Zero Transfer Fees: A Guide to Sending Money via Gift Cards

Sending money internationally can sometimes be expensive and arduous. Between service fees, currency conversion, and bank processing times, many people turn to traditional remittance options, including wire transfers and money transfer operators like Western Union, only to find themselves frustrated. Enter a new, inexpensive alternative to sending money: sending money via gift cards, which often come with zero transfer fees, making them an appealing option for budget-conscious senders.

Generally regarded as gifts around the holidays or on special occasions like birthdays, gift cards are now being repurposed into digital and global remittance delivery services. What could be better than it costing you absolutely nothing in transfer fees? This method allows individuals to send money to friends, family members, or freelancers abroad, without incurring transaction costs.

This blog will explain how to transfer money using gift cards, the advantages they offer, which cards are best for this, and their pros and cons.

Read related blogs: The Future of Remittances: Sending Money with Gift Cards

How Sending Money via Gift Cards Works

Gift cards function as prepaid cards that can be used to purchase goods and services from specific retailers or online platforms. While they’re not cash in the strictest sense, they serve as digital currency within the retailer’s ecosystem or, in some cases, more broadly, wherever credit/debit cards are accepted.

• To send money via a gift card, here’s what typically happens:
• You buy a digital or physical gift card.
• You send the gift card code to the recipient.

The recipient uses the gift card to make purchases or resells it for cash on gift card marketplaces.

Platforms That Support Gift Card Money Transfers

Several online services and marketplaces have made this process seamless. Sites like Paxful, Remitly (via digital goods), GiftCash, and CardCash facilitate buying, selling, or converting gift cards internationally. Some even allow trading between users using gift card balances in exchange for local currency or cryptocurrencies.

Retailers like Amazon, Flipkart, and Walmart also offer gift cards that can be used in specific countries, making them viable tools for regional remittance.

Benefits of Using Gift Cards for Sending Money

Using gift cards to send money offers numerous benefits, including zero transfer fees, fast delivery, and broad accessibility. These make them a convenient and cost-effective alternative to traditional remittance methods.

Zero Transfer Fees

The biggest draw is the lack of transaction fees. Traditional wire transfers or services like PayPal can charge 3% to 10% of the amount sent. With gift cards, you pay for exactly what the recipient receives—there’s no cut between.

Example: Sending $100 through Western Union might result in only $90 reaching the recipient after fees. The recipient receives the full value with a $100 Amazon gift card—no deductions.

Speed of Transactions

Most gift card transfers, especially digital ones, are instantaneous. This contrasts with bank transfers, which can take 2–5 business days, particularly for cross-border payments. Digital gift cards can be emailed within seconds, making them ideal for urgent needs.

Accessibility and Convenience

Unlike bank accounts or mobile wallets, gift cards don’t require account verification or extensive documentation. This makes them especially useful for the unbanked population or individuals in developing regions with limited access to banking infrastructure.

Gift cards are also widely available online or at physical stores, making it easy for senders to purchase and distribute them. Physical gift cards can be mailed, while digital codes can be sent via email, messaging apps, or text.

Security Features

Gift card transactions are less vulnerable to bank fraud or hacking because they do not require the sender or recipient to share sensitive financial information. Thus, the risk of identity theft is significantly reduced.

Moreover, if a gift card is lost or stolen, it can often be cancelled and reissued if reported promptly, especially when registered.

Read related blog: How to Send Money Internationally Using Gift Cards

The Process of Sending Money Using Gift Cards

Sending money through gift cards is straightforward. The process includes selecting a card, loading funds, and delivering it to the recipient, who can then redeem or use it directly.

Choose a Platform or Retailer: Decide whether you want a general prepaid card (Visa/MasterCard) or a retailer-specific one (Amazon, Walmart, etc.).

Purchase the Gift Card: Buy the card online or in a store. Ensure it is accepted in the recipient’s country or on a platform where it can be resold.

Send the Gift Card: Share the gift card code via email, WhatsApp, or any secure communication channel. For physical cards, use reliable postal services.

Redemption or Resale: The recipient uses the card to shop online or sells it on a gift card exchange to convert it into local currency or a digital wallet balance.

Types of Gift Cards You Can Use for Sending Money

Several types of gift cards can be used to send money, each offering unique advantages based on flexibility, usability, and region-specific acceptance for digital and physical transfers.

Prepaid Visa/MasterCard Gift Cards

These are among the most versatile options. Since they operate on global payment networks (Visa/MasterCard), they can be used almost anywhere credit/debit cards are accepted. However, not all prepaid cards are international—check the terms before buying.

Some prepaid cards also allow ATM withdrawals, giving recipients access to actual cash.

Retailer-Specific Gift Cards

Retailer gift cards, such as those from Amazon, Flipkart, or Walmart, are often region-locked but still useful if the recipient is located in a country where the retailer operates. They are ideal for:

• Buying household goods
• Ordering food and essentials
• Purchasing electronics or apparel

Choose cards in the correct currency and region (e.g., Amazon. in for India, Amazon.mx for Mexico).

Where to Send Money Using Gift Cards

Gift card-based money transfers are increasingly popular in countries with high remittance inflows. Some of the most common destinations include:

• India: Flipkart and Amazon India gift cards are widely used.
• Mexico: Walmart and Amazon Mexico gift cards are accessible.
• Philippines: Digital gift cards from Lazada and prepaid Visa cards are standard.

Platforms like Paxful and LocalBitcoins also allow peer-to-peer trading of gift cards for cryptocurrency, which can then be cashed out locally.

Pros and Cons of Sending Money via Gift Cards

While sending money via gift cards offers benefits like zero fees and instant delivery, it also comes with limitations such as restricted usability, platform acceptance, and limited cash conversion options.

Pros

• Zero transfer fees mean the full amount goes to the recipient.
• Instant digital delivery ensures fast and reliable transfers.
• No bank account is needed, offering broad accessibility.
• Enhanced security reduces the risk of fraud or identity theft.

Cons

• Limited redemption options can restrict usage in some regions.
• Some platforms do not accept gift cards for transactions.
• Currency conversion or resale may result in value loss.
• Retailer-specific cards often cannot be exchanged for cash.

Conclusion

Gift cards are no longer just for holiday gifts—they’ve emerged as a viable, fast, and fee-free way to send money globally. They offer a compelling alternative to conventional remittance services with zero transfer fees, instant delivery, and ease of access.

Of course, gift cards are not a one-size-fits-all solution. They have limitations regarding redemption and conversion, and not every country or platform may support them. However, gift cards can be a valuable money transfer tool for the tech-savvy and those looking for cost-effective options.

Beem’s Send Now, Pay Later™ is built with top-tier security in mind. It is PCI-DSS compliant to prevent data leaks, which means your financial data is always protected during transactions. You can send money online without worrying about privacy or fraud. Beem is a trustworthy platform for anyone concerned about secure money transfers.

As financial technology evolves, methods like gift card-based transfers will likely become more mainstream. Whether you’re supporting family abroad,

FAQs: Zero Transfer Fee