Question

What are the advantages and disadvantages of gift cards?

6 years ago - 5 answers

Best Answer

Chosen by Asker

The advantage to the receiver is that it is like a credit card with a limit. They are usually offered by speciality store for use within their own or sister stores up the limit charged to the card. You can buy a little or a lot on these cards until the credit limit is reached.

The disadvantage is that if lost - these cards are as good as cash to the dishonest finder. They can be used by anyone who has them.

If you are given one, the best thing to do, is to treat is as cash and keep it in a safe place until you do use it.

6 years ago

Other Answers

They are a simple way to send a gift of cash to someone else. However, if stolen, they are also as good as cash. Besides that, many major gift cards have penalties for lack of use within a certain time. If the card sits around unused sufficiently long, its value can turn to zero.

by acermill - 6 years ago

The only disadvantage I see is that it's a little impersonal. The advantages is that if you really don't know the person or their specific tastes then it's the perfect gift. They get EXACTLY what they want. I love gift cards cause I'm very picky, my mom just gave me a pair of earrings and a bracelet that I would have NEVER bought for myself even if they'd be on sale. Sad when even your own mother doesn't know your tastes!

by PinkTulips4Me! - 6 years ago

I don't know why people use these rather than just giving cash. The gift cards can only be used at the issuer's store and you don't receive change which usually forces you to buy more than what the card is worth to use it up. Cash is still king.

by Harbinger - 6 years ago

The Gift Card Sellers Come Out On Top
Gift card sales for retailers and credit card companies are big business. Basically they receive payment in advance for products or services they may or may not ever have to deliver. For every dollar on a gift card that is not redeemed, the gift-card seller earns a profit. In 2006, Best Buy reported over $43 million in unused gift cards remained on its books from the two previous years
advantages for the merchant are that MILLIONS of bucks are lost by consumers who loose the cards
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Source(s)

by lisa s - 6 years ago