Understanding How Online Gift Cards Work
Quick answer
- Online gift cards are digital codes or links sent via email or text.
- They can be used on a merchant’s website or sometimes through a mobile app.
- You typically enter the gift card number and PIN at checkout.
- Many online gift cards can also be used in physical stores.
- Check the card’s terms for expiration dates and fees.
- Keep your gift card details secure, just like cash.
Who this is for
- Consumers looking to purchase or use gift cards online.
- Individuals who have received digital gift cards and need to understand their usage.
- Shoppers seeking to manage their gift card balances and avoid losing value.
What to check first (before you act)
Your Goal and Timeline
Before diving into using or buying an online gift card, clarify what you want to achieve. Are you buying a gift for someone else, or are you looking to use a gift card you received? What is the timeframe for this purchase or redemption? Understanding your objective will help you choose the right type of gift card and ensure you use it effectively before any potential expiration.
Current Cash Flow
Assess your current financial situation. Do you have the immediate funds available if you are purchasing a gift card, or are you relying on this as a form of payment? If you are using a gift card, ensure its value aligns with your spending plan. Knowing your cash flow helps prevent overspending or unexpected financial strain.
Emergency Fund or Safety Buffer
Confirm you have a solid emergency fund in place before making non-essential purchases, including gift cards. A robust emergency fund ensures you can cover unexpected expenses without dipping into funds meant for essential needs or savings goals. Gift cards are generally considered discretionary spending.
Debt and Interest Rates
If you’re considering buying a gift card with money you don’t have readily available, evaluate your existing debt. High-interest debt, like credit card balances, should typically be prioritized over discretionary spending. The interest you pay on debt can quickly outweigh the value of a gift card.
Credit Impact
Purchasing gift cards generally doesn’t directly impact your credit score. However, if you were to finance a gift card purchase through a credit card and then fail to make payments, it could negatively affect your credit. Always use gift cards as a form of payment for goods or services, not as a loan.
Step-by-step (simple workflow)
1. Receive or Purchase the Gift Card
What to do: Obtain the gift card, either as a physical card with digital details or a purely digital code/link sent via email or text. If purchasing, select the retailer and value.
What “good” looks like: You have a clear digital code, a link, or a physical card with scannable information.
Common mistake: Losing the email or text containing the gift card details.
How to avoid it: Forward the gift card email to yourself for safekeeping, save it in a dedicated folder, or take a screenshot of the code and store it securely.
2. Locate the Gift Card Information
What to do: Find the gift card number and any associated PIN or security code. This is usually found on the back of a physical card or within the digital message.
What “good” looks like: You have the full gift card number and PIN readily available.
Common mistake: Not realizing a PIN is required until checkout.
How to avoid it: Look for a PIN or security code field when you first receive or view the gift card details.
3. Visit the Merchant’s Website or App
What to do: Navigate to the website or open the mobile app of the retailer that issued the gift card.
What “good” looks like: You are on the official, legitimate website or app of the merchant.
Common mistake: Landing on a phishing website that looks like the real merchant.
How to avoid it: Always double-check the website URL for misspellings or unusual characters. Use bookmarks if you frequently shop with a particular retailer.
4. Add Items to Your Cart
What to do: Browse the products and add them to your online shopping cart as you normally would.
What “good” looks like: Your desired items are in the cart, and you are ready to proceed to checkout.
Common mistake: Assuming the gift card will cover the entire purchase, including shipping and taxes.
How to avoid it: Be prepared to pay any remaining balance with another payment method.
5. Proceed to Checkout
What to do: Click on your shopping cart and begin the checkout process.
What “good” looks like: You are on the payment or order summary page.
Common mistake: Missing the gift card entry field.
How to avoid it: Look carefully for sections labeled “Gift Card,” “Promo Code,” or “Payment Options.”
6. Enter Gift Card Details
What to do: Input the gift card number and PIN into the designated fields.
What “good” looks like: The system accepts your gift card information.
Common mistake: Typos in the gift card number or PIN.
How to avoid it: Carefully type the numbers and letters, or use copy-paste if possible. Ensure you are entering the correct sequence.
7. Apply the Gift Card to Your Order
What to do: Click a button to apply the gift card value to your total.
What “good” looks like: The gift card balance is deducted from your order total.
Common mistake: The gift card value isn’t reflected in the final price.
How to avoid it: If the value doesn’t apply, re-enter the details or check the gift card’s terms for restrictions.
8. Pay Any Remaining Balance
What to do: If the gift card doesn’t cover the full amount, use another payment method (credit card, debit card, PayPal) for the remaining balance.
What “good” looks like: Your order is successfully placed, and the total is paid.
Common mistake: Realizing at the last minute that you don’t have another payment method for the remaining amount.
How to avoid it: Always have a backup payment method ready.
9. Review and Confirm Your Order
What to do: Carefully review all order details, including the items, shipping address, and final cost.
What “good” looks like: The order summary is accurate, and you are satisfied.
Common mistake: Confirming an order with errors due to rushing.
How to avoid it: Take a moment to read through everything before clicking the final confirmation button.
10. Check Your Gift Card Balance
What to do: After the purchase, check your gift card balance to see the remaining amount. This can usually be done on the retailer’s website.
What “good” looks like: You know the exact remaining balance for future use.
Common mistake: Forgetting about the remaining balance and letting it expire.
How to avoid it: Note the balance and set a reminder to use it soon.
Common mistakes (and what happens if you ignore them)
| Mistake | What it causes | Fix |
|---|---|---|
| Losing the digital gift card code | Inability to use the gift card value | Contact the issuer immediately with proof of purchase or receipt. |
| Entering incorrect gift card number or PIN | Gift card not being accepted | Double-check the numbers and PIN, re-enter carefully. |
| Using a fraudulent or expired gift card | Inability to complete purchase, loss of funds | Verify legitimacy and expiration dates before attempting to use. |
| Not checking for purchase restrictions | Unexpected inability to buy specific items | Review the gift card’s terms and conditions for any exclusions. |
| Forgetting about remaining balance | Loss of funds due to expiration or inactivity | Regularly check balances and plan to use them. |
| Using a gift card for a purchase that gets returned | Difficulty in getting the refund value back | Understand the retailer’s return policy for gift card purchases. |
| Falling for phishing scams for gift cards | Loss of money or personal information | Be wary of unsolicited offers and always verify sender legitimacy. |
| Not having a backup payment method | Inability to complete a purchase if gift card doesn’t cover the full cost | Always have a credit card or debit card ready. |
| Assuming gift cards are universally accepted | Confusion at checkout if a digital gift card isn’t usable online | Confirm the card is valid for online use with the specific merchant. |
| Not checking for fees (e.g., inactivity fees) | Unexpected reduction in gift card value | Read the terms and conditions carefully for any potential fees. |
Decision rules (simple if/then)
- If you receive a digital gift card via email, then forward it to a dedicated email folder because it helps keep track of your available funds.
- If the gift card is for a large amount, then consider checking its balance online before making a purchase because you’ll know how much is available.
- If you are buying a gift card for someone else, then choose a retailer they frequently shop at because it increases the likelihood they will use it.
- If you see a website offering “free” gift cards that seems too good to be true, then it is likely a scam because legitimate offers are rare and usually have conditions.
- If a gift card has an expiration date, then plan to use it before that date because unused value is often forfeited.
- If you are unsure about a website’s legitimacy, then do not enter your gift card details because it could be a phishing attempt.
- If the gift card value doesn’t cover your entire purchase, then have another payment method ready because you will need to pay the difference.
- If you receive a physical gift card, then treat the number and PIN like cash because losing them can mean losing the value.
- If you are returning an item purchased with a gift card, then expect the refund to be issued back to the gift card because that’s standard retail policy.
- If you are buying a gift card online, then ensure you are on the official merchant website because third-party sites can be risky.
- If you encounter issues using an online gift card, then contact the retailer’s customer service because they can help troubleshoot.
FAQ
How do I find the gift card number and PIN for an online gift card?
Look within the email or text message you received. The gift card number is typically a long string of digits, and the PIN is often a shorter, separate code. Sometimes, you may need to click a link to reveal the full details.
Can I use an online gift card in a physical store?
Many online gift cards can indeed be used in brick-and-mortar stores. Check the terms and conditions of your specific gift card to confirm if it’s valid for in-store purchases.
What happens if my online gift card expires?
If an online gift card expires, you will typically lose any remaining balance. It’s crucial to check the expiration date and use the card before it becomes invalid.
How do I check the balance of my online gift card?
Most retailers provide a way to check your gift card balance on their website. Look for a “Check Balance” or “Gift Card” section, where you’ll usually enter the gift card number and PIN.
Can I buy anything with an online gift card?
Generally, yes, but there might be exceptions. Some gift cards have restrictions on what they can be used for, such as specific product categories or services. Always review the card’s terms.
What if I lose the email with my online gift card?
If you lose the email, try searching your inbox for the retailer’s name. If you can’t find it, contact the retailer’s customer support with your order confirmation or proof of purchase.
Is it safe to store my online gift card details in my email?
It’s generally safe if your email account is secure with a strong password and two-factor authentication. However, for added security, you might consider forwarding it to a dedicated, secure digital wallet or a password manager.
What this page does NOT cover (and where to go next)
- Specific retailer policies and terms for their gift cards. (Next: Visit the retailer’s website for detailed FAQs and terms of service.)
- Legal regulations regarding gift card dormancy and expiration laws in specific states. (Next: Research consumer protection laws in your state or consult a legal professional.)
- Advanced gift card scams and how to identify them in detail. (Next: Explore cybersecurity resources or consumer protection agency advisories.)
- The process of selling unwanted gift cards for cash. (Next: Look into reputable gift card exchange websites or services.)
- Using gift cards for international online purchases. (Next: Check with the specific retailer about their international shipping and payment policies.)