Gift Cards

The development of gift cards actually began during the First World War, as military script and civilian bonds were introduced in the United Kingdom and the United States. The massive growth in the military caused by the war’s multi-front status meant that funding was at a premium. Governments who were uncomfortable levying taxes and surcharges against their citizens resorted to the use of script in order to fund the creation of military equipment. The idea behind script was that an investment in a war bond meant that individual citizens had a stake in the outcome of the war. In essence, the product they were receiving for their investment was national defense.

As retail businesses grew out of the experiences of the World Wars, they began to utilize script and gift subscriptions as a method of maintaining customer loyalty. Clothiers, bakers, and an assortment of other retailers utilized gift certificates as a way to ensure that a certain amount of money was coming their way. Instead of an amorphous concept like national defense, customers were receiving goods and services in return for their money. Customers saw the virtues of gift certificates and script as a way to frequent their favorite businesses, as well as a new outlet for their gift giving needs. Essentially, it was a winning situation for both retailers and consumers: retailers drew more visitors to various establishments and increased sales and consumers got to purchase items easily from such establishments.

Gift cards are available through thousands upon thousands of companies, whether retail outlets or online companies. Customers who want to use gift cards for their own needs, as a reward for someone else’s works, or as gifts, can purchase plastic gift cards in a number of ways. The most common way to purchase a gift card is to personally go to the store in question or to a major retailer that offers gift card displays for a variety of partner companies. Many companies offer their gift card options, such as custom gift cards, at the checkout counter, as a way of speeding up the process and encouraging last minute purchases of gift cards.

However, in-person purchases of plastic gift cards are not the only way to acquire these products. Thanks to the advent of the Internet, gift cards are not easier to obtain. Retailers of all varieties throughout the world offer the opportunity to purchase gift cards via their websites. These online purchases can fall into two categories. Consumers interested in purchasing a gift card for use in a store can purchase the traditional plastic gift cards. However, there is usually an option for the acquisition of “virtual” gift cards which can be used for Internet purchases. These electronic gifts can be sent to a friend via e-mail or used to support an online company.

Corporations in the United States and United Kingdom have been offering credit lines to their most active customers over the last two decades. These credit lines allow customers to have more money at their disposal to buy furniture, clothing, or anything else they need. The use of these credit cards has become more frequent as young professionals try to realize their dream of having it all. One of the perks of these credit lines is the ability to earn free money for use at their store. These perks are generally rewarded in the form of a loyalty card.

Custom gift cards such as loyalty cards are typically plastic swipe cards or paper certificates which can be used for a certain amount of money at the retailer in question. Credit holders typically need to reach a certain number of purchases or a certain period of longevity with a retailer before earning these rewards. However, companies that want to maintain customer loyalty over the long term go out of their way to offer the best loyalty cards possible. These plastic swipe cards typically feature an online code, which allows it to be used for Internet purchases, as well as the option to use it in retail storefronts. Also, some loyalty gift cards can be spent anywhere and can be used just like a credit card.

The challenge of finding the right present has become more complex over the years, as people are having bigger families and developing close relationships at work. Finding the best present for dozens of people on a variety of occasions can be quite daunting, especially for busy professionals. However, companies that sell popular gift items like small electronics and clothing have begun to make this process easier for consumers. Gift cards have been promoted by retail companies as the new solution to the gift giving problem. Consumers need to seriously consider the use of gift cards as presents before taking the leap.

On the one hand, plastic swipe cards are a great way to give your loved ones or co-workers an opportunity to buy something they truly want. Consumers may know that a gift recipient enjoys a particular retailer but may not know what to get them as a present. In this way, gift givers can purchase a gift card for any amount they want so that their friends or family can buy themselves the products they want.

On the other hand, customers are still grappling with the concept that the plastic swipe card is an impersonal approach to gift giving. Gift-givers everywhere need to think of the person whom they are giving the gift to before deciding on a gift card option. A co-worker, manager, or someone who may not be known for very long may be a great recipient for a gift card. A close friend or family member, however, may want to receive something more personal than a gift card. It really depends on the personality of the gift card recipient; some recipients like getting gift cards that act as cash while other people may feel that a gift card is impersonal.

Consumers throughout the world have favorite products, like shoes or video games, that they feel make their lives better. This product loyalty can lead to consumer loyalty to a specific company that provides that product, as they are identified with a quality item. Shoe companies, video game producers, and the like give their customers as many ways as possible to show their loyalty. While measures of loyalty like online fan clubs and the simple act of patronizing a business are seen as important, giving a gift card can be seen as a good investment in a company.

The world of the stock market is often too daunting for the average person and purchasing the entire product line of a particular company may seem like a big task. However, consumers who want to get the word out about their favorite business can use gift cards as a way to show their investment in that business. Gift cards can be used as gifts for friends or rewards to employees and are invaluable in showing a consumer’s support for a company. This show of emotional investment by consumers has been a positive if unintended consequence of corporate gift card programs.

While gift cards are a great option for gift givers and other consumers, there are several limitations to these products that need to be addressed. Consumers should certainly consider the pros and cons of gift cards before using them in their daily lives. The two major limitations of gifts cards deal with issues of time and technical issues.

Many people assume that a plastic gift card is usable in perpetuity as long as there is enough money on it for purchases. However, the fine print on most gift cards shows that there is a certain time limit on the use of these products. Many gift cards have a six month to one year time limit before surcharges are assessed against the balance. Diners and customers at retail establishments are often surprised to find that their gift card has less money than they thought when they go to pay the bill. The best way to stave off this limitation is to review time limits before purchasing a gift card. As well, consumers can usually call a customer service line to get an updated balance. Finally, consumers will find that they can now add more money to the gift cards they receive, thereby extending the expiration date of the gift card in question.

The other limitation that comes with the use of gift cards deals with the magnetic strip that is used to update information through checkout computers. These strips can become demagnetized or tampered with due to constant contact with other cards or highly magnetized equipment. While there has been conflicting evidence about this effect upon plastic swipe cards, it is nonetheless a real consideration for those who plan to keep their cards in places where they can be demagnetized.

Retail outlets throughout North America and Europe have recognized the growth of gift cards as a major part of their business. Consumers have taken to gift cards because of their utility in a variety of settings. However, retailers throughout the world have developed an understanding that gift cards can be a great marketing tool. Savvy people shopping at any stores recognize the power of marketing efforts in gift cards.

Major retailers have begun using the same marketing tools for their gift cards that they use in advertising pieces. Television, Internet, and print advertisements typically feature a combination of corporate branding efforts and colorful graphics. A stroll down any aisle at a local grocer or shoe store will reveal that gift cards are showing the same features. The graphics used on gift cards range from simple colors and a corporate symbol to more elaborate designs meant to dazzle the eye. These products can feature 3-D illusions, multiple pieces, and sound effects. Consumers should see these design efforts as a great way to freshen up the gift giving process and add some color to their lives.

Many shoppers fail to realize how their individual consumer decisions affect the larger economy. People that purchase apples, new pairs of jeans, or television sets are creating small building blocks for the success of a company. Companies have expanded from regional to national and international connections, which means that the success of any retailer is based on millions of choices by consumers. The use of gift cards has facilitated the expansion of retail outlets to far-off places and set off a domino effect for the global economy.

Gift card usage allows consumers to be more portable in their consumption decisions. Thus, the face and operation of many industries are constantly changing based on consumer purchases and demand. Shoppers who are on the move a lot, whether due to work or general travels, are not tied into their local set of shops. Instead, they can use a plastic swipe card or loyalty card to get necessities or gifts anywhere in the world. Gift cards have allowed companies to save on facility costs and salaries by increasing their presence on the Internet. Finally, gift cards are significant for the global economy because they demonstrate the passing of hard currency into the background. Credit cards, gift cards, and electronic transactions are the wave of the future.

Before consumers invest entirely in the idea of gift cards as a solution to many issues in the retail environment, they should first consider the future of these items. Indeed, the future looks bright for plastic swipe cards and other gift card options. Millions of people are turning to gift cards for any number of reasons, and their designs make them a good fashion statement for the fashion-conscious consumer. Corporations, as mentioned above, are putting a lot of their marketing efforts and outreach into gift cards and similar products.
As the future progresses, it is likely that gift cards will be as common as credit cards and paper currency in the wallets of the average world citizen. Mobile phone companies are beginning to create gift card options for “pay as you go” plans, which allow consumers to pay for the minutes that they use. Other companies allow gift cards to be used as a sort of debit card, with bank accounts connected to the card as a backup funding option. The only threat to gift cards at present is the rapid development of purely electronic funding options in the marketplace. Consumers are turning to virtual forms of payment instead of plastic and paper forms, as they can often be simpler to use. However, the foreseeable future of the gift card is bright for consumers and corporations alike.