How do gift cards work: A comprehensive guide

Gift cards: perfect presents for all

Gift cards have become an incredibly popular choice for gift-givers and recipients alike. They offer flexibility and convenience, allowing people to choose their own items or experiences. But have you ever wondered how gift cards work behind the scenes?

In this comprehensive guide, MBL Solutions will explore the ins and outs of gift cards, from their types and benefits to their activation and redemption processes.

Types of Gift Cards

Before we delve into how gift cards work, let’s briefly discuss the different types available:

1. Closed-loop Gift Cards: These are typically retailer-specific gift cards, such as those from department stores, restaurants, or online retailers. They can only be used at the issuing retailer..

2. Open-loop Gift Cards: These are more versatile as they are often branded with major credit card logos like Visa, MasterCard, or American Express. They can be used at various merchants, both online and in-store. There is usually a large issuance fee that has to be paid in addition to the money being loaded.

3. Digital Gift Cards: Also known as e-gift cards, these are sent electronically, usually via email, and can be redeemed in-store, online and or through mobile apps.

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Benefits of Gift Cards

Now that we’ve covered the basic workings of gift cards, let’s explore why they are so popular:

1. Flexibility: Gift cards offer recipients the freedom to choose what they want, ensuring they receive a gift they truly appreciate.

2. Convenience: Both gift-givers and recipients find gift cards convenient, as they eliminate the stress of selecting the perfect gift and reduce the chances of receiving something unwanted.

3. No Size or Style Worries: With gift cards, you don‘t need to worry about sizes, colours, or personal preferences. It’s a one-size-fits-all solution.

4. Security: Unlike cash, if a gift card is lost or stolen, it can usually be replaced as long as the card’s information is recorded or registered. At MBL, we offer full support on lost or stolen gift cards, with a small fee deducted from the cards balance.

5. Budget Control: Gift cards allow gift-givers to control their spending while still providing a thoughtful present.

6. Easy to Manage: MBL Solutions can manage your entire gift card programme, taking away the stress from your day-to-day and allowing you to focus on your business.

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Gift-giving, revolutionised

Gift cards have revolutionised gift-giving by offering flexibility, convenience, and a personalised touch. Understanding how gift cards work helps both gift-givers and recipients make the most of this popular gifting option. Whether you’re celebrating a special occasion or simply showing appreciation, gift cards remain a versatile and appreciated choice in the world of gift-giving.