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Types of Gift Cards and How to Redeem it in Nigeria [2023] – Snappy Exchange Blog

Types of Gift Cards and How to Redeem it in Nigeria [2023]

Types of Gift Cards

Types of Gift Cards: In terms of time and money, gift cards rank among the top options for surprising someone special. The general public can choose between two distinct varieties of gift cards.

The first variety, known as “store purchased” cards, can be purchased for a specific amount at retail establishments such as supermarkets, pharmacies, and 24-hour convenience stores.

There’s possibly no rewards system associated with this type of card, or the card itself has no value. The second variety is a door-to-door card distributed by a distributor to single-family homes in a particular area.

type-of-giftcards
Two Most Popular Types of Gift Cards in Nigeria [2023]

Types of Gift Cards

 

Types of Gift Cards
Two Most Popular Types of Gift Cards in Nigeria [2023]

In contrast to closed-loop cards, such as Visa gift cards, open-loop cards can be used anywhere that particular brand of card is accepted. In contrast, closed-loop cards can only be used at the issuing business.

What is An open-loop card?

Open-loop is a word frequently used in the gift card industry. Different from “closed-loop” gift cards from retailers like Amazon, Target, Sephora, and others. Credit card businesses and financial institutions like MasterCard, American Express, VISA, and Verve issue “open-loop” cards. Open loop cards one of the types of Gift Cards.

They are essentially bank credit and debit cards that may be used at various point-of-sale terminals. A more excellent value can be stored on an available loop card than a closed loop card. It means that whereas gift cards (a closed loop card) can contain up to a million dollars, a VISA dollar card can only store up to a million.

What is a closed loop card?

A closed-loop card is a form of electronic payment that can only be used at one specific retailer. A closed-loop card, sometimes referred to as a “single purpose card,” is one that can only be used in a particular place. Gift cards to sites like Amazon, Apple, Steam, Nike, and our neighborhood shop qualify as “closed-loop cards.”

Electronic Gift Cards

Phone apps and electronic gift cards sent through email or text message make it possible for recipients to use their mobile devices solely.

Virtual Gift Card

A virtual gift card is the types of Gift Cards which can be sent through email to the recipient, eliminating the risk of the card being misplaced and saving the buyer the time and effort of going to the store to purchase a physical card.

This gift card may be acquired quickly, which is convenient if an unexpected gift-giving occasion arises. In addition, some businesses have started offering digital gift cards that customers may redeem with their mobile devices. Since the retailer is no longer involved, the Exchange is processed similarly to a wire transfer rather than a gift card.

Gift cards are usually plastic cards about the size of credit cards, and they may resemble or be themed like credit cards. Since the card is only associated with a number or code and not a name, anyone can use it. There is a web-based electronic authorization system supporting them.

It’s possible to use some gift cards more than once if they can be reloaded with money. Electronic credit card machines scan information stored on the card, such as a serial number, barcode, or magnetic strip. There are lots of cards that have no value unless they are purchased, and the cashier adds the amount the buyer specifies.

Rather than being recorded on the card itself, this information is typically kept in the store’s database and connected to the card ID.

Holidays, special occasions, sports teams, and cartoons are just a few topics that can be commemorated on different types of gift cards. The necessity to shop internationally has increased the popularity of gift cards such as those sold by Amazon, Apple, Steam, eBay, Walmart, and Macy’s.

Functions of Gift Card

Closed-loop gift cards can only be used in the store of the issuing merchant or other predetermined destinations determined by the issuing shop. The types of Gift cards to grocery stores, shopping centers, gas stations, and other businesses are always welcome presents.

Companies may offer gift cards for various reasons beyond only to boost their bottom line; lately, they’ve been using them as marketing tools and even as a part of their customer reward programs.

Whether you’re trying to break into an existing industry or want to show your appreciation to your most loyal consumers, gift cards are a great option. In addition, wholesale types of gift cards make it feasible to create a card-based rewards system that is both cost-effective and long-lasting.

Using Gift Cards

New client acquisition:

Electronics stores typically have more expensive items that many customers wouldn’t otherwise purchase; therefore, gift cards to such stores are often an excellent way to entice clients to make a purchase.

Customers who might not have otherwise checked out your establishment are tempted to do so via different types of gift cards. It may encourage repeat visits and further investments.

Maximize exposure for your brand

The different types of gift cards, if not all, are made to look like the company’s emblem and brand. It is a promotional tool that the customer may carry around. Customers continue to be exposed to your business due to purchasing gift cards for friends and family members’ birthdays and other special occasions.

Types of Gift Cards
Two Most Popular Types of Gift Cards in Nigeria [2023]

Increased revenue:

The different types of Gift cards have a predetermined value, but many recipients spend more than that. The promise of a gift card can pique a customer’s curiosity about the store’s offerings. It’s possible that once they start looking, they’ll find something that costs just a little more than the gift card. The customer will walk away happy even if they only pay a portion of the total price.

Mitigate rip-offs:

A cashback is no longer necessary when using an electronic gift card because the remaining balance can be left on the card. The different types of Gift cards can be exchanged for shop credit, eliminating the need for customers to return merchandise after the expiration date to get cash. Incentives like gift cards can be used in place of money to boost business.

Conclusion

If you’re looking to buy or sell your different type of gift cards in Nigeria in 2023, the rates listed   here are the best you’ll find. All other gift cards on the quick exchange marketplace pale in comparison to them in terms of popularity. Snappy Exchange is the best place to sell or buy gift cards and get paid instantly in cash.

Snappy Exchange is a highly recommended platform  for turning gift cards into cash. Gift card trading is quick and easy with snappy Exchange.

Read Also: How to Redeem A Gift Card in Nigeria