How Exactly Does a Virtual Gift Card Work?

A virtual gift card is a digital equivalent to a traditional plastic gift card. It functions as an electronic voucher that can be purchased and sent online. These digital cards contain a unique code or link, allowing them to be redeemed for goods or services. They can be used for both online and in-store purchases.

Obtaining a Virtual Gift Card

Acquiring a virtual gift card involves an online purchase process. These cards are available directly from a retailer’s website, large online marketplaces, or specialized third-party gift card platforms. During purchase, you specify the desired value and provide the recipient’s email address or phone number for delivery. The sender’s details are also collected.

Virtual gift cards are delivered digitally, eliminating the need for physical shipping. The most common delivery method is email, where the recipient receives an email containing the card’s details and redemption instructions. Other delivery options include text message or a direct link accessible through a mobile app. This electronic delivery allows for near-instant receipt, making them a practical choice for last-minute gifting.

Using a Virtual Gift Card

Redeeming a virtual gift card for online purchases involves entering specific card details at checkout. When completing a transaction on a merchant’s website, locate a field for gift cards, promotional codes, or a credit/debit card payment option. Input the virtual card’s unique number, security code (CVV), and an expiration date if provided. The website’s system then applies the card’s balance to your purchase.

For in-store use, virtual gift cards can be redeemed through a mobile device or a printed copy. Many virtual cards, especially those issued by major payment networks like Visa or Mastercard, can be added to digital wallets such as Apple Pay, Google Pay, or Samsung Pay. Once added, you can use your phone to make contactless payments at terminals that accept these mobile wallet systems. Alternatively, some retailers allow you to present the gift card details directly from your phone screen or a printed sheet for the cashier to scan or manually enter. If the purchase exceeds the card’s balance, you can pay the remaining amount using another payment method.

Understanding Virtual Gift Card Features

Virtual gift cards come with various features that influence their usability and longevity. Checking the remaining balance on a card is a common need, and most issuers provide several methods for this. You can check the balance online by visiting the issuer’s or retailer’s website and entering the card number and a security PIN. Many gift cards also include a toll-free customer service number on their digital or physical representation that you can call for balance inquiries. Some retailers also allow you to inquire about the balance directly with a cashier in-store.

Expiration dates are regulated by federal law, the CARD Act, which mandates that gift cards cannot expire within five years from the date of issuance. Some state laws offer greater protections, prohibiting expiration dates entirely or extending the validity period beyond five years. Dormancy or inactivity fees are also regulated by federal law, generally prohibited unless there has been no activity on the card for at least one year and the fee policy is clearly disclosed. Most virtual gift cards are not reloadable, meaning their value is fixed after purchase, though some general-purpose prepaid cards may offer reload options. It is important to review the terms and conditions provided with each specific virtual gift card to understand its unique expiration, fee, and reloadability policies.