There are different types of gift cards available today. These cards work like prepaid payment cards, loaded with a set amount of money that you can spend at certain stores or websites until the balance runs out. 

Some gift cards can be reloaded and used again, while others are for one-time use only. They also come in two forms: physical plastic cards or digital e-Gift cards.

The Different Categories of Gift Cards

There are two main categories of gift cards:

1. Closed-loop gift cards:
   These are tied to a specific store or brand. This means you can only use them at that particular store or on their website. For example, an Amazon or Starbucks gift card can only be spent at Amazon or Starbucks.
    
2. Open-loop gift cards:
   On the other hand, these are more flexible. These are issued by major financial companies like Visa or Mastercard and can be used almost anywhere that accepts those payment networks. So, unlike closed-loop cards, you’re not limited to a single store—you can shop at different places, both online and in physical stores.

How These Types of Gift Cards Work

As we already talked about, gift cards may be physical or digital. So, let’s take a look at how these gift cards work.
 

1. Physical Cards - These are cards that can be bought and used physically, they are tangible, plastic cards and usually have a magnetic strip or barcode that is scanned at the checkout to deduct transaction amount from the card balance. Here is how it works:
 

• Purchase - Physical gift cards can be bought in-store, or from authorized third-party sellers, they come with a fixed or customizable amount.
• Activation - Some cards require activation at the point of purchase before you can be allowed to use it.
• Usage - You can use the card for in-store or online purchases, depending on the financial institution or brand.
• Balance Management - So, you can check for your remaining balance through receipts, the store websites or customer service numbers provided by the issuer.
• Expiration and Fees - Some physical gift cards may have expiration dates or fees for maintenance if not used within a specific period, but, the regulation varies by the brand, issuer and location.

2. Digital Cards - They are also known as eGift cards, they are the virtual version of our gift cards. Instead of a physical card, they are delivered electronically via email, SMS, or mobile apps. They function similarly as physical cards but they offer added convenience as they can be stored and used on smartphones. So, here is how it works:
 

1. Purchase -  There’s no need to wait for shipping, they are certainly delivered immediately or on a scheduled date.
2. Convenient Storage - They can be stored on phone, email or an app, so to reduce the risk of loss. It is widely accepted anywhere there is a physical card, allowing flexibility and ease of use.

Most Popular Types of Gift Cards in the USA

1. Retail Gift Cards

These are a type of customized card issued by specific stores, brands, or retail chains, they allow customers access to the products of the designated brands at discounted prices, and of course, they carry the logo of the brand or stores they are issued from such that you can quickly identify one if you see it. 

These cards are perfect for shopping, electronics; including computers, smartphones, tablets, and TVs, clothing, and home essentials. You get to shop at your specific brand, without having to pay for your shopping directly from your wallet. Examples of these gift cards include:

•  Amazon – One of the most requested gift cards
• Walmart – Ideal for groceries, electronics, and household needs
• Target – A great all-purpose shopping card
• Best Buy – For tech lovers and gadget enthusiasts
• Nike – Perfect for fitness and sneaker lovers
• Macy’s – A top choice for fashion and accessories
• Nordstrom – Premium clothing and designer brands
• Home Depot & Lowe’s – For home improvement and DIY projects

2. Entertainment Gift Cards

Entertainment cards are redeemable cards that serve as a great way to give you access to movies, gaming services, music and streaming services of your choice without any hindrance. Here are some popular entertainment gift cards option:
 

1. Streaming Services

• Netflix Gift Card – For watching movies and TV shows.
• Disney+ Gift Card – Access to Disney, Marvel, Star Wars, and Pixar content.
• Hulu Gift Card – For TV shows, movies, and live TV.
• HBO Max Gift Card – Premium series and movies.
• Amazon Prime Video Gift Card – Access to movies and TV shows.

2. Music & Audio

• Spotify Gift Card – Premium music streaming without ads.
• Apple Music Gift Card – Subscription to Apple Music and iTunes purchases. If you have an unused iTunes gift card, check this guide on how to sell an iTunes card for cash or trade. 
• Google Play Gift Card – For music, apps, and media.

3. Gaming

• PlayStation Store Gift Card – Games, add-ons, and subscriptions.
• Xbox Gift Card – Buy games, movies, and Xbox services.
• Nintendo eShop Gift Card – Purchase games and in-game content.
• Steam Gift Card – For PC gamers to buy games and add-ons.

4. Movie Theaters

• AMC Theatres Gift Card – For movie tickets and concessions.
• Regal Cinemas Gift Card – Movie experiences in Regal locations.
• General Entertainment & Apps
• Google Play Gift Card – Use for movies, games, and apps.
• Apple App Store & iTunes Gift Card – Buy apps, games, and subscriptions.

3. Restaurant & Fast-food Gift Cards  

Restaurant cards are redeemable vouchers that can be given to the food lover around you, it allows you and your loved ones to enjoy cuisine experience at your favourite restaurant without having to pay a dime directly from your pocket and still enjoy the flexibility that comes with it. Here are some popular examples of the best type of restaurant gift cards:
 

1. Fast Food Chains

• McDonald's Gift Card – Use for burgers, fries, and more.
• Burger King Gift Card – Redeemable for Whoppers, fries, and drinks.
• Wendy’s Gift Card – Good for burgers, salads, and drinks.
• Subway Gift Card – Perfect for sandwiches and subs.
• KFC Gift Card – Use for fried chicken and combo meals.

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2. Casual Dining & Family Restaurants

• Applebee’s Gift Card – Good for a variety of casual American meals.
• Chili’s Gift Card – Use at Chili’s, Maggiano’s, and On The Border.
• Olive Garden Gift Card – Great for pasta, breadsticks, and Italian dishes.
• Red Lobster Gift Card – Seafood lovers will enjoy this option very well.

3. Coffee & Dessert

• Starbucks Gift Card – For coffee, tea, and snacks.
• Dunkin’ Gift Card – Use for coffee, donuts, and breakfast items.
• Cold Stone Creamery Gift Card – For ice cream treats.
• Baskin-Robbins Gift Card – Perfect for ice cream and cakes.

4. Travel Gift Cards

Travel gift cards are redeemable vouchers that can be used by yourself or given to your loved ones which can be used for travelling without directly paying for their travel expenses, it is perfect for frequent travelers and those who enjoy unique experiences. Here are some popular examples of the best type of travel gift cards:
 

• Uber, Lyft and Hertz– These are perfect for rideshare users.
• Airbnb, Hilton, Marriott Bonvoy – These are great for vacation rentals and bookings.
• Southwest Airlines & Delta Airlines – These are travel-related gift cards.

5. Prepaid Gift Cards

Prepaid gift cards are versatile cards that offer flexibility since they can be used anywhere that accepts major credit and debit cards. It works well for people who love convenience while shopping, making them a great and go-to option for gifts, budgeting, or online shopping. Here are some of the most popular prepaid gift cards:
 

• Visa Gift Cards – This can be used almost anywhere and they come with different options.
• Mastercard & American Express Prepaid Cards – They are versatile prepaid cards that work just like debit cards.
• Vanilla Gift Cards – Another popular prepaid card option.
• Green Dot Prepaid Visa – This is useful for budgeting and online purchases
• Paypal Prepaid Gift Card - This card adds funds to a paypal account.
• Grocery & Dining Prepaid Cards - This is used for grocery delivery orders

Frequently Asked Questions

There are common questions that customers often ask on the types of gift cards. Let’s take a look at some:

Where can I buy different types of gift cards?

You can buy gift cards in several places, including retail stores, online platforms, and marketplaces. Many brands also sell their own gift cards directly on their websites. Check the Complete List of Gift cards available at CVS for a variety of options to chose from.

What’s the difference between store gift cards and prepaid gift cards?

The main difference is how and where they can be used. Store gift cards (also called closed-loop gift cards) can only be used at a specific brand’s store or website—like an Amazon or Starbucks gift card. Prepaid gift cards (open-loop cards), such as Visa or Mastercard gift cards, can be used anywhere that accepts those payment networks, making them much more flexible.

Which type of gift card is best for gifting?

The best gift card depends on the person you're buying it for. If they love shopping at a particular store, a store gift card is perfect. But if you’re unsure of their preferences or want to give them more spending freedom, a prepaid Visa or Mastercard gift card is a great choice. Check the article for more details on which type suits different situations.

Can I trade all types of gift cards for cash?

Yes, most gift cards can be exchanged for cash, but the process and value depend on the type of card and where you sell it. Some platforms specialize in buying and selling gift cards, while others may have restrictions. Always check trusted marketplaces to get the best deal. If you're specifically looking to sell Apple gift cards, make sure to compare different platforms for the best rates.

Are there different types of Visa gift cards?

Yes! Visa gift cards come in different types based on their features and where they are issued. Some are reloadable, while others are one-time-use only. Some can be used internationally, while others are limited to specific regions. Always check the details before purchasing to make sure it suits your needs