Gift cards have become an increasingly popular gift option in recent years. According to the National Retail Federation’s annual survey, gift card spending reached an estimated $160 billion in the United States in 2020. With so many gift cards being purchased each year, an important question arises – does it matter where you buy gift cards?
There are a few factors to consider when deciding where to purchase gift cards:
- Price – Some retailers may offer discounted gift cards or bonus offers if you buy directly from them.
- Convenience – Buying online, in-store, or through a gift card mall each has its own pros and cons.
- Selection – The range of gift card options may vary between retailers, grocery stores, and third-party gift card sellers.
- Expiration and fees – Check the expiration date and fees associated with gift cards at different sellers.
- Scams – Be wary of discounted gift cards sold by unknown third parties online.
Looking at each of these factors can help determine the best place for you to shop for gift cards for your intended recipient.
Price Comparison
One of the biggest factors to consider is price. Retailers often offer sales, bulk discounts, or bonus gift cards when you purchase directly from them. For example, Starbucks often offers a free $5 or $10 gift card when you buy $20 or $30 in gift cards online. This allows you to stretch your gift card budget further when giving cards.
Grocery stores and other retailers like Walgreens also offer deals around the holidays. You may get a small discount on a $50 restaurant or retailer gift card or a bonus card when buying multiples. Discounts generally range from 5-10% off face value.
Third party gift card sellers like GiftCardMall.com or GiftCardSpread.com offer discounted gift cards year round. The discounts can be more substantial than retailer deals, often 10-20% off the face value. However, there are some risks buying heavily discounted gift cards that we’ll cover later.
Here are some example gift card deals:
| Gift Card | Face Value | Discounted Price | Seller |
|---|---|---|---|
| Target | $50 | $40 | GiftCardSpread.com |
| Starbucks | $25 | $25 + Free $5 card | Starbucks.com |
| Nike | $100 | $80 | GiftCardMall.com |
As you can see, buying directly from major brands like Starbucks gets you bonus freebies. But you can save more per dollar spent going through gift card resellers.
Convenience
The next consideration is convenience. There are several ways to buy gift cards – in person at retailers, online, or through aggregated gift card sites.
**In person** – Going to an individual retailer or grocery store has the benefit of getting cards right away for upcoming gifts. However, your options may be limited. A grocery store may only carry the most popular restaurant and retailer cards. Smaller brands likely won’t be available.
**Online** – Buying e-gift cards directly through brand websites like Nike.com or Amazon.com gives you access to the full range of their own gift cards. The e-gift cards are delivered to your email instantly. However, you still have limited brand selection buying cards one site at a time.
**Gift card sites** – Aggregator sites like GiftCardMall.com and GiftCards.com allow you to buy both physical and e-gift cards from hundreds of top brands in one place. This provides a one-stop shop experience. The tradeoff is you won’t necessarily get every single brand you may want. Obscure local retailers likely won’t be available.
For maximum convenience, buying from a leading gift card marketplace provides the widest selection. You also don’t need to go store-to-store when you can browse cards from your laptop or phone anytime.
Gift Card Selection
Speaking of selection, the number of gift card brands available can also guide where you make your gift card purchases.
Retailers like Walmart and Target offer gift cards primarily for their own store, along with some restaurant and entertainment cards. A typical selection may include:
- Store gift cards – Walmart, Target, Amazon, etc.
- Restaurant cards – Starbucks, Olive Garden, Domino’s
- Entertainment – AMC, Regal, Netflix
- Miscellaneous – Google Play, Xbox, Spotify, etc.
Grocery stores have an even more limited selection, focusing on the most popular retail and restaurant chains. Specialty, local, or niche gift cards are unlikely to be found.
Meanwhile, the top gift card marketplaces include hundreds of options from both national and local brands. For example:
- Clothing – Nike, H&M, Zara, lululemon, etc.
- Department stores – Nordstrom, Macy’s, Bloomingdale’s, Neiman Marcus
- Specialty – Bass Pro Shops, Cabela’s, REI, Bed Bath & Beyond
- Travel – Airbnb, Delta, Hilton, Carnival Cruise Line
- Local restaurants, experiences, etc.
This extensive selection provides options for all gift recipients. You can find cards for specialty hobbies, local businesses, travel, and mainstream brands all in one website or app.
Expiration and Fees
Another key point of comparison between gift card sellers is their expiration policies and fees.
Gift cards purchased directly from major retailers and restaurants typically carry no fees. The balance remains valid for at least a year, sometimes longer. Smaller local businesses may have shorter 6-12 month expiration dates to note.
For third party discounted gift cards, you need to pay closer attention to the fine print. Discounted gift cards often come with shorter expiration dates, sometimes as little as 3-6 months. They may also charge purchase or dormancy fees if the card sits unused for a period of time.
Be sure to check:
- Purchase fee – Upfront cost charged on the gift card
- Expiration – The date the card becomes invalid if unused
- Dormancy fees – Charges if card is inactive after a set time period
Having to pay an extra $5 purchase fee plus 5% monthly dormancy fees minimizes any upfront discount. Pay attention to the terms before buying discounted gift cards.
Avoiding Gift Card Scams
The final consideration is avoiding gift card scams. Buying gift cards from unknown, sketchy websites opens you up to potential fraud.
Some key warning signs include:
- Unbelievable discounts – 70%, 80%, or 90% off face value
- Requests for payment by wire transfer or prepaid card
- Poor website design and layout
- No physical address for the company
Discounted gift cards aren’t necessarily a scam. But prices that seem too good to be true often are. Only use well-known marketplaces with an established reputation. Or buy directly from the brand’s website when possible.
Weighing the Pros and Cons
Taking all these factors together, here are some general guidelines on the best places to purchase gift cards:
- Buy directly from brands when possible to avoid fees and maximize value through bonuses and promotions.
- Use an aggregator gift card marketplace like GiftCards.com for the best overall convenience and brand selection.
- Only buy heavily discounted gift cards from reputable dealers, and watch out for fees that diminish value.
- Avoid unknown sellers and unbelievable discounts which can signal gift card scams.
There’s no definitive “right” place to buy every gift card. It often comes down to personal priorities – do you want maximum value, the broadest selection, or just grab-and-go convenience?
Evaluate your options based on the occasion, recipient, pricing, and brand availability to choose the best source. With a little forethought, you can find the perfect gift card no matter where you decide to shop.
Conclusion
Gift cards remain a go-to gift giving option for their convenience and flexibility. However, where you buy gift cards can impact the price paid, selection available, and potential expiration or fees. Retailers, grocery stores, and third party sellers each have their own pros and cons to weigh. Avoiding gift card scams also remains important when looking for deals. With a little research and comparison shopping, you can find the ideal gift cards from a trustworthy seller that brings joy to everyone on your gift list.
