Prepaid credit cards and store cards are popular gift ideas these past few years. Many people prefer to give these cards as presents especially during the holidays. If you’re planning to give one to a couple of friends and loved ones this year, which card should you choose?
Prepaid credit cards can be used much like a regular credit card. A prepaid card is recognized by a wide range of merchants that accept credit card payments. This is particularly true for prepaid credit cards that bear the VISA and MasterCard logos. Prepaid cards can also be used for payment at store locations and at online stores.
On the other hand, store cards do not offer the same kind of flexibility. A store card can only used at selected shops or from the same merchant that issued the card. Thus, if you plan to give a store gift card, see to it that the shop or merchant you choose is a favorite of the recipient.
Some prepaid credit cards can only be used until the last cent and other prepaid cards are reloadable. This means, you can choose whether to give a consumable or a reloadable prepaid card. If you choose the latter, see to it that the prepaid card carries a minimal set of fees. Some prepaid cards are notorious for having very expensive fees which can make maintenance a burden.
There are also store cards which can be re-used as long as the card is active while some store cards can only be used once. In the same way, you should be aware of the fees involved with the store card. How much will the bearer need to pay each year to keep it active or to prevent it from becoming deactivated.
You should also consider the recipient’s personality. What are his/her interests? What are his/her hobbies? For example, if he/she loves books, then you may already know that a book as present will surely make this person happy. However, you may not be sure as to what exact book to give. Thus, you may give a store card from a particular bookshop instead and let the bearer of the card choose the perfect book for him/her.
A store card adds a bit more of a personal touch to gift-giving because it shows that you have an idea about the gift the person wants. You are just giving the recipient a bit more freedom to choose a specific item closes to his/her heart.
Whether you choose to give a gift of a prepaid credit card or a store card, see to it that you purchase from a reliable card seller. If you want to purchase online, buy the gift card directly from the merchant or from a reputable gift card re-seller. Take note that fake prepaid cards and store cards do exist in the market and if you’re not careful, you could end up purchasing a card without any funds at all or which are unusable.
About the Author:
Tara Tiemann is the credit specialist for Go-Prepaid. Which is a resource site for people who want to live debt free! If you are on a budget, using a secured credit cards and merchandise credit cards can save you big money!