What is a Gift Card?

A gift card is essentially a prepaid card designed for making future purchases. It is loaded with a specific monetary value and can be used by the recipient to shop at specified retailers or within particular systems. This attribute makes it distinct from other types of cards, such as those solely for cash withdrawals or limited to a single retailer.

Gift cards are typically associated with specific brands or merchants, allowing users to select items they want rather than receiving cash, which could be used indiscriminately. They are popular because they provide a thoughtful gifting option while also giving the recipient the flexibility to choose their products or services.

While some gift cards may have restrictions on where they can be used, the defining characteristic is that they are prepaid and intended for future transactions, which aligns perfectly with the concept of making purchases later.