How Gift Cards Help People Save Money on International Remittances

Overseas remittances are essential to sustaining families, financing education, and keeping communities alive worldwide. Gift cards help people save money by offering a low-cost alternative to traditional transfers. Transferring money abroad is a regular expense for many individuals—but the fees increase quickly.

Historic money transfer systems like Western Union, MoneyGram, and PayPal tend to charge exorbitant fees with additional, undeclared charges, including currency conversion markups. All these consume portions of the loved ones’ money. However, increasing numbers of people are using another option that is quick, inexpensive, and free of fees: gift cards.

In this article, we will discuss how gift cards are transforming the game for global remittances, providing an affordable and convenient solution that benefits both sender and receiver to retain more money.

The Traditional Cost of International Remittances

1. Transfer Fees

Conventional remittance platforms typically charge a percentage of the amount sent or impose flat-rate service fees. These charges vary based on the destination country, payment method, and delivery speed. For example:

• Western Union and MoneyGram may charge $5–$15 or more for transfers under $100.

• PayPal adds transfer fees, especially for international payments with currency exchange.

These fees can significantly reduce the amount received by the recipient, especially when sending money regularly.

2. Currency Conversion Fees

In addition to transfer fees, most services apply unfavorable exchange rates with built-in markups. These hidden conversion fees can lower the final value delivered to the recipient’s local currency without any clear breakdown.

For instance, if you send USD to INR or PHP, the recipient might receive far less than expected due to poor exchange rates.

3. Receiving Fees

In some countries, banks or remittance outlets charge the recipient a processing fee to collect or deposit funds. Whether it’s a cash pickup or a bank transfer, these fees further reduce the amount of money that can reach the needy person.

Read related blogs: Why Gift Cards Make Sending Money Simpler and Faster

The Emergence of Gift Cards in International Remittances

1. What Are Gift Cards for Remittances?

Gift cards—predominantly prepaid Visa or MasterCard and retailer-specific cards like Amazon or Flipkart—can be sent internationally as a substitute for traditional money transfers. Depending on the local options, these cards can be used to shop online, pay bills, or convert into cash.

Gift cards come in digital and physical formats, offering flexibility based on the recipient’s location and preferences.

2. How Gift Cards Work for Remittances

The process is straightforward:

1. Choose the type of gift card.
2. Purchase it online or in-store.
3. Send it via email, text, or mail.
4. The recipient redeems and uses it immediately or at their convenience.

This simplicity avoids many of the delays and charges tied to traditional remittances.

How Gift Cards Help People Save Money on International Remittances

There are various advantages of gift cards – one is saving money on international remittance. Let’s take a look at how-

1. Eliminating Transfer Fees

Most gift cards come with no transfer fees. You’re simply paying for the face value of the card—no extra percentages, surcharges, or speed-related costs. This can save significantly over time compared to traditional services that charge up to 10% per transaction.

2. No Hidden Fees

Gift cards offer clear, transparent pricing. You pay $100, and the recipient gets $100 worth of value. There are no processing or receiving fees on the recipient’s end, making it a straightforward and fair transaction.

3. Avoiding Currency Conversion Markups

You can purchase gift cards in the recipient’s local currency to avoid unfavorable exchange rates. For example, sending a Flipkart INR gift card to someone in India means they receive full purchasing power without any deduction.

Some prepaid Visa/MasterCard gift cards also offer competitive exchange rates if cross-border usage is required.

4. No Receiving Fees

One of the most significant advantages of using gift cards for international remittances is that recipients are not charged to receive them. There’s no need to go to a bank, pay a pickup fee, or worry about delays. The full value goes directly to the person you care about.

Read related blogs: Avoid Hidden Fees: Why Gift Cards Are Best for International Transfers

The Speed and Convenience of Sending Money with Gift Cards

1. Instant or Near-Instant Transfers

Digital gift cards can be delivered instantly via email or messaging apps. This is especially helpful for urgent remittances, such as paying for groceries, school supplies, or emergency expenses.

Compared to traditional processing methods that take 1–5 days, gift cards offer near real-time value transfer.

2. Simple Process for Senders and Recipients

Anyone can purchase gift cards online or from major retailers. No bank accounts, lengthy forms, or ID verifications are needed. Similarly, recipients can easily redeem the card online or in-store.

This is particularly useful for unbanked populations or those in rural areas.

3. No Need for Third-Party Intermediaries

Gift cards bypass the need for remittance agents or banks, cutting down on complexity, time, and costs. The direct-to-recipient approach empowers both the sender and the receiver.

Types of Gift Cards Best for Saving Money on International Remittances

1. Prepaid Visa and MasterCard Gift Cards

• Global usability: Accepted in stores and online worldwide.

• Cash-like flexibility: This can be used for shopping, bill payments, and ATM withdrawals (depending on region).

• No receiving fees: Full value goes to the recipient.

2. Retailer-Specific Gift Cards

• Amazon: Ideal for general use, especially in countries with local Amazon sites.

• Flipkart: Great for India-based recipients who shop online.

• Walmart: Useful for families in the U.S., Mexico, and select international markets.

These cards help ensure recipients can buy what they need without converting funds.

3. Digital Gift Cards

• Speed: Delivered instantly by email or SMS.

• Security: Trackable and easy to resend if needed.

• Popular brands: Apple, Google Play, Netflix—great for entertainment or mobile app purchases.

How to Ensure a Secure and Successful Gift Card Remittance

1. Choose Reputable Sources

Only buy gift cards from trusted sources like:

• Official brand websites (e.g., Amazon, Visa)

• Major retailers (e.g., Walmart, Target)

• Licensed gift card marketplaces (e.g., GiftCards.com)

Avoid secondhand platforms to reduce the risk of scams or expired cards.

2. Verify Recipient Compatibility

Make sure the recipient can redeem the gift card in their country. This includes checking:

• Accepted regions

• Valid currencies

• Local retailer availability

3. Use Secure Sending Platforms

Deliver digital gift cards using platforms with encryption and fraud protection. Avoid sending sensitive information through unsecured messaging apps.

Alternatives to Gift Cards for International Remittances

Other low-cost methods include:

• Peer-to-peer apps: PayPal, Venmo, Wise (formerly TransferWise)

• Cryptocurrency: Bitcoin or USDT for tech-savvy users

• Mobile wallets: M-Pesa, GCash, or Airtel Money

While these options offer varying degrees of affordability and speed, gift cards remain the most fee-transparent and widely accessible method for many senders.

Conclusion

Gift cards are transforming the way people send money across borders. By eliminating fees, simplifying the process, and offering near-instant delivery, they provide a more innovative alternative to traditional remittance methods.

Whether sending support to family abroad or helping a friend in need, gift cards for international remittances offer speed, security, and maximum value—without the middleman or the markup.

Beem offers a fast, secure way to send money online, even to people without bank accounts. With its Send Now, Pay Later™ feature, Beem makes money transfers simple, instant, and stress-free.

Ready to try it for yourself? Consider using a gift card the next time you send money internationally—and see the savings firsthand.

FAQs: How Gift Cards Help People Save Money