How to Use Gift Cards for Online Shopping: A Step-by-Step Guide

Gift cards have become a popular choice for online shopping, offering flexibility and convenience. To effectively use gift cards online, you'll want to treat them like credit or debit cards during checkout. This simple strategy ensures you can easily enjoy your purchases without any hassle.

Understanding the various types of gift cards, including eGift cards, can enhance your shopping experience. Many retailers accept these electronic gift cards, which allow for quick and seamless transactions. With a little knowledge, you can maximize the value of your gift cards and make the most out of every shopping trip.

Embracing gift cards opens up a world of options and can enhance your online shopping journey. Knowing how to redeem them correctly will enable you to shop with confidence and ease.

Key Takeaways

• Gift cards should be treated as traditional credit or debit cards during online checkout.

• eGift cards offer convenience and quick transactions at many retailers.

• Understanding your gift card balance helps maximize its value while shopping.

Gift cards are a popular and versatile gift for pretty much any occasion, but how much do you really know about the plastic cards rattling around in your wallet?

Understanding Gift Cards

Gift cards are versatile tools that enhance your online shopping experience. They come in various types, each with distinct features and benefits tailored to fit your needs. But if you want to make the most out of your gift cards to save money, give awesome gifts, and all of the other great things the right gift card can do, you’ll need to learn the lingo. 

So here’s a quick crash course on some of the vocab you’ll see pop up on this blog and in the larger world of gift card aficionados.

Types of Gift Cards

• Traditional Gift Cards: These are physical cards, often usable in specific stores or restaurants.

• Electronic Gift Cards (eGift cards): These digital versions can be purchased and received via email or mobile apps and are easily used for online shopping.

• Open-loop Gift Cards: Issued by financial institutions, they can be used anywhere that accepts their card network (like Visa or Mastercard).

• Closed-loop Gift Cards: Usable only at specific retailers or groups of retailers.

Understanding Open-Loop and Closed-Loop Gift Cards

Using open-loop gift cards, like Visa gift cards, is straightforward. 

Upon purchase, you receive a 16-digit card number, expiration date, and security code. 

When shopping online, select the option to pay with a credit or debit card. Input the card number, expiration date, and CVV code during checkout. This process ensures a seamless transaction without needing a physical card. Virtual Visa gift cards follow the same procedure, offering a convenient option for various online purchases.

In contrast, closed-loop gift cards are tied to a specific retailer or brand. This is a more old school type of gift card, with roots reaching all the way back to the earliest version of gift cards in history (department store gift certificates – any surprise there?) 

These cards can only be used at designated locations or online stores, making them less versatile than open-loop options. 

However, they’re not without their benefits. Closed-loop gift cards often come with perks like store-specific discounts or promotions, which can enhance the shopping experience. When using a closed-loop gift card, simply enter the card number and any required information during checkout at the retailer's website. While these cards may limit where you can shop, their targeted benefits can make them an attractive choice for fans of a particular brand.

Benefits of Using Gift Cards for Online Shopping

Using gift cards for online shopping offers several advantages. Firstly, they provide a way to control your spending, allowing you to pre-load a specific amount. This can help you avoid overspending on impulse purchases.

Moreover, gift cards, especially from popular retailers, often come with promotional offers or discounts, giving you additional value. They also serve as great gifting options. If you're unsure what someone wants, a gift card allows them to choose their desired products. Ultimately, using gift cards enhances flexibility and ease in your online shopping experience.

Savvy shoppers can use gift cards as a part of a budgeting strategy, particularly when they understand how to score discount gift cards or gift cards with cash back and other rewards for reputable sites. 

Maximizing Your Gift Card Usage

To make the most of your gift cards, focus on finding great deals and avoiding common pitfalls. Being strategic about where and how you use these cards can significantly enhance their value.

Finding and Securing Gift Card Deals

Start by exploring platforms that offer discount gift cards. Websites like Gift Card Granny provide a variety of options at reduced prices. You can find gift cards for popular retailers at discounts ranging from 5% to 20%.

Additionally, keep an eye out for seasonal sales or promotions that allow you to purchase gift cards with bonus offers. For example, some retailers may offer retail gift cards with additional credits when purchased during specific promotional periods.

Signing up for newsletters from your favorite retailers can also keep you informed about exclusive offers. This way, you'll be among the first to know when new gift card deals become available.

Avoiding Common Gift Card Pitfalls

It's essential to remain vigilant when using gift cards to prevent losing money. 

First, always check the expiration dates on your cards. Some gift cards may lose value or become inactive after a certain period.

Also, be cautious when sharing your card details. Scammers often target unsuspecting consumers, particularly online. Avoid responding to unsolicited requests for your card information.

And finally, always read the fine print. Certain gift cards have restrictions on what they can be used for, especially when it comes to discount gift cards. Familiarize yourself with any limitations to ensure your shopping experience goes the way you’re planning for it to go.

Redeeming Traditional Gift Cards Online

When you want to use gift cards for online shopping, it's essential to understand the redemption process and how to troubleshoot any potential issues. Here's a clear guide to help you navigate using both physical and eGift cards effectively.

Step-by-Step Redemption Process

1. Choose Your Store: Start by selecting the online store where you want to shop. Each retailer may have a slightly different process for redeeming gift cards.

2. Payment Method: When you're ready to check out, look for the payment section. Choose the option to pay with a gift card or credit/debit card.

3. Enter Card Details: If using a prepaid Visa or a virtual Visa gift card, you'll typically need to enter:

• The 16-digit card number

• The expiration date

• The 3-digit CVV code located on the back of the card

Troubleshooting Common Issues

If you encounter problems redeeming your gift card, you might see some errors pop up. It happens. Here are a few common issues you’ll see when redeeming gift cards online, and what to do about them:

• Card Amount Too Low: Ensure your gift card balance covers the total cost. If not, you may need to pay the difference with another payment method.

• Invalid Card Information: Double-check the details you entered. It's easy to mistype the card number or CVV code.

• Card Not Accepted: Some websites might not accept certain types of gift cards. If your eGift card isn't working, verify that it's valid for online purchases at that retailer.

• Expired Card: If your card has expired, you won't be able to use it, so check the expiration date before trying to redeem it.

Say goodbye to gift cards that lock you into boring designs and can only be redeemed one way. PerfectGift+ makes it easier than ever to give the perfect gift every single time with the ultimate flexible gift card. 

A New Era for Online Gift Cards

Gift cards might seem like the same old thing that have been around for decades, but there have been some big innovations in the gift card world over the last couple of years… particularly, if you’re a little tech savvy.

Luckily, you don’t have to be an IT expert or certified tech bro in order to take advantage of the latest cutting-edge advancements in gifting technology. Here’s what you should know.

Gift cards are awesome. They make it easy to budget, and they’re repeatedly listed as one of the most-wanted gifts for adults in America… not just around the holidays, but all year long. They’re flexible and easy to use, so it’s no wonder why so many people appreciate receiving a little extra cash to use at their favorite stores or websites. 

But traditional gift cards do have some drawbacks. Namely:

1. Lots of people worry they come across as impersonal, and

2. If you get a gift card for a brand you don’t like, you’re kind of out of luck

That’s where next gen gift card solutions like Perfect Gift come into play. We heard your complaints about gift cards, and we knew there had to be a better way. That’s why we make it easy to fix those problems with flexible gift card solutions like our customizable Visa gift cards, which allow you to take any memory and turn it into an open-loop gift card that prints fast and shows how much you care. 

Or, for even more flexibility, you can build the ultimate physical or digital gift card with PerfectGift+, which lets your recipient choose from any brand in our catalog (there are thousands!) or cash out the balance using a method of their choice. 

Using gift cards for online shopping can be kind of finicky, but there are simple solutions to make the process easier. 

By following these steps and solutions and checking out the next generation of gift cards for online shopping, you can ensure a smoother experience when using your gift cards for online purchases. Good luck!

Originally published 11/5/24. Last updated 1/8/26.