Gift Card
A gift card stores prepaid value for purchases from a specified merchant or through a supported payment network.
Prepaid and merchant-issued value products, including reloadable cards, gift cards, and store credit.
Prepaid, gift, and store-value products let a user spend value established before redemption, but the source and restrictions differ. A Prepaid Card can support reloads, purchases, direct deposit, or ATM access. A Gift Card is usually intended for value given to another person and may be restricted to a merchant or payment network. Store Credit is a merchant’s promise to apply value to a later purchase.
Start by identifying who holds the funds, who records the balance, where the value can be used, and whether it can be reloaded or redeemed for cash. Then compare fees, expiration terms, refund handling, replacement procedures, fraud protections, and any claimed deposit insurance.
These distinctions matter to consumers and businesses because the same dollar label can represent different rights and obligations. An unredeemed gift-card balance, a reloadable prepaid balance, and a refund issued as store credit should not be treated as the same asset or liability without checking the program terms and applicable rules.
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A gift card stores prepaid value for purchases from a specified merchant or through a supported payment network.
A prepaid card uses funds loaded before spending rather than drawing directly from a deposit account or credit line.
Store credit is merchant-issued value that a customer can apply to a future purchase under the retailer's terms.