Right now, I see two major types of rewards programs in the world. The first one is using gift cards, and the other one is virtual credit card (VCC). It’s not hard to find both of these methods used by various website owners that reward their users for completing tasks.
One might think that getting a $10 gift card is better than just getting $2 worth of points on your VCC, but there are actually many reasons why you should pick the second option when it comes to choosing between these two.
Gift Cards vs Virtual Cards: What Are Their Differences?
Some people get confused between virtual credit cards and gift cards. There is an easy way to understand the difference between a virtual credit card vs gift card.
Virtual credit cards are issued by many different companies including, VISA, MasterCard, Discover, American Express and Diner’s Club. Virtual credit cards can be used in place of a physical credit card for secure online purchases since these cards have an assigned account number that is linked to funds from either a checking or savings account. In addition to being used when making purchases on the internet, virtual credit cards are also popular among parents who want to monitor their teenager’s spending because they can add restrictions such as daily spending limits and restricting certain merchants.
Gift card is one of the most popular present during the holiday season. The recipients receive a card that is typically made of plastic and metal, where they can use it to purchase goods or services at an authorized establishment. To read more about gift cards visit our website (Link Below).
Gift cards are not credit cards; they are prepaid, debit like plastic cards that come pre-loaded with a dollar amount that is indicated on the front of the card. They are generally given by retailers for free as part of their customer appreciation promotions or through rewards programs for loyal customers. There are different types of gift cards available in the market which include store-specific gift cards, bank-issued Visa & MasterCard branded gift cards, restaurant & entertainment specific awards and general purpose reloadable prepaid cards.
Gift cards are not a fraud proof as they can be used by anyone who has been given the card or by thieves to purchase goods and services. In fact, stolen gift cards have become a major problem in the United States ($40 billion annually) with many people resorting to buying them from secondary markets such as eBay because they do not carry expiration dates nor any other restrictions. Some businesses have begun exploring the use of electronic gift certificates that can be delivered via email or SMS messages which would eliminate fraud issues associated with physical plastic gift cards yet successfully retain the benefits of giving both gifts and incentives to customers.
Merchant Restrictions (Gift Cards)
First off, let’s talk about merchant restrictions. Gift cards are very controlled products; they can only be used at certain stores because retailers have restrictions when it comes to what gift cards they can accept. You might find that a store will only accept physical gift cards, or that you have to spend over a certain amount of money in order to use the card. Also, you may be prevented from using more than one gift card at a time, and if this is the case, then your online purchases probably won’t count either since most websites require payment verification before handing out points anyways.
VCCs Are Easier To Get (And Spend)
Now let’s talk about another thing: virtual credit cards boast having an extremely low purchase threshold ($0), while some gift cards may need $1-5 just to activate them. If you’re not paying attention, that can be a huge loss.
VCCs Don’t Have Monthly Fees (Or Any At All)
Furthermore, you won’t have to pay any monthly fees with vccs unlike most gift cards which are expected to have an inactivity fee after so much time has passed with no activity on the card. Also keep in mind that some cards will also expire, so if you want to complete all of your offers before it’s too late, then you’ll need to have access to one in order to do so.
Get Paid For Everything!
Lastly, another reason why you should use vccs is because they give points for pretty much everything. That means you’ll be able to gain points for purchases, donations, withdrawals and anything else which might take place on your card. However, as mentioned before, keeping track of every little purchase is a necessity or else you may risk losing those precious points due to inactivity.
You can also check the 10 Popular Gift Cards In USA and Canada