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A gift card is a type of prepaid debit card, or stored-value card, typically sold by banks, credit unions, stores, and other online merchants, that can be used as an alternative to cash when making purchases. Gift cards are also popularly given as gifts, whether to mark special occasions like birthdays and holidays or simply as tokens of appreciation.
Gift cards are convenient—recipients can make a purchase wherever the card is accepted. In Asia Pacific, the value of gift card purchases exceeded $61billion in 2018 alone—a figure that is continuing to grow. A key attraction is that cards are not subject to the same regulations as credit and debit cards, which often require merchants to meet certain criteria before running certain types of transactions.
Gift cards are also seen as a safe option for those concerned about the potential for card fraud. With a gift card, the risk of fraud is limited to the amount loaded onto the card. If the gift card is lost or stolen, the cardholder can call customer service to report and request a replacement.
For those looking to give someone a gift, a gift card is an ideal option. Its practical, convenient, hassle-free, and now more secure than ever.