital gift cards and later shared that they didn't feel the same.
Here's a closer look at the benefits, challenges, and some handy tips for gifting physical gift cards:
Physical Gift Card Benefits
1. Tangible Present
In a world where so much is virtual, having something tangible to give and unwrap adds excitement and anticipation to the gift exchange. Delivering a ribbon-wrapped box, bag, or envelope shows you spent time and effort, not just money, creating a meaningful gift.
2. Emotional Connection
Gifting is more than just a transaction; it's an exchange of emotions. According to Teak & Twine, giving and receiving gifts triggers the release of feel-good chemicals in our brains. Moreover, they note that people value things they can see and touch almost 30% more than things they can only see. This makes physical gift cards a more emotionally impactful choice.
3. Predictable User Experience
Physical gift cards offer a familiar and straightforward user experience, similar to debit or credit cards. This familiarity eliminates any potential confusion or learning curve associated with their use. Recipients likely already know how to check balances and use the funds just as they would with traditional bank cards, making them accessible and user-friendly for all ages and demographics.
Physical Gift Card Challenges
1. Logistics
You might need to make a special trip to the store or restaurant to pick up a physical gift card. If you order online, you'll need to do it well ahead of time to ensure it arrives when needed. And if you're sending the gift card to someone, you'll have to make a trip to the post office, pay for shipping, and add tracking to guarantee your gift actually gets there.
2. Easy to Lose or Forget
Physical gift cards can easily get lost in the shuffle of daily life—like being accidentally tossed out with the holiday wrapping or forgotten in a card. Just like a misplaced dollar bill, they're usually gone for good once they're gone. And let's not forget, gift cards aren't always convenient to carry around; many end up left at home because people don't want to bulk up their wallets.
3. Subject to Fraud
Physical gift cards, often displayed unattended in stores, are prime targets for tampering. Criminals may manipulate cards on display, scratching off panels to steal the activation codes before they're purchased. When the cards are sold, the thieves quickly use up the value—leaving you or the recipient with a zero-balance gift card and the challenge of working with customer service to prove you weren't the one who used the card and are owed a replacement.
3 Tips for Gifting Physical Gift Cards
Physical gift cards on display at a grocery store.
1. Pick the Right Gift Card
Follow my "Whole Gift Rule" when choosing a gift card. This means selecting a card that fits your budget, aligns with the recipient’s interests, and allows them to enjoy the gift without additional out-of-pocket expenses.
2. Pair with Complementary Gifts
Enhance the main gift by pairing the gift card with something related to its use. For example, tuck a bookstore gift card inside your favorite novel or combine a pizza gift card with a fun pizza cutter. This little "extra" adds a personal touch and makes the gift feel more thoughtful and complete.
3. Safety Measures
Always include the original receipt and the gift card’s packaging when giving it. If the card gets lost or stolen, some issuers can replace the card if there is proof of purchase.
Where to Buy Physical Gift Cards
After exploring the benefits and challenges of physical gift cards, knowing where to purchase them is crucial. In addition to my complete list of the best places to buy gift cards in 2024, Giftly is at the top of my list for offering a unique and customizable way to send physical gift cards.
As a certified provider, Giftly ensures the ease of use, security, and customer support I believe consumers deserve. You can learn more about Giftly via their certification results or visit their website directly at Giftly.com.
I also think Ulta (another certified gift card) provides a top-notch physical gift card experience, complete with free gift card holders and a plethora of goodies you can buy to go with the gift card if you want.
(I am currently certifying more gift card companies, so stay tuned for updates to this section!)
While physical gift cards offer the undeniable charm of tangible giving, digital gift cards bring a modern convenience that caters to our increasingly online lifestyles. As we pivot to explore these digital alternatives, let’s examine how e-gift cards can meet the demands of instant, efficient, and eco-friendly gift-giving.
Digital Gift Cards: The Future of Convenience
Buying a Digital GIFTLY Gift card on a mobile phone
Despite the charm of physical cards, the digital gift card market is poised for explosive growth, expected to soar to $1.5 trillion by 2032. The appeal? Unmatched convenience. However, this convenience varies widely.
While testing hundreds of digital gift cards, I've encountered everything from seamless integration into digital wallets to confusing activation processes. This inconsistency can be frustrating for potential users. Still, I suspect (hope) we will eventually land on a standard egift card experience that ensures digital gift cards are as easy and delightful to give and receive as their physical counterparts.
Here's a closer look at the benefits, challenges, and some handy tips for gifting digital gift cards:
Digital Gift Card Benefits
1. Free and Instant Delivery
One of the standout advantages of digital gift cards is that you can send them instantly or schedule a future delivery without shipping costs or trips to the post office. Perfect for last-minute gifts, e-gift cards can be emailed directly to the recipient’s inbox or sent via text message, ensuring you never miss an opportunity to celebrate.
2. Customization Choices
Digital gift cards offer a range of customization options that allow you to personalize the gifting experience. From choosing thematic designs to adding personal messages or videos, these cards can be tailored to reflect the recipient’s personality and the occasion, making your gift both unique and memorable.
3. Always Accessible
Forget about leaving your gift card at home. Digital gift cards are stored on your phone (e.g., in a mobile wallet, dedicated app, email, photos, etc.), making them always accessible wherever you go. This convenience means no more missed opportunities to use your gift cards just because you left them at home.
Digital Gift Card Challenges
1. Less Personal Touch
The absence of physically handing over a gift can sometimes diminish the emotional impact of the gesture. However, this concern may not resonate as much with younger generations. At a recent family gift exchange, for instance, my nieces and nephews effortlessly exchanged digital gifts via their phones while we old-timers presented gifts adorned with bows.
2. Technical Issues
Users might face technical challenges with digital gift cards, such gift cards ending up in spam or junk email folders, or recipients hesitating to click links due to fears of scams. Additionally, some e-gift cards require downloading specific apps to access or use them, which can be another hurdle. These obstacles can frustrate recipients and complicate what should be a straightforward process.
3. Limited Usability in Certain Contexts
While most large retailers readily accept digital gift cards, smaller shops or older establishments may lack the necessary technology to process or offer egift cards. Additionally, practical issues like weak Wi-Fi connections or low batteries can impede the digital gift card usage at critical moments. For instance, I once stood uncomfortably at a cash register unable to retrieve a digital gift card due to a slow in-store connection.
3 Tips for Gifting Digital Gift Cards
Buying digital gift cards online at Gift Card Granny.
1. Personalize Your Message
Getting creative with digital gift cards can be fun! Take the opportunity to craft a heartfelt message or select a custom card design that mirrors the recipient’s interests or the special occasion--or record your own video and upload a throwback photo for a laugh. These extra touches make the gift more personal and shows the level of thoughtfulness you put into the digital experience. Platforms like Giftly offer fantastic customizable options that make choosing and sending e-gift cards interactive and enjoyable.
2. Verify Email Details
Before sending a digital gift card, ensure you have the recipient's correct email address or phone number to avoid delivery issues. It’s also prudent to notify the recipient that a gift card is coming so they can watch their inbox, including the spam folder. While this approach can diminish the surprise factor slightly, it helps guarantee that the gift doesn’t go unnoticed or unclaimed due to email filters or misunderstandings.
3. Save Your e-Receipt
You'll typically receive an email or digital receipt when you purchase a digital gift card. Save this receipt until you confirm the recipient has activated and redeemed the gift card. One advantage of digital over physical gift cards is that replacements are often easier to secure if you can demonstrate that the purchased card hasn't been used. Keeping track of your digital receipt provides security and simplifies the process of rectifying any issues that may arise.
Where to Buy Digital Gift Cards
When purchasing digital gift cards, opt for brands or marketplaces that offer robust features. Personalization is key, and I look for options that allow for customizable designs, variable dollar amounts, and the ability to upload personal photos or videos. An exceptional feature that enhances the gifting experience is a "preview" option, which lets you see exactly what the recipient will receive.
One standout example is the American Eagle e-gift card experience, which includes all these features plus a preview option—earning a big #Bravo from me!
Similarly, Giftly's digital gift cards—part of my certified offerings—provide an outstanding experience. They go beyond basic customization by prompting recipients to send a digital thank you note as soon as they open their virtual gift. This not only adds a sentimental touch but also reassures the giver that the gift was received.
Unlike typical branded gift cards, Giftly allows recipients to transfer the gift card's value to their account in various ways. This flexibility makes it suitable for most occasions. However, it's important to note that while Giftly's cards can be delivered on time, there might be a slight delay before the funds are usable. This is a crucial detail for givers to keep in mind to ensure timely gifting.
Wrapping it Up
As we navigate the nuances between physical and digital gift cards, it's clear that each type caters to different preferences and situations.
Physical gift cards continue to offer the irreplaceable joy of tangible giving, making them perfect for those who cherish traditional, hands-on experiences. On the other hand, digital gift cards provide unmatched convenience and flexibility, ideal for last-minute gifts and the eco-conscious.
The choice between physical and digital gift cards ultimately depends on knowing your recipient well and understanding what will make the gifting experience most meaningful for them. Whether you opt for the classic appeal of a physical card or the modern ease of a digital one, the act of giving remains a heartfelt gesture that strengthens connections and spreads joy.
As a gift-giver, embracing a mix of both forms of gift cards will allow you to appreciate the old and new traditions of gifting. Let's continue to celebrate the act of giving, no matter the medium, and make every gift card a thoughtful gift.
Happy gifting!
Shelley Hunter,
Consumer Guide to Gift Cards
P.S. What other questions do you have about egift cards? Share your questions through the Get Gift Card Help form or leave a comment below – I'd love to help.
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