In recent years, gift cards have gained massive popularity as a gifting alternative. Gift cards are prepaid cards that enable the receiver to make purchases from a certain store or collection of retailers. They are frequently given as gifts for birthdays, holidays, and other special events. Businesses can also use them as a marketing tool or as a method to reward employees. In this article, we’ll go over all there is to understand about gift cards and egift cards, including how they function, the various types that are available, how to buy and use them, the benefits of gift cards, potential limits, and why is Huuray the perfect gift card provider for your business. 

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Using gift cards was never easier

Gift cards operate by enabling the card’s receiver to purchase items up to the card’s value. Gift cards offer an easy and convenient way for businesses and corporations to reward and incentivize their employees and customers. By preloading the card with the desired value, the recipient can use it to purchase goods or services from the designated vendor. The gift card can be used by the receiver to make purchases from the merchant or collection of retailers listed on the card. This is a great way to show appreciation and make the recipient feel valued.

Depending on the merchant, gift cards can typically be redeemed both in-store and online. During purchasing, the recipient of a gift card can simply provide the actual card or give the store the card’s information; the merchant will then deduct the purchase price from the card’s balance. If their purchase is greater than the card balance, they can use another form of payment to complete the transaction. If you want to learn more about the gift card market in Europe, check out our article.

Boost your company performance with gift cards

As mentioned, gift cards are quite a strong marketing tool. They can be used to incentive and motivate your employees, boost your sales, or even empower your campaigns. Here you can read more about campaign rewards. They are an important part of most employee incentive programs as a popular reward tool.

Here are some more tips onto what can gift cards help you with:

Improved Sales

Gift cards help with boosting sales by persuading clients to buy something they wouldn’t have otherwise thought of. A gift card, for instance, can encourage a consumer to buy a product they are thinking about but aren’t sure whether it’s the appropriate fit for them, or they aren´t sure if they need it. Even more , if a buyer buys a gift card for another person in addition to their own purchase, that boosts the total value of their transaction.

Brand Exposure

By introducing new clients to a company’s goods or services, gift cards can assist companies in boosting brand awareness. When a customer buys a gift card for a friend or family member, they are effectively endorsing the company and introducing it to prospective clients who might never have previously known about the company.

You can read more about this topic in this LinkedIn article.

Customer Acquisition

By providing gift cards as a promotion or reward to draw in new clients, gift cards can be utilized as a customer acquisition technique. For instance, a company might provide new customers with a free gift card in exchange for joining their mailing list or making their initial purchase. This may encourage potential new clients to test the company’s goods or services and may result in future repeating business.

Customer Loyalty

You can offer gift cards to thank and keep your current customers. Businesses can encourage consumers to make more purchases and even raise their lifetime value to the company by using gift cards as a loyalty award or incentive. For instance, if a consumer makes a certain amount of purchases within a specified time frame, the firm can give them a gift card.

Versatility

Gift cards are really a versatile marketing tactic that can be customized to fulfill the unique requirements of a company. They can be personalized with particular branding or messaging and delivered in a number of different formats, like physical cards or digital gift cards. According to their own marketing objectives, companies might also choose to provide gift cards as a promotional, incentive, or reward tool.

Types of Gift Cards

Open-Loop Gift Card

Open-loop gift card generally display the logo of a well-known credit card, like Visa, Mastercard, or American Express. They give the receiver more freedom in how they use the card because they can be used anywhere that takes the corresponding credit card. Due to the additional fees they bear, open-loop gift cards are typically more expensive to buy than closed-loop gift cards.

Closed-Loop Gift Card

Gift cards with a closed-loop are the ones that can only be used at a certain retailer or set of retailers. While there are less fees involved with them, they are typically less expensive to buy than open-loop gift cards. Gift-givers who are aware of the recipient’s taste and interests, such as a certain apparel store or restaurant, frequently choose closed-loop gift cards.

Digital Gift Card

Digital gift cards, often also called egift cards, are becoming more and more popular, as they offer the big advantage of being able to be delivered instantly to the recipient via email or text message. Digital gift cards are normally available in both open-loop and closed-loop variants and can be used online or in-store, depending on the specific retailer. We will go back and cover more of digital gift cards further in the article.

Physical Gift Card

The classic gift card type is a physical card made of plastic that can be obtained in-person or sent through the mail. Just like with digital gift cards, the physical ones can be also either open-loop or closed-loop and can be used both in-store and online. Some people might prefer a physical gift card, especially if it has the purpose of a gift.

What do we offer at Huuray

At Huuray we are focused on making rewards accessible all over the world. We are always working on widening our catalogue, so your recipients can feel even more appreciated when using your rewards. In our portfolio, you can find a lot of different categories for gift cards, starting with Freedom of Choice, Charity/Donations, Bulk Gift Cards, Multi-Store Gift Cards, but also Country Gift Cards where you can find Sweden Gift Card, Norway Gift Card, USA Gift Card and many more to choose from.

Choose your way of purchasing gift cards

Redeem within seconds

Depending on the merchant, gift cards are redeemable online or in-store. The recipient of a gift card has two options for using it: either they must provide the actual card or give the store the card’s details. In some circumstances, the transaction may need to be completed with a PIN or security code.

Redeem with Huuray

With Huuray it is super easy to redeem your gift card. All you need to so is click the redeem button on the top of our page, insert the code from your gift card and then just shop freely.

Do not forget about the possibility of…

Expiration Dates

Does gift card expire? Well, certain gift cards may contain an expiration date, which indicates that the card will lose its usability after that time. The card or related documents should clearly specify the expiration date. The expiration date might occasionally be extended for a charge. As each card is different, each brands offer different expiration dates. That´s why you should always check with the brand you are planning to purchase your gift card from.

Fees

Certain gift cards could have added expenses, such activation or maintenance charges. When a gift card is first purchased, activation costs are normally charged. If the card balance is not used within a specified time frame, maintenance fees may also be assessed. Fees must be specified in detail on the cards or any supporting documents. However, those kind of fees are not so often applied to gift cards, but it is still good to be aware of them.

Limitations on Where They Can Be Redeemed

Gift card that is closed-loop can only be used at the merchant or a collection of retailers that are specified on the card. Gift card may sometimes not be accepted as payment at all stores, but open-loop gift cards are accepted anywhere that takes the appropriate credit card.

Lost or Stolen Gift Card

Based on the retailer’s policies, it might be possible to replace a lost or stolen gift card. In order to report the theft or loss and provide any relevant data, including the gift card number and past purchases, the recipient should get in touch with the shop as soon as possible. For the replacement of a stolen or lost gift card, certain stores may charge an individual fee.

However, the chances of your gift card getting lost or stolen are way lower with purchasing a digital gift card.

Take a step further, purchase a digital gift card

Digital gift cards, often referred to as egift cards, are electronic forms of traditional gift cards that are sent via email, text message, or mobile app. Similar to physical gift cards, they operate by giving the recipient a code or link to use to redeem the gift card online or in-person rather than an actual gift card made of plastic or paper.

Why are egift cards a good solution to consider?

E-gift cards are often safer to use than traditional gift cards. Everyone who has possession of an actual gift card is capable of using it. Yet in order to access an e-gift card, the receiver typically needs to input a code or click a link. The likelihood that the gift card will be misplaced, stolen, or used by a person other than the intended receiver is thereby reduced.

How does egift cards work?

• Purchase: Online retailers or gift card providers are the common sources for purchasing e-gift cards. The buyer chooses the amount they wish to give, enters the recipient’s contact information (such as phone number or email), and frequently creates a personalized note.
• Delivery: The e-gift card is sent to the recipient through email, text message, or mobile app after it has been purchased. A specific code or link that the recipient can use to use the gift card will be sent to them.
• Redemption: To use an e-gift card, the recipient usually adheres to the directions given in the email or text message. This could entail using a link or a code on the retailer’s website or mobile application. Some e-gift cards can also be used in-store by scanning a barcode or showing the code to the cashier.
• Balance: The receiver can normally check the balance of the gift card online or through the retailer’s mobile app once the e-gift card has been redeemed. Any emails or texts that the retailer sends may also contain the balance.
• Expiration: Just like conventional gift cards, egift cards often have an expiration date. The recipient’s email or text message may contain the expiration date, or it may simply list it on the retailer’s mobile app or website.

It’s important to keep in mind that depending on the merchant or gift card provider, the specific procedure for buying, sending, and redeeming egift cards may change. E-gift cards, however, may be bought and used completely online or through mobile devices, making them a practical and simple present option.

Gift card API, a tool to make your life easier.

Developers can incorporate gift card functionality into their apps via a gift card API, which is a programming interface. The API offers a selection of resources and capabilities that programmers can use to make, manage, and use gift cards.

Here´s how the gift card API works:

1. Integration: Before making use of a Gift Card API, developers need to at first incorporate it into their program. This could entail adding program code to their application, installing an SDK (Software development kit), or implementing a pre-made integration solution offered by the API provider.
2. Gift Card Creation: Developers can use the API to generate fresh gift cards once it has been integrated. This may include stating the gift card’s cash value, including a personalized message or design, and establishing any limitations or expiration dates.
3. Gift Card Management: Using the API, developers can supervise the whole lifecycle of gift cards. This could involve checking the balance of the gift card, monitoring its use and redemption, and cancelling or getting a refund of gift cards as necessary.
4. Redemption: The API can be used to apply the gift card amount to the customer’s profile or transaction and to check the gift card code or status when a gift card is being redeemed. Integration with a payment service or e-commerce platform may be necessary for this.
5. Reporting: The Gift Card API might also offer reporting features that let developers monitor the use and sales of gift cards, view past transactions, and create reports on the effectiveness of gift cards.

Why is gift card API a useful tool?

Flexibility

Integrating gift card capabilities into applications is made possible via a versatile Gift Card API. By linking their preexisting payment and e-commerce systems, adding custom branding or message, establishing specific limits or expiration dates, and other features, developers may adapt the gift card experience to match the unique demands of their consumers and business.

Scalability

Companies may quickly scale their gift card systems as their needs change with the help of a Gift Card API. Via a single API interaction, they can generate and handle an endless amount of gift cards, monitor their use and redemption, and produce data on their effectiveness.

Optimized Revenue

By giving customers a simple and practical means to buy and redeem goods or services, gift cards can assist businesses in increasing revenue. Businesses may provide customers the ability to buy and redeem gift card right within their application by integrating a Gift Card API. This provides an effortless and simple user experience that may drive repeat purchases and boost customer loyalty.

Cost Reductions

Through the implementation of a Gift Card API, companies can cut the price of manufacturing and distributing physical gift card. Digital delivery of egift cards eliminates the necessity of physical production and distribution, which saves money. Also, businesses can save the expense of developing a separate gift card platform by integrating gift card features into their current systems.

Better Customer Experience

By giving customers a simple and practical way to buy and use gift cards, a gift card API can assist to make the whole customer experience better. Businesses may give customers a consistent experience that makes it simple for them to handle their gift cards amongst their other activities within the application by incorporating gift card features into the application.

The most loved gift cards for employees

Are you curious about what are the most popular choices of gift cards for employees among our customers? Find out in our article 21 gift cards for employees loved by our customers and make sure you’ll deliver a gift that delights.

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