What is the difference between gift cards and stored-value cards?
Both are pre-paid value cards. Gift cards are typically pre-denominated and reflect the card value on the front of the gift card. Stored-value cards are more generic in nature and do not typically reflect the card value visibly on the card. Additionally, Stored-value cards have their values set dynamically at the point of sale. While gift cards serve as a state-of-the art gift-giving solution, stored-value cards serve great as a state-of-the art mechanism for issuing store credits, avoiding ever having to issue any actual cash back to the customer. Additionally, an element of loyalty is gained as the customer now has an additional incentive to return to the merchant for subsequent visits.
