The advancement of money transfer methods has hit a new benchmark due to conventional bank-based solutions and contemporary digital payment systems. To send money with gift cards is becoming increasingly popular, as gift cards have emerged as a preferred method to transfer funds, particularly among virtual cards. Gift cards vs traditional methods is now a key comparison point as users explore faster, more flexible ways to move money.
The combination of speedy payment delivery, flexible adaptability, and reduced expenses makes gift cards popular. Speed becomes a critical consideration in money transfers, yet how does the gift card approach compare with standard banking wires, remittance services, and peer-to-peer payment technology?
The blog will examine gift card transfer speeds relative to traditional payment systems to help you select an appropriate money transfer method.
How Gift Cards Work for Sending Money
Gift cards offer a quick and convenient way to send money, allowing recipients to use funds instantly. This method is especially popular for smaller transactions or specific purchases, providing a faster alternative to traditional transfers.
Prepaid Visa or MasterCard Gift Cards – These act like debit cards and can be used anywhere that accepts Visa or MasterCard.
Retailer-Specific Gift Cards—cards such as Amazon, Flipkart, or Walmart gift cards that are usable only within their respective platforms.
The process of sending a gift card typically includes:
- Purchasing the gift card online or in-store.
- Enter the recipient’s email for digital cards or mailing address for physical cards.
- Gift cards can be sent and redeemed in two ways: electronically, where the recipient receives a code via email, or physically, via a card that can be used for online or in-store purchases.
A key distinction lies in physical vs. virtual gift cards. Virtual cards are sent via email instantly, while physical ones take time to ship, delaying usability.
Read related blogs: Why You Should Consider Sending Money with Gift Cards
Traditional Money Transfer Methods and Their Speed
Traditional money transfer methods, such as bank transfers and remittance services, offer reliable but often slower options than modern alternatives.
1. Bank Transfers
Bank transfers are the go-to for many people sending money domestically or internationally. The process typically involves:
Bank transfers involve transferring funds between accounts using a bank’s secure network. For domestic transfers, the sender provides the recipient’s account details. International transfers require additional steps like currency conversion and often involve intermediaries, making the process more complex.
Domestic bank transfers typically take 1–3 business days, depending on the bank and payment method. International transfers can take longer, up to 5 business days, due to factors like time zones, currency conversions, and intermediary banks involved.
2. Money Transfer Services (Western Union, MoneyGram)
These services are designed for fast transfers, especially internationally. Some offer instant cash pickup, while others deposit directly into the recipient’s bank account.
Western Union and MoneyGram are widely used global services that allow users to send money quickly to recipients in various countries.
Speed comparison: Transfers usually take 1–2 days, but some services offer near-instant transfers if users are willing to pay additional fees for expedited delivery.
Processing delays and availability of cash pickup vs. bank deposit: Cash pickups are generally faster, while bank deposits may face delays due to bank hours, weekends, or verification procedures.
Faster transfers usually incur higher fees.
3. Peer-to-Peer Payment Services (PayPal, Venmo, Cash App)
P2P services enable users to send money through apps using linked cards or bank accounts.
Instant Transfers:
Available for a small fee: Users can opt for instant money transfers, usually completed within minutes, by paying a nominal fee that the service provider charges.
Standard Transfers:
Typically, 1–3 business days: If users choose the free option, the transfer usually takes one to three business days to reach the recipient’s account.
P2P apps often don’t support cross-border payments or multiple currencies, limiting their effectiveness for international money transfers.
These platforms are limited by region and currency, often only supporting transfers within the same country.
Read related blogs: What Are the Best Gift Cards for International Money Transfers?
The Speed of Sending Money with Gift Cards
1. Instant or Near-Instant Delivery
One of the most significant advantages of virtual gift cards is their instant delivery. Once purchased, they’re sent immediately to the recipient’s email and can often be used within minutes.
Unlike bank transfers or physical cash, the recipient doesn’t have to wait for funds to clear or pick up money in person.
2. Prepaid Visa/MasterCard Gift Cards
Prepaid Visa or MasterCard gift cards can be activated shortly after purchase, sometimes immediately.
These cards are ready for use almost instantly after purchase, eliminating the delays often associated with traditional financial transactions or bank approvals.
Prepaid cards are versatile, allowing recipients to shop online or in physical stores wherever Visa or MasterCard is accepted, adding to their convenience and usefulness.
Unlike traditional transfers that involve paperwork and verification, prepaid gift cards skip complex procedures, enabling a quicker and more user-friendly transfer experience.
This process is simpler and faster than bank verification and other administrative steps in traditional transfers.
3. Retailer-Specific Gift Cards (Amazon, Flipkart, etc.)
Digital versions of retailer-specific gift cards (like Amazon or Flipkart) are delivered almost instantly.
Once redeemed, funds are added to the user’s account and can be used immediately for online purchases. This makes them perfect for gift-giving or urgent needs.
Key Factors Impacting Speed in Gift Card Transfers
Several factors, such as delivery time, recipient’s ability to redeem, and country-specific restrictions, can impact the speed of gift card transfers.
1. Delivery Time for Physical Gift Cards
Physical gift cards can take 2–7 business days to arrive by mail, depending on the delivery method and location. Express shipping options are available, but can increase costs.
Tip: Opt for digital gift cards for instant delivery if the recipient doesn’t need a physical card.
2. Recipient’s Ability to Redeem
The process is seamless if the recipient knows how to redeem the gift card and can do it immediately. But sometimes, a learning curve or verification process can cause delays.
Digital gift cards often come with instructions and direct links to redeem, making it easier to use quickly.
3. Country-Specific Restrictions
Some gift cards cannot be used outside certain countries or regions due to currency, platform, or vendor restrictions.
Before sending, ensure:
- The gift card is accepted in the recipient’s country.
- The retailer or card network supports international use.
Speed Comparison: Gift Cards vs Traditional Methods
1. Bank Transfers vs. Gift Cards
| Method | Delivery Speed |
| Bank Transfers | 1–5 business days |
| Virtual Gift Cards | Instant |
While bank transfers are reliable, they are rarely instant. Virtual gift cards, predominantly prepaid Visa or MasterCard, are nearly immediate once purchased.
Use Case Tip: Use gift cards for quick personal transfers. Bank transfers are better for larger, recurring, or institutional payments.
2. Money Transfer Services vs. Gift Cards
Money transfer services can offer fast options (sometimes within minutes), but they often come with higher fees.
Services like Western Union provide rapid transfers, but often at high costs. In contrast, virtual gift cards deliver funds instantly at lower or no fees, offering a reliable speed advantage.
For sending small amounts or targeting specific purchases, gift cards are faster and more convenient than remittance services, which may involve identity verification, currency exchange, and higher service charges.
3. Peer-to-Peer Payments vs. Gift Cards
P2P apps offer near-instant transfers, especially when the sender and receiver are on the same platform.
While P2P payments are fast domestically, virtual gift cards offer quicker global delivery without banking delays or currency conversion issues.
Many P2P services need regional access and bank links, limiting usability, whereas gift cards can be sent globally and used without traditional banking infrastructure.
Read more: Gift Cards vs Traditional Money Transfer Services: A Comparison
Pros and Cons of Speed: Gift Cards vs Traditional Methods
When comparing money transfer options, speed is a crucial factor. Both gift cards and traditional methods offer unique advantages and limitations depending on how quickly funds need to reach recipients.
1. Pros of Gift Cards
- Virtual gift cards offer instant delivery, making them ideal for fast transactions.
- No banking access or identity verification is required to send or receive.
- Funds can be used immediately for online shopping or retail purchases.
2. Cons of Gift Cards
- Physical gift cards take time to ship, delaying access.
- Some cards can’t be redeemed in all countries or platforms.
- Sending to the wrong recipient may result in loss or misuse.
3. Pros of Traditional Methods
- Backed by reliable infrastructure ensuring secure, trackable transactions.
- Suitable for sending large amounts and handling multiple currencies.
- Offers flexible delivery options, including cash pickups and direct deposits.
4. Cons of Traditional Methods
- Transfers can take days, especially for international recipients.
- Faster transfer speeds often come with higher service fees.
- Requires more steps, like ID checks and account linking.
Conclusion: How Fast Can You Send Money with Gift Cards
Virtual gift cards are delivered instantly via email or apps, allowing recipients immediate access to funds. This is significantly faster than bank transfers or money services, which often take several days. When choosing between gift cards and traditional transfers, consider how quickly the money is needed, the fees involved, and how the recipient can access and use the funds in their location.
Beem is your go-to app for quick, easy money transfers—no bank account required. Perfect for emergencies or everyday payments, it makes sending money fast and stress-free. Use Send Now, Pay Later™ to send funds instantly and settle up later.
Gift cards are an efficient and affordable way to send money quickly, especially for international use. They bypass delays and high fees commonly associated with bank wires and remittance platforms. Choose wisely based on your specific needs. Don’t underestimate the power and speed of a gift card for quick, convenient, and often low-cost transfers.
