What is Prepaid Gift Card & What are its Benefits

Gifts are very important part of our life. On every occasion we need gifts to give to our close relatives and friends. Gift brings us closer.

There are number of ways, you can give a gift to your friends & relatives. One of the way that is gaining popularity lately is a Prepaid Gift Card.

If this is the first time, you have heard about prepaid gift card then you can read this article to know about gift cards offered by some of the top banks in India.

In India almost every bank offers prepaid gift cards. You need to get in touch with your bank and ask for the fees and charges for getting a prepaid gift card.

In this post, we shall talk about what prepaid gift cards are, its features and some of the benefits. We will also talk about documentation required by the bank.

What is a Prepaid Gift Card

Well there is nothing special to a prepaid gift card. It is just like a gift voucher; perhaps you could say a smart gift voucher. Prepaid Gift Card

It is basically a magnetic strip that looks exactly like your credit or debit card. However, it is absolutely not like either of them.

A gift card is different than a credit card because you cannot accrue debt on this card and it is not like a debit card because the amount of money you spent is not deducted from your bank account.

Hence, it is nothing like both of them. So what is it like?

You are allowed to purchase a prepaid gift card from your bank by paying the value of the card and other fees.

After receiving the fund your card will be activated by the bank. You can gift this card to anyone you like and recipient could use it across the merchant outlets which accepts cards like MasterCard, Visa, American Express etc.

If you make a purchase then amount will be deducted from the card balance.

Some of the Features of Prepaid Gift Cards

Now let us look at some of the features of the prepaid gift cards.

  • Prepaid gift cards are available in various denominations like Rs 500/-, Rs 1000/-, Rs 2000/- and Rs 5000/- also. You can create a gift card amount you like.
  • In India, prepaid gift cards are issued in a particular currency. Most of them use Rupees.
  • The gift cards can be used only at certain merchant outlets which accept such type of gift cards. Cards are meant for electronic use only.
  • Money in the prepaid gift cards is non-transferable to any other card or to a bank account.
  • The balance of a prepaid gift cards can be known by the user anytime by using ATM or contacting the bank.
  • Some of the prepaid gift cards comes with the PIN so you can check cards’ balance.
  • Most of the prepaid gift cards cannot be recharged. You need to ask your bank.
  • Finally these cards have validity period of one year.

So these were some of the features of prepaid gift cards. Almost all the banks that issue gift cards have these features. For more you can enquire the bank.

Eligibility and Prerequisite for Getting a Prepaid Gift Cards

Now let us look at the eligibility criteria of prepaid gift cards.

Fees and Charges

Minimum of Rs 50/- to Rs 100/- is charged by the bank for issuing a prepaid gift card. Some banks charge the money for required physical statements, registration of PIN, cancellation etc.

If a card is lost then similar amount is charged for the replacement. Bank will deactivate the lost card & then re-issue a new card providing the same balance available at the time of loss.

Documents

If purchaser is the customer of bank then they may not require any of your documents. However, if you don’t have an account with the bank and you want to purchase a prepaid gift card then you have to go through full documentation.

You need an identity proof and a residence proof for getting a prepaid gift card.

Most of the bank doesn’t require you to be the customer of the bank for purchasing a prepaid gift card.

Benefits of Prepaid Gift Cards

Now let us see some of the benefits of the prepaid gift cards

  1. The best part of the prepaid gift card is you have flexibility of spending the amount the way you like. You can shop, party and dine with the gift card.
  2. The user of the card can easily track his or her expenditure. Hence you know how much money is left with your gift card.
  3. Prepaid gift cards are safer compared to other gift vouchers because it has unique ID number printed on it.
  4. These gift cards are widely accepted at different merchant outlets. You can decide the value and location to spend the amount.
  5. Finally prepaid gift cards are more personal as compared to cash or any other gift. Hence, you could gift it to your daughter, son or wife.

After reading this article you might have an idea about prepaid gift cards and their benefits.

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