Glossary Terms
Plum - Rewards, Incentives and Payouts Platform
Digital Gift Card
A digital gift card is an electronic version of a traditional gift card that can be purchased, delivered, and redeemed online. Often sent via email or mobile app, digital gift cards provide a convenient, flexible gifting option for both individuals and businesses.
What is a digital gift card?
A digital gift card is an electronic version of a traditional physical gift card. It's a prepaid stored-value card that can be used for purchases at a specific retailer or a group of retailers.
Instead of a physical plastic card, a digital gift card is delivered electronically, typically via email or a mobile app. It contains a unique code that can be redeemed online or in-store to apply the card's value to a purchase.
How do digital gift cards work?
Digital gift cards operates on a similar principle to a physical gift card but exists entirely in a digital format. Here’s a breakdown of the process:
- Purchase: The buyer purchases a digital gift card online from the retailer or a third-party platform. They specify the card's value and the recipient's email address.
- Delivery: The digital gift card is delivered electronically to the recipient via email. This often includes a unique code or a link to claim the card.
- Activation: The recipient usually needs to activate the card by clicking on the link or entering the code on the retailer's website. This verifies ownership and links the card to the recipient's account.
- Redemption: Once activated, the recipient can use the card for purchases at the designated retailer. They typically enter the card's code or number at checkout, and the card's value is deducted from the total purchase.
- Balance Check: Many digital gift cards allow users to check their remaining balance online or through a mobile app.
- Security: Digital gift cards often have security measures in place, such as PINs or passwords, to protect the card's value from unauthorized use.
What are the benefits of a digital gift card?
Digital gift cards offer several advantages over their physical counterparts. Here are the key features:
- Instant delivery: Unlike physical gift cards, digital gift cards can be delivered instantly via email or SMS, making them perfect for last-minute gifting.
- No shipping costs: Eliminates the need for physical card production, packaging, and shipping, saving both time and money.
- Security: Digital gift cards often have additional security features like PINs or passwords, making them more secure than physical cards.
- Customization: Many platforms allow for customization of the gift card design, message, and even the card's value, offering a personalized touch.
- Trackability: Digital gift cards can be easily tracked and monitored, providing valuable data on redemption rates, customer behavior, and sales trends.
- Environmental friendliness: By eliminating the need for plastic cards, digital gift cards contribute to a reduced environmental impact.
- Integration with mobile wallets: Many digital gift cards can be added to mobile wallets for easy access and payment.
- Flexibility: Can be used for both online and in-store purchases, providing convenience to the recipient.
- Multiple delivery channels: Can be sent through various channels like email, SMS, or social media.
- Cost-effective: Often more cost-effective to distribute than physical gift cards due to the elimination of production and shipping costs.
How to send a digital gift card?
You send digital gift cards by buying it online and entering the recipient’s details. The recipient receives an email telling them they have been sent an digital gift card, which they then claim and activate. Delivery is virtually instantaneous, and the recipient can usually use the funds within minutes.
You simply follow these steps to send digital gift cards:
- Choose which digital gift card you wish to send to the recipient.
- Decide how much money you want to load onto the card.
- Enter the recipient’s details, including their name and email address.
- Pay for your digital gift card.
- The recipient receives an email that tells them they have been sent an digital gift card.
- The recipient follows the instructions in the email to claim and activate the card.
- The recipient gets an email with their digital gift card code.
- The recipient can browse the gift card provider’s website and choose what they would like to buy.
- The recipient can pay for the item using the code they received.
How to use a digital gift card?
Using a digital gift card is quite simple. Here's a general guide:
1. Online shopping
- Add items to cart: Choose the items you want to purchase and add them to your online shopping cart.
- Proceed to checkout: When you're ready to purchase, proceed to the checkout page.
- Enter gift card information: Look for a field labeled "Gift Card," "Gift Certificate," or "Promo Code." Enter the gift card number and PIN (if required).
- Apply gift card balance: The gift card balance will be applied to your purchase.
- Complete purchase: If the gift card balance doesn't cover the entire purchase, you can usually use a different payment method to cover the remaining amount.
2. In-store shopping
- Inform cashier: Let the cashier know you want to use a digital gift card for your purchase.
- Show the gift card: Display the digital gift card on your smartphone or tablet screen. Some stores may have a barcode or QR code to scan.
- Enter gift card information: The cashier will usually enter the gift card number and PIN (if required) into the store's system.
- Check balance: The cashier will check the available balance on the gift card.
- Complete purchase: If the gift card balance is insufficient, you can pay the remaining amount using another payment method.
Do digital gift cards expire?
Whether a digital gift card expires depends on the issuer and local regulations. Here’s what you should know:
- Issuer policies vary: Some digital gift cards come with an expiration date (commonly 1–5 years), while others remain valid indefinitely.
- Regulatory compliance: In certain countries or states, laws require gift cards to remain valid for a minimum number of years or not expire at all.
- Terms and conditions apply: Always review the card’s terms at the time of purchase or issuance to understand its validity and any associated fees.
- Reissuance options: If a digital card expires, some businesses may allow re-issuance or credit transfer, depending on the customer service policy.
