How to Send Money with Virtual Gift Cards and Avoid Transfer Fees

Sending money has become faster and more flexible, and one rising trend is using virtual gift cards as a low-cost alternative. Virtual gift cards can be a creative and fee-free way to transfer funds, especially when traditional methods come with steep charges.

This method is gaining popularity for its ease, speed, and accessibility. Instead of incurring fees from wire transfers or cash apps, you can use a virtual gift card to cover essentials or offer spending freedom.

What Are Virtual Gift Cards?

Virtual gift cards are a convenient and fast way to send money or make purchases online. They work like prepaid cards but are delivered digitally, making them ideal for instant transactions and remote gifting.

Definition and Functionality

Virtual gift cards are digital alternatives to physical cards. They contain a unique code sent via email or app. Depending on the retailer or card issuer, these codes can be redeemed for online or in-store purchases.

Physical vs. Virtual Cards

Physical cards are tangible and mailed, while virtual cards are delivered instantly and digitally. Virtual cards are more suitable for urgent needs, whereas physical ones may be better for traditional gifting.

Popular Virtual Card Providers

Leading virtual gift card platforms include Visa, Mastercard, Amazon, Walmart, Google Play, and Apple. These cards can often be used on various platforms, giving the recipient flexible purchasing power.

Read related blogs: Pros and Cons of Using Gift Cards for International Transfers

How to Send Money Using Virtual Gift Cards

Sending money via virtual gift cards is simple and secure. It involves choosing a reliable platform, selecting the right card, and ensuring the recipient can easily access and use the gift card.

Choose a Reliable Platform

Select a trusted platform like PayPal, Venmo, or a retailer’s website. These services allow you to purchase and send virtual gift cards safely and quickly, often with zero processing fees.

Select and Purchase the Card

Pick a card based on the recipient’s needs. Visa and Amazon gift cards are versatile and widely accepted. Enter the amount, personalize the message, and provide the recipient’s email or phone number.

Send the Card Securely

After purchasing, the virtual gift card is delivered instantly via email or text. Some platforms also offer the option to send through their app or digital wallet for added convenience and tracking.

Help with Redemption

Ensure the recipient knows how to redeem the card. If needed, include a link or instructions. Some cards work across multiple merchants, while others are retailer-specific, so clarity is essential.

Read related blogs: How Sending Money with Gift Cards Can Help You Save on Fees

The Benefits of Using Virtual Gift Cards for Sending Money

Virtual gift cards offer an innovative, flexible alternative to traditional money transfers. They eliminate fees, speed up delivery, and provide secure, bank-free solutions that make sending funds easier for both the sender and recipient.

Zero Transfer Fees

One of the most significant advantages of using virtual gift cards is eliminating transfer fees. Traditional methods like wire transfers, bank deposits, and even some digital wallets often charge a percentage or a flat fee. In contrast, virtual gift cards typically only charge the card’s face value unless there’s an activation fee, which many retailers waive.

Even a $3 fee can be a significant percentage of the transaction when sending small amounts. By choosing fee-free virtual cards, you retain 100% of the value sent. This makes them ideal for micro-transfers, gifting, or supporting someone financially without deductions. 

Speed of Transactions

Virtual gift cards are known for their speed and convenience. Once purchased, they are delivered almost instantly to the recipient via email or text. It is beneficial when funds are needed quickly, far faster than bank transfers that may take days.

Unlike physical gift cards, which require shipping, or bank wires, which need clearing time, virtual options ensure the money is in the recipient’s hands within minutes. Whether helping a friend in need or sending a birthday surprise, virtual gift cards offer a reliable and fast money transfer experience that suits our fast-paced digital lifestyle.

No Bank Account Needed

Unlike traditional banking systems, virtual gift cards can be used without a bank account, making them ideal for unbanked or underbanked recipients. This expands financial access to people who do not meet the criteria to open or maintain bank accounts.

A Visa gift card, for example, can be used for online shopping or even loaded onto a digital wallet like Apple Pay or Google Pay. It means someone can receive and spend funds without touching a bank. It benefits teenagers, freelancers, or international recipients in regions with limited banking access.

Security and Privacy

Virtual gift cards also offer a high level of security and privacy. Unlike traditional bank transfers, which require routing and account numbers, virtual gift cards only require an email address or phone number. It prevents sensitive financial details from being exposed.

Many virtual cards also have fraud protection and limited liability for unauthorized purchases. Furthermore, recipients can use the gift card for specific purposes without linking to their accounts. It makes it an appealing choice for those who prioritize digital security and want to avoid oversharing personal information in online financial transactions.

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

Where to Buy Virtual Gift Cards

There are many reputable platforms and retailers where you can buy virtual gift cards. Amazon, Walmart, and Target offer brand-specific cards, while Visa, Mastercard, and American Express provide general-purpose cards. You can also use platforms like PayPal, Gifto, eGifter, or even Apple and Google Play stores.

These sites allow you to customize card values, add messages, and send instantly. Ensure the seller is legitimate to avoid scams. Most online retailers will email the card within minutes, and some apps let you track delivery or usage. Always keep your purchase receipt for verification and support.

Avoiding Hidden Fees When Using Virtual Gift Cards

Watching for hidden fees is crucial to getting the most out of virtual gift cards. Some general-purpose cards, like Visa or Mastercard gift cards, may have activation fees, especially for cards under $25. Additionally, certain cards have expiration dates or inactivity fees if not used within a specific period.

Before purchasing, check the terms and conditions and look for cards advertising “no fee” or “no expiration.” If sending internationally, verify that the card can be redeemed in the recipient’s country without currency conversion fees or restrictions. Reading the fine print can help avoid surprise costs and maximize card value.

Common Challenges of Using Virtual Gift Cards

Virtual gift cards offer a fast and convenient way to send funds, but several challenges can impact usability, security, and overall value.

Limited Redemption Options

One major drawback of virtual gift cards is their limited usability, especially if the card is brand-specific. A card for a U.S. retailer like Walmart may not work in other countries, and some platforms restrict usage to certain online stores. It means your recipient may struggle to find places where the card is accepted.

Visa or Mastercard gift cards are more flexible but can still face restrictions when used for international online purchases. It’s essential to confirm the recipient’s location and preferred merchants before sending. Choose universally accepted cards or apps that offer a wide range of partner retailers to ensure smooth usage.

Fraud Risks

Despite their convenience, virtual gift cards are also a target for scammers. Fraudsters often trick people into paying with gift cards since, once redeemed, they are almost impossible to trace or refund. Always purchase from trusted sources and never share card codes publicly.

If sending it to someone you don’t know personally, verify their identity first. Use platforms that offer purchase protection or tracking. Be cautious of phishing scams asking for gift card payments. Educating both sender and recipient about fraud risks ensures your transaction remains safe, secure, and beneficial to the intended user.

Alternatives to Virtual Gift Cards for Money Transfers

If virtual gift cards don’t suit your needs, consider other no-fee or low-fee transfer options. Apps like Zelle, Cash App, Venmo, and PayPal allow peer-to-peer transfers with minimal or no charges, especially for domestic payments. For international transfers, services like Wise (formerly TransferWise) or Revolut offer low exchange rates and fees.

Cryptocurrency is another option for tech-savvy users, though it comes with volatility and regulatory concerns. Each method has pros and cons depending on speed, cost, and recipient preferences. Evaluate the best option based on urgency, transaction size, and geographic limitations to find the most cost-effective solution.

Conclusion

Sending money through virtual gift cards is an increasingly innovative and cost-effective alternative to traditional transfer methods. It avoids high fees, works instantly, and offers flexibility and privacy. 

Beem makes it easy to send money instantly, even to people without bank accounts. Whether helping a loved one in a pinch or handling a quick payment, Beem is built for speed and simplicity. With its Send Now, Pay Later™ feature, you get fast, reliable transfers exactly when needed.

Whether helping a friend, paying someone back, or gifting funds for an occasion, virtual gift cards can be a fast and secure choice. Just be mindful of redemption restrictions, hidden fees, and fraud risks. They are a powerful tool for efficient and affordable money transfers, ensuring the full amount reaches the recipient without unnecessary deductions.

FAQs