Having a difficult time to decide a gift? Well, gift cards make it simple! From a choice of present for birthdays to anniversaries, digital cards are a good option to give to somebody as a gift. As the festive season is around the corner, the demand for digital cards will be seeing a soaring high.
What is a Digital Gift Card?
It is much like a debit card. However, it is limited to a preloaded amount. It can be used instead of actually making any payments. However, it comes with a period of expiry and must be used within the specified period.
Open loop v/s Close loop
Visa gift cards are the perfect example of open-loop gift cards. Unlike closed-loop cards, which are restricted in their reach and variety of brand options as they can only be redeemed at a specified issuing merchant, the open-loop has a broad base of reach, which includes potentially any brand which accepts the gift card of that mode of network and includes multiple merchants.
Such kinds of gift cards are generally issued by retail banks. Networks such as Visa, MasterCard, RuPay, et cetera have tie-up with banks who, on behalf of such networks, provide the opportunity to make purchases of the gift card. There are various options by which it can be bought online, being the most convenient way. However, if one does not want to buy online, then going to a bank branch or any issuing merchant is also possible.
Benefits of using Open-looped Gift Cards
These cards have access that is flexible and secure. It can be used by anyone and everyone because of its simplicity. Following are a few benefits of such cards:
Such cards can be reloadable if the prepaid amount gets drained. It is a quick and simple method, and it hardly takes a minute to transfer the money. Balances can be checked easily, and funds can be transferred with a click of a finger.
The biggest advantage of using such cards is its broad global reach. Unlike close-looped cards, such cards can be redeemed at multiple stores and merchants who accept payment from that kind of network base—big corporations who are known all across this world issue such cards which can be used anywhere.
Versatile and Customised options
Prepaid cards have a wide variety of options. The choice of a gift card can be tailored according to the needs of the customer. It can be loaded with any amount of money and be redeemable through a variety of options.
These cards are secure as they are protected with highly encrypted authentication methods. Ways such as generation of OTP, dual conformations, and password protected PIN make the fund in the card secure.
To promote these kinds of cards, many network providers provide incentives to use such cards in the form of discounts. Companies such as Visa and MasterCard have affiliations with various banks, and any payment made via these selected banks can lead to lucrative discounts.
Digital prepaid cards can be a well-sought option for a well-thought gift. To give it a personal touch and even more human value to it, the interests and likings of the recipient must be considered to make it a perfect gift option. Open-looped cards such as Visa Gift Cards practically cover a lot of brands, and the global presence of such corporations makes it easier to use them in the right way.