Step-by-Step Guide: Sending Money Using Gift Cards

Traditional money-moving techniques, including bank transfers, wire services, and internet-based payment systems like PayPal, are facing competition from less expensive and more readily available alternatives. Sending money using gift cards has emerged as one such option, offering a simple and accessible way to transfer value across borders. This competition is gaining momentum as international commerce continues to grow.

The tradition of giving money through the use of gift cards is one that is quickly becoming popular. Gifting gift cards offers an enticing mix of speed, ease, and convenience, whether you are remitting money across the country or on the other side of the globe.

This guide provides a step-by-step and comprehensive explanation of how to send money with gift cards. It also outlines the advantages of using gift cards and best practices that must be adhered to to ensure a secure and seamless transaction.

Why Use Gift Cards to Send Money?

1. Low or No Fees

One of the main advantages of using gift cards is the minimal cost involved. Unlike traditional money transfer services such as Western Union or MoneyGram, which often charge high fees—especially for international transfers—many gift card platforms charge no additional fees beyond the card’s face value.

Even when prepaid cards (like Visa or MasterCard) have activation or usage fees, these are typically lower than international transfer charges. For example, a $10 fee on a $500 money transfer via wire might be replaced by a $3 activation fee on a prepaid Visa gift card.

2. Speed and Convenience

With digital gift cards, the transfer is practically instantaneous. Most digital cards are delivered via email or SMS immediately after purchase, making them ideal for urgent situations. Recipients don’t have to wait for banking hours, clearing periods, or postal services. They can start using the funds right away.

3. No Need for Bank Accounts

Not everyone has access to a bank account, especially in developing countries. Gift cards offer a practical solution for the unbanked population. If the recipient can access email or mobile apps, they can receive and use a gift card without any bank account or credit history.

4. Security and Privacy

Gift cards don’t require sharing personal or banking details, reducing exposure to cyber threats and identity theft. Prepaid cards often come with PIN protection, and most platforms allow you to track the status of a gift card or even cancel it in case of theft or loss.

Read related blogs: How to Easily Send Money to Loved Ones Abroad Using Gift Cards

Step 1: Choose the Right Type of Gift Card

Selecting the right gift card depends on your recipient’s needs and your intended use.

1. Prepaid Visa/MasterCard Gift Cards

These are universal options that work nearly anywhere and accept Visa or MasterCard. They are ideal for sending money without restrictions on where or how it can be used. They’re also well-suited for international transfers, as recipients can use them for online shopping or ATM withdrawals worldwide.

2. Retailer-Specific Gift Cards

If you know your recipient frequently shops at a particular store, a retailer-specific gift card (like Amazon, Flipkart, Walmart, etc.) could be more useful. These cards can be used online and sometimes in physical stores, offering convenience for daily purchases.

3. Digital Gift Cards

Digital gift cards are delivered via email or text, offering immediate funds access. These are perfect for fast, contactless transfers. Options include:

• Amazon

• Google Play

• Apple iTunes

• Steam

• Uber

4. Multi-Currency Cards

For recipients in different countries, consider multi-currency prepaid cards. These allow users to spend money in their local currency without incurring foreign exchange conversion fees, ensuring maximum value from your transfer.

Step 2: Purchase the Gift Card

1. Buy from Reputable Sources

Always buy from trusted platforms, such as:

• Official retailer websites (e.g., Amazon, Walmart)

• Banks and financial institutions

• Authorized gift card resellers like GiftCards.com, Gyft, or Raise

Avoid purchasing from auction sites or classified ads, as these are breeding grounds for scams and fake cards.

2. Check for Fees

Some gift cards come with activation or processing fees. Be sure to:

• Read the fine print before purchasing.

• Avoid cards with high hidden fees.

• Use platforms that are transparent about their charges.

This helps ensure more of your money reaches the recipient.

3. Choose the Card Value

Decide how much money you want to send. Gift cards are typically available in denominations ranging from $10 to $500. If you need to send a larger amount, consider purchasing multiple cards.

Step 3: Enter the Recipient’s Details

1. For Digital Gift Cards

During checkout, you’ll be asked for the recipient’s:

• Email address or mobile number.

• Optionally, a personal message to include with the gift card.

Choose your delivery method:

• Email

• Text/SMS

• Mobile wallet (e.g., Apple Pay, Google Pay)

2. For Physical Gift Cards

If you’re sending a physical card:

• Confirm the recipient’s mailing address.

• Use secure packaging to prevent theft or tampering.

• Opt for trackable shipping services like USPS Priority Mail, FedEx, or UPS.

3. Verify Information

Always double-check recipient details. A simple typo could send the card to the wrong person or delay the transaction. Include a thoughtful message to personalize the experience.

Step 4: Send the Gift Card

1. For Digital Cards

After entering the recipient’s Information:

• Click “Send” to complete the transaction.

• The recipient will usually receive a notification within minutes.

2. For Physical Cards

Once packaged:

• Ship it via a trusted courier.

• Choose trackable and insured delivery.

• Request a signature upon receipt for high-value cards.

3. Confirmation of Sending

After you send the card, you’ll receive:

• A confirmation email with transaction details.

• The card number (for digital cards).

• Delivery or tracking number (for physical cards).

Save this Information in case you need to follow up.

Step 5: Ensure the Recipient Can Redeem the Gift Card

1. Digital Gift Cards

Follow up to ensure the recipient has:

• Received the email or SMS

• Accessed the gift card

• Instructions to redeem it (e.g., logging into an Amazon account, entering a PIN, or adding it to Apple Wallet)

2. Physical Gift Cards

Ensure the recipient:

• Can use the card locally

• Knows how to redeem it in-store or online

• Understand any regional restrictions, especially with international retailer cards

Step 6: Monitor the Transaction (Optional)

1. Track the Redemption Status

Some services allow you to:

• Monitor if the gift card has been opened or redeemed.

• Set notifications for card usage.

This is especially helpful for large transfers to ensure the intended recipient uses the funds.

2. Report Issues Promptly

If the recipient:

• Doesn’t receive the card.

• Has trouble redeeming it.

• Reports the card as lost or stolen.

Contact customer support immediately. Use your purchase receipt or tracking number to resolve the issue efficiently.

Step 7: Enjoy the Benefits of Sending Money with Gift Cards

1. Low-Cost, Fast Transfers

Gift cards offer a streamlined alternative to bank wires and remittance services:

• No long wait times.

• Minimal or zero fees.

• Instant delivery for digital cards.

This makes them ideal for urgent, low-cost, and cross-border money transfers.

2. Recipient Flexibility

The recipient can:

• Shop online or in-store.

• Pay for services like streaming or food delivery.

• Sometimes, the card can be converted to cash, depending on local policies and platforms.

This flexibility makes gift cards a versatile way to send money.

Read related blogs: Is Sending Money Through Gift Cards Safe

Conclusion

Gift cards are a novel, safe, and time-saving alternative to more conventional ways of sending money. They are an excellent choice for providing financial assistance to loved ones, making foreign transfers, or even giving presents on special occasions because they have reduced fees, faster delivery, and better ease.

Gift cards offer a convenient solution for assisting a friend in another country, transferring funds for an emergency, or simply seeking a more secure alternative to cash.

Beem offers a modern alternative to traditional money transfers. Features like Send Now and Pay Later™ allow users to easily send money—even without a bank account—making it an ideal solution for fast, flexible, and inclusive payments.

If you give it a shot today, you might discover that it is the simplest and most cost-effective method of sending money you have ever used.

FAQs: Sending Money Using Gift Cards