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Open loop gift cards are offered by banks and/or credit card companies and can be used at any number of merchants, while a closed loop gift card can only be used at the merchant that issued the card. On page one we mentioned buying a gift card that encompasses an entire mall. That would be a hybrid closed loop card, a bundle of closed loop cards. Obviously, the first or third option gives the user more options as to what they use the gift card for.
Some gift cards are also reloadable. This is handy for cards you might use often, such as a card you'd use at a place like Starbucks--or Tim Horton's if you're here in Canada.
It would be easier to answer who doesn't offer gift cards. Most retailers offer some sort of gift card. Major credit card companies like Visa, MasterCard and American Express offer them, as do most segments of the travel industry. Restaurant chains and gasoline retailers issue gift cards as well. How about a gift card from iTunes or Dell? Check with the info desk at the favourite mall of the person you are buying for, and see if they have gift cards. As you can see, your options are endless. And if you're lucky, you can sometimes score a free gift card!
But do yourself a favour. Consider the person you are buying for, and get a card from a merchant you are certain they would shop at. If you don't, you've just handed the merchant the gift, not the person you thought you were buying for. Because if the gift card is never used, that $25, $100 or whatever amount the card was for, is money in the pocket of the merchant.
Types of Gift Cards
Who Offer Gift Cards
Gift Card Exchange or Swap
In light of that last fact, check out the online gift card exchanges. These are sites that will swap gift cards. So, if you ever end up with a gift card you know you'll never use, hand it over for something you will use.
Now, gift cards are a great idea, but you need to be aware of some drawbacks. Give some consideration to possible gift card pitfalls.
