Gift cards and prepaid cards offer convenient and secure ways to purchase from specific stores or merchants. They are great presents, too, because they provide a certain amount of funds to let you buy whatever you please without worrying about cashing a personal check or carrying loads of cash. But can you exchange gift cards and prepaid cards for cash? Understanding the differences between these two cards will give you the answer. Here’s what you need to know:
What’s a prepaid card?
Prepaid cards are similar to debit cards issued by a credit card company or a financial institution. They are loaded or deposited with a certain amount of money and used for shopping or paying bills. The amount loaded onto the card is the credit limit. Some cards are exclusive to specific shops and may even include a rewards point system.
What’s a gift card?
A gift card is a type of stored-value card with a specific amount of money. Once you spend the card’s sum, you can no longer use it. Most gift cards have an expiration date, which is typically shorter than prepaid cards’, so you have to use them before they become invalid. However, if you need money fast or you don’t like them, you might want to exchange unused gift cards for cash.
The biggest difference
Gift cards and prepaid cards mainly differ in terms of their permanence. Prepaid cards can be reloaded, so they can be used indefinitely. On the other hand, gift cards can only be used until their value has been fully exhausted.
You can also exchange gift cards for cash using an app. Just make sure it’s developed by an established local company with a proven excellent track record of helping people sell their gift cards for naira. It should allow you to trade all kinds of gift cards including Amazon, Sephora, Nordstrom, Steam, and eBay, and the transaction must be completed instantly, usually within minutes.
Selling your gift card for cash is a safe and convenient way to get rid of it without letting it go to waste. It can give you some extra money, which you may use to reload a prepaid card, in case you own one.
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