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A gift card is a prepaid card that has a stored denomination pre-loaded on it by the issuer. Though some gift cards are only redeemable at specific stores, there are many types of gift cards that are issued by banks or credit card companies and can be used wherever the card is accepted.
Unlike a traditional credit or debit card, a gift card does not link to a specific account. The card is used by buyers to purchase goods and services until the balance is fully depleted. Where the card is lost or misused, it is not possible to recoup some or all of the money lost.
Some gift cards can be purchased with a pre-set amount of money already loaded on them, or the buyer can choose to load any denomination amount at the time of purchase. Some gift cards are general purpose, meaning they can be used anywhere the card is accepted, while others may be store specific.
It is important to note that gift cards can also have expiration dates, and fees associated with them, such as an activation fee or a dormancy fee. Activate the card as soon as you purchase it, and be familiar with the card terms to avoid any potential fees.
Gift cards are great gifts to give to those who are difficult to shop for, or as a token of gratitude for someone's services. After the balance of the card has been depleted, it can then be recycled for other uses.