Open loop gift cards

These gift cards are issued by the banks or by the credit card companies. Their gift card can only be used at the establishments or the stores whether offline or online which are using their services. Like in the case of online retail stores, certain brands and companies offer discount or cash back to the customers using the gift cards as their payment method. In the discount, one will get an instant rebate but cashback can only be used while making another purchase. It doesn’t have an expiry date. The card will become obsolete when its monetary value becomes zero.

Closed loop gift cards

Several online or offline retail stores issue their own gift cards. Each allegedly entitles their respective cards as the best gift cards available. Such gift cards only can be used at the company’s respective store. These gift cards have different prices depending upon the monetary value it holds. They also have an expiry period and have to be redeemed within the stipulated time. These cards can be in the form of movie gift cards, food gift cards, travel gift cards or simply a gift card with some monetary value to be given as a gift to others.
Giving gift cards to people in their parties or to someone on an auspicious occasion may prove to be fruitful as it is a bit trendy and allows the people to use it whenever they want according to their will.