What is a gift card?

Before learning about a universal gift card, it is important to understand about a gift card. A gift card is known by different names in different regions. For instance, in the UK a gift card is called a gift token. In America, it is called a gift certificate.

A gift card or gift voucher is a value money card that is stored. It is usually prepaid and is issued by a bank or a retailer. A gift card is for money. For example, if you have a gift card from a certain store, you can use that gift card to buy things from that particular store.

Every gift card has a specific limit. You can only buy items from a store that are lesser or equal to the limit of the gift card. You can get a gift card from a store or bank. However, gift cards are given out as gifts or rewards by different stores and shops.

Various gift cards like a universal gift card are also used for the promotion of businesses. New businesses and ventures give out gift cards for free to attract people to their businesses and start-ups. Hence, gift cards work as a great promotion strategy.

When gift cards are used as a promotion strategy, they are also called cash cards. It is because usually gift cards are used in place of cash or real money.

Generally, one cannot redeem the cash of a gift card. You can only use a gift card for buying things from a particular store or chain of stores. Some gift cards do not have an expiry date while some others do. Some gift cards are given out free while some are sold in exchange for money. 

A generic gift card is called a universal gift card. It means that the use of the gift card is not limited to a store or business. Instead, it can be used in any store or shop globally. Such gift cards are usually anonymous and are discarded when their balance is over.

According to a study, gift cards are the second most given gift in the United States. Gift cards are popular because through gift cards people can buy whatever they like instead of accepting a specific gift. Thus, it gives the freedom of choosing gifts to the people who are accepting them.

Hence, gift cards have slowly become an ideal gift for a lot of people.

The history of gift cards

The first gift card in history was introduced by Neiman Marcus in 1994. Soon after introducing gift cards to the public, they became very popular. 

Apart from using it as a promotional strategy, gift cards were also succeeding in improving the relationship between a buyer and a seller. It was the reason that the customers felt respected and valued when such gift cards were given to them by sellers and retailers. 

Same way, the retailers also liked the idea of gift cards since gift cards were making their customers happy and satisfied. Thus, gift cards became the second most given gift.