Can you use visa gift cards everywhere

Prepaid cards and gift cards are both pieces of plastic that can be used to make purchases. They make popular presents as well: A versatile way to give a recipient the funds to buy whatever they like that seems safer and a touch classier than a wad of cash, and more convenient than a personal check. The biggest difference between the two reflects their permanence: prepaid cards can be reloaded and used indefinitely, while gift cards can generally only be used until the dollar amount on them is exhausted.

Key Takeaways

• Both prepaid cards and gift cards are loaded with a set amount of money.
• Prepaid cards, a type of debit card issued by a bank or credit card company, can be used to make purchases, pay bills, or get cash from ATMs.
• Gift cards are mainly for use at a particular retailer, though some credit card companies issue them too; they traditionally can only be used to buy items.
• Unlike most gift cards, prepaid cards can be used indefinitely, as long as money is continually added to the card.

What is a Prepaid Card?

Prepaid cards are technically a type of debit card. Issued by a financial institution or credit card company—Visa, MasterCard, and Discover all offer them—they are deposited or "loaded" with a certain amount of money. They then can be used in person or online to purchase items or pay bills. They can also be used at ATMs to withdraw cash.

Just like regular credit cards, prepaid credit cards have a number and an expiration date printed on the front or back, and they generally can be used in the same places. The amount of money deposited or "loaded" onto the card represents the card's credit limit—that is, how much can be charged on it. Once the balance on the card had been exhausted, the card is worthless, unless more funds are deposited on it. In fact, a prepaid debit card can be used repeatedly, so long as the cardholder keeps adding money to the card. It may carry a monthly fee, however.

Although the terms are often used interchangeably, these prepaid cards are not the same as prepaid credit cards. Requiring an application, a credit check, and approval from the issuer, a prepaid credit card functions like a regular credit card: the cardholder can maintain an outstanding balance, receives monthly statements, etc. The key difference is that approval for the card is contingent on a security deposit—collateral for the issuer, in case the cardholder falls delinquent in their payments.

Prepaid cards are technically prepaid debit cards: When used in a transaction, the money on them is subtracted right away, and not put on a balance to be paid later.

What is a Gift Card?

A gift card is also a type of stored value card loaded with funds for future discretionary use. Only it contains a specific amount of money. Once this sum is spent down, the card can no longer be used. Gift cards also have expiration dates, which are often much shorter than that of prepaid cards.

Gift cards can be purchased in several different formats. The most familiar type is what's technically known as a closed loop card: It is good only at a particular merchant or certain retailer and bears that outfit's name and logo. Some retail groups will allow the same gift card to be used at any of their affiliated stores.

Gift cards began with specific stores. Now, however, many of the major charge or credit card issuers, like American Express, Visa, Discover, and MasterCard, are also offering gift cards, good anywhere the regular plastic is accepted. Known as open-loop cards, these are most easily confused with prepaid debit cards, especially since some of them are reloadable as well. These cards may carry a one-time activation fee.

Prepaid vs. Gift CardsFeaturesPrepaid Debit CardRetail Gift CardNetwork Branded (Visa/Mastercard)YesNoMonthly FeesUsuallyNoAccepted at most merchantsYesNoComes in Pre-set denominationsNoYesReloadableYesNo

The Visa debit gift card is a convenient way to shop. It is widely accepted and can be used in lieu of cash. In fact there are very few places that do not accept the card. It’s also important to understand how to use the card and fees incurred.

Shop Anywhere

The Visa debit gift card can be used at any location accepting Visa debit cards. It can be used in stores, gas stations, restaurants, doctor’s offices and online sites… nearly everywhere. There are literally millions of merchants worldwide who will accept the Visa debit card. The only locations that will not accept the card are online gambling sites, PayPal, money wire transfer services (like Western Union), and adult websites. It cannot be used for recurring bill payment.

ATM Use

Only Visa gift cards bearing the Cirrus and/or Interlink logos on the card can be used for ATM transactions. If your card has those logos, you can use it at any Cirrus/Interlink ATM and withdraw a maximum of $150 per day or the full balance of the card whichever is less. These cards do require Personal Identification Numbers (PINs) and you will receive yours upon card activation/registration. You can also request cash back from merchants displaying those logos; however, the fee for this transaction is $3.25. Additionally, there is a $.35 fee for all signature-based transactions and a $.50 fee for all PIN-based transactions.

Card Activation

You must activate the card prior to use. To do this, check the website at Giftcards.com (see Resources) or call the toll-free number on the back of the card. You must provide the 16-digit card number shown on the front and the three-digit Card Verification Number on the back of the card. Finally, you must enter the activation code. This number should be provided to you by the person or company that gave you the card. You cannot activate the card without this number, and for security reasons, neither the website nor phone operators will provide it.

PINs and Security

Unlike the Visa ATM cards, Visa debit gift cards do not have Personal Identification Numbers. If you are prompted for a PIN at checkout when using the Visa debit gift card, the merchant has incorrectly entered the type of card. Request that he run the card as a credit card thus eliminating the PIN request. If the card is lost or stolen, call 1-877-944-3822 and provide as much detailed information as possible. Any unused funds can be transferred to a new card and issued to you. There is a $5 fee for this service.

Fees and Expiration

The Visa debit gift card carries a $2.50-per-month fee. However, that fee is waived for the first six months. If you opt to close the account and have remaining funds returned, the fee is $7. Using the card internationally incurs a 3 percent charge and $2 flat fee. The card expires 24 months after its purchase date, and any remaining balance can be transferred to a new card upon expiration (if the balance is greater than $25) or refunded to the card holder as a check upon written request. As fees are incurred, it’s wise to use the entire balance prior to expiration.

Checking the Balance

Know your balance before using the card to avoid being declined. The store merchant cannot provide that information to you. You can find out your card’s balance by calling the toll-free number on the card or by visiting Giftcards.com (see Resources). Your card might be declined for telephone or online purchases despite having an adequate balance. For security reasons, the card holder’s address and billing address must match. If not, the card will be declined. You can update your account online to avoid this occurrence.

References

• GiftCards.com ? FAQs
• Discover. "What Is a Credit Card Number?" Accessed March 13, 2020.
• Federal Trade Commission. "What to Know About the New Credit and Debit Chip Cards." Accessed March 13, 2020.
• Discover. "Surprising Reasons Your Credit Card Won't Swipe." Accessed March 13, 2020.
• National Center for Biotechnology Information. "Design, Fabrication and Characterization of Computer Generated Holograms for Anti-Counterfeiting Applications Using OAM Beams As Light Decoders." Accessed March 13, 2020.
• Experian. "What Is a CVV Number on a Credit Card?" Accessed March 13, 2020.

Writer Bio

Ann Deiterich has been a writer since 1984 in business-to-business communications, specializing in TQM, business/financial topics, office management and production efficiency. As an environmental proponent, nature and science are her areas of interest. Deiterich holds a Bachelor of Arts in English from Albright college and has three expert rating certifications including Grammar, Words/Phrases and Advertising Skills.

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