Birthdays, Easter, Christmas, graduations… all of these things involve gifts nowadays. Gift cards are a unique and fun method that many credit card companies have begun offering as rewards for their customers. Essentially, there are two main ways that credit card customers can benefit from gift cards.
The first way that we’re explaining here is for credit card customers to simply buy gift cards simply by using their own credit card. Some of these are terrific value: many credit card reward programs will actually offer premium rewards of almost three times the normal conversion value for purchases. Some offer even more!
The other way gift cards are often utilized with points is this: by transferring your points to purchase gift cards.
The main reason why gift cards can be so valuable to reward programs is marketing: they can be so valuable due to the additional marketing they provide to consumers. The gift card means that both the customer, and the person that they bought the card for, will both be using the services for that store. The store then in turn rewards the credit card company and various affiliates.
The last benefit, though, is that most people generally really love gift cards. You not only receive cash for shopping in some place that you love to shop, but you also know that your Aunt Emma isn’t buying you what she thinks you want, rather than what you actually want. There’s nothing worse than getting a gift that you really didn’t want from some well-meaning relative, and then having to pretend that you really love it. That’s really the main benefit of gift cards: the simple fact that people really love them because it can mean that they’ll get the gifts they really want rather than something they really didn’t want.