On the sender’s side, traditional methods of sending money – bank transfers, remittance services, and/or wires – can carry frustratingly high fees that come as a surprise. Send money for free using gift cards to avoid these hidden costs and enjoy a more convenient, fee-free alternative. Whether a local transfer or an international sender, senders experience quite hefty service charges (due to high service fees in payments), poor currency conversion rates, or wait days for recipients to get the funds when sending funds through traditional remittance services.
However, an emerging “sending money” method—gift cards and voucher codes—is gaining popularity. It is more than just a convenient gift idea. As a method of sending value, gift cards have quietly become efficient and fee-free, especially for small to medium-sized transfers. This blog highlights how gift cards can provide a fee-free option for transferring funds (eliminating transfer fees, days to arrive, etc., ultimately proving to be a better solution over traditional remittance services.
What Are Gift Cards and How Do They Work for Sending Money?
A gift card is a prepaid card loaded with a specific amount of money that can be used for purchases at a particular store or across a payment network (like Visa or MasterCard). These cards are typically purchased online or in-store and come in two primary formats:
Prepaid Visa/MasterCard cards: These are universally accepted, just like debit or credit cards, making them versatile for online and in-store purchases.
Retailer-specific cards: These are tied to particular merchants like Amazon, Walmart, or Flipkart and can only be redeemed within those ecosystems.
How it works:
- The sender purchases a gift card.
- It is sent digitally or physically to the recipient.
Depending on the card type and local options, the recipient can redeem the card to make purchases or convert it into cash.
This simple process circumvents the red tape of traditional banking, and the best part? It often comes with zero transfer fees.
Read related blogs: What Are the Best Gift Cards for International Money Transfers?
The Hidden Costs of Traditional Money Transfer Method
To fully appreciate the value of gift cards, it’s essential to understand the downsides of conventional money transfer systems. Here are some of the most common hidden fees:
1. Service Fees: Money transfer providers like Western Union or MoneyGram charge upfront fees, either as a flat rate or a percentage, increasing the total cost of the transfer.
2. Exchange Rate Markups: These services offer unfavorable exchange rates, significantly lower than mid-market rates, letting providers profit from the currency conversion and reducing the recipient’s final amount.
3. Receiving Charges: In some countries, recipients are charged a fee to access or withdraw transferred funds, reducing the amount they ultimately receive from the original transfer.
4. Administrative Fees: Hidden administrative fees may be added for processing, account maintenance, or compliance. These fees are often undisclosed upfront and contribute to higher-than-expected overall transfer costs.
These fees can accumulate significantly, especially in international transactions, reducing the overall value transferred to the recipient.
How Gift Cards Eliminate Fees for Sending Money
Traditional money transfers often have hidden fees and delays, but gift cards provide an innovative, fee-free alternative. They offer instant delivery, transparency, and convenience for local and international money transfers.
1. No Transfer Fees: Gift cards do not come with transfer fees. The card cost is precisely what you pay upfront, and there are typically no additional charges for sending it. This contrasts with services like PayPal, Western Union, or wire transfers, where the fees can be 3-10% or more of the amount sent.
2. No Hidden Charges: Gift cards offer pricing transparency. There are no hidden administrative costs, foreign exchange surcharges, or receiver fees. The recipient knows precisely how much value they’re getting—and so do you.
3. Free International Transfers: Digital gift cards can be sent to recipients worldwide via email or messaging without incurring international transfer fees. This is especially helpful for families sending support abroad or friends gifting each other across borders.
4. Avoid Currency Conversion Fees: Gift cards typically maintain a fixed currency denomination. Some cards are even multi-currency or accepted internationally (like prepaid Visa cards), enabling the recipient to avoid unfavorable exchange rates.
Read related blogs: Benefits of Sending Money via Gift Cards Instead of Bank Transfer
Types of Gift Cards to Use for Free Money Transfers
Choosing the right gift card is key to sending money efficiently. Each type offers unique benefits for secure, fee-free money transfers, from prepaid cards to retailer-specific and digital options.
1. Prepaid Visa and MasterCard Gift Cards are widely accepted by global merchants, both online and offline. Their flexibility makes them a go-to option for general spending, particularly when transferring funds to someone who needs access to a wide range of products and services.
2. Retailer-Specific Gift Cards: Cards for platforms like Amazon, Flipkart, or Walmart are perfect when the recipient is likely to shop from these outlets. They’re handy for e-commerce purchases, ensuring the value is spent on desired products without converting to cash.
3. Digital Gift Cards: Digital or e-gift cards are delivered instantly via email or apps, eliminating delivery delays and shipping costs. Many platforms now offer real-time delivery and redemption tracking, making them ideal for last-minute or international transfers.
How to Safely Send Money with Gift Cards
To ensure your fee-free gift card transfer goes smoothly, follow these best practices:
1. Choose the Right Card
Match the card to the recipient’s geographical location and intended use:
- For general usage, go with a prepaid Visa/MasterCard.
- Consider cards for online shopping for Amazon, Walmart, or regional platforms like Flipkart.
2. Buy from Reputable Sources
Avoid scams and fraudulent cards by purchasing only from:
- Official brand websites.
- Well-known retailers.
- Trusted digital platforms like Amazon and PayPal or reputable third-party vendors like Gyft or eGifter.
3. Track and Confirm delivery
When sending digital gift cards:
- Double-check the recipient’s email or contact information.
- Use services that provide tracking, delivery confirmation, or even redemption notifications for added peace of mind.
Common Concerns About Using Gift Cards for Sending Money
While gift cards offer a convenient way to send money, users often have concerns about redemption limits, currency issues, and security. Understanding these challenges helps ensure a smooth, worry-free experience.
1. Limited Redemption Options
Retailer-specific gift cards can only be used at designated stores. If the recipient doesn’t stop there, the value may go unused. Solve this by:
- Asking about their preferences in advance.
- Choosing multi-use cards like Visa/MasterCard when flexibility is needed.
2. Currency Conversion
Currency issues may arise if the gift card is in USD and the recipient is in another country. Look for:
- Multi-currency cards or cards accepted internationally.
- Local retailer gift cards are available in the recipient’s home currency.
3. Security Risks
Gift card fraud is a real issue. Protect yourself by:
- Avoiding suspicious online deals or classified ads.
- Never sending card numbers via insecure channels.
- Using platforms that offer delivery verification and fraud protection.
When to Use Gift Cards vs. Traditional Money Transfer Services
Gift cards aren’t always the best fit for every situation. Here’s a quick guide on when they work best:
- Small to Medium Transfers: Gift cards are perfect for under $500, where traditional transfer fees would eat into the value, making them more cost-effective and efficient.
- E-commerce Shopping: Ideal for online shoppers, gift cards let recipients buy directly from platforms like Amazon or Walmart, eliminating the need for physical cash or bank transactions.
- Unbanked Recipients: Gift cards offer a practical solution for recipients without bank accounts, allowing them to access funds for purchases without relying on financial institutions.
- Urgent Gifts: Digital gift cards can be sent instantly via email or SMS, making them perfect for last-minute gifts, emergencies, or time-sensitive financial support.
Use traditional services if you’re transferring large sums, need to pay bills directly, or when cash withdrawals are necessary.
Conclusion: How to Send Money for Free Using Gift Cards
Gift cards offer an innovative, flexible, and fee-free alternative to traditional transfers. They are a powerful tool for modern, cost-conscious consumers with no hidden fees, instant digital delivery, and broad acceptance.
Whether you’re supporting a family member abroad, sending birthday money to a friend, or looking to avoid costly remittance services, gift cards may be your best-kept secret. Beem makes sending money online simple and stress-free. With low fees and fast transfers, it’s perfect for global support. You can even use digital gift cards for added convenience.
They’re simple to use, secure to send, and—most importantly—they keep more of your money where it belongs: with the recipient.
So, next time you’re about to wire money or pay extra to transfer funds, consider a gift card instead. You might find it’s the most efficient and cost-effective solution you never knew you needed.
