What Are The Pros and Cons of Gift Cards?

What Are The Pros and Cons of Gift Cards?

Gift cards are gradually becoming a household name, especially in this part of West Africa. People, organisations and others in between have started recognising their ability and advantage in holding monetary value, either for gifted transactions on online stores or as a means to transmit and acquire cash after exchange. But with this growing trend comes the challenge of finding the perfect gift card.

Gift cards are cards preloaded with a certain amount of money, used for prepaid transactions. They can either be physical cards, taking the form of a credit card or digital. They are used by designated or accredited stores allowing customers to purchase items. Over time, they have become accepted because of their flexibility and convenience for both the sender and receiver.

In this article, we shall be taking pains to find out the pros and cons of gift cards to everyone, both the giver and the receiver of the transaction.


What Are The Pros and Cons Of Gift Cards?

Like all things useful to humans and technology, they come with their advantages and disadvantages. We shall be examining them in detail below:

Pros Of Gift Cards

Gift cards offer several perks:

1. Effortless Gifting

Physical and digital options make purchase and delivery a breeze. No more agonizing over the perfect present!

2. Budget Control

Set a spending limit by pre-loading the card. This helps both the giver and receiver stay within budget.

3. Enhanced Security

Unlike cash, lost or stolen cards often require a PIN and may be replaceable, minimizing theft risk.

4. Resale Value

In case you do not want or have any interest in using your gift cards, but want to use the value in cash, the FlipEx gift card to Naira platform is your best bet to get good Naira value on your gift cards at the best possible exchange rates. On FlipEx, gift card to Naira conversion is secure, safe, smooth and fast.

Cons of Gift Cards:

As advantageous as gift cards are, however, downsides exist which include

1. Limited Use

Gift cards might be restricted to a specific store or brand, reducing their flexibility.

2. Potential for Waste

Expiration dates can lead to unused funds disappearing. Some cards even accrue inactivity fees.

3. Lost Value

Losing or forgetting a gift card means losing its value. Replacing them can also be a hassle.

Gift cards offer a convenient gifting option, allowing recipients to choose their ideal present. However,  consider the potential for an impersonal feel, expiring funds, and fees before grabbing one. For sentimental occasions, a traditional gift might be more fitting.


How Do You Get the most out of gift cards?

1. Tailor the card to the recipient's interests: Giving them a gift card to their preferred retailer or manufacturer demonstrates your thoughtfulness.

2. Verify costs and expiry dates: Select a card with a fair validity term and no unanticipated fees to avoid unpleasant surprises.

3. Safely store gift cards: Handle them like money! To prevent loss or theft, forward digital cards right away and store physical ones in a secure location.

These pointers can help you maximise gift cards' ease and minimise any possible drawbacks, making them a considerate and practical choice for presents.


Wrapping it Up

Gift cards are a convenient choice that lets recipients pick exactly what they want. But weigh the pros and cons before you grab one.

Sure, gift cards are easy: no gift-picking stress, widely available, and easily sent electronically. They can even help both the giver and receiver stick to budgets. However, downsides exist. Gift cards might feel impersonal, and unused funds can vanish. Some cards have expiration dates or fees, and lost/stolen cards are a hassle.

You can also always trust FlipEx to handle all your gift card to Naira conversion needs; while also paying bills and conducting other financial transactions easily, securely and seamlessly. We also have a dedicated 24/7 customer support team that can help make your issues a thing of the past.

Our blog is also there to help give you insightful information about the latest trends and information about gift cards and crypto trading. Download, log in or register with us on your personal computer or our app for Android on Google Play Store; and iOS devices on the Apple App Store.

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