Return to Glossary

A Gift Card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases. Store gift cards are designed to be used at specific merchants or retailers, while general-use prepaid gift cards are not affiliated with any specific merchant and can also be used to withdraw cash at Automated Teller Machines (ATMs).

• A gift card is a prepaid debit card that is loaded with a specific amount, which can then be used to make purchases and other financial transactions.
• Store gift cards (closed-loop) are designed to be used for purchases at specific retailers, while general-use prepaid gift cards (open loop) may be used at a wider variety of locations.
• Some gift cards may allow for cash withdrawals at an Automated Teller Machine (ATM).
• Closed-loop gift cards are usually not reloadable.

Source: https://www.investopedia.com/terms/g/gift-card.asp