How to Take Advantage of Gift Cards to Send Money for Less

With everything moving quickly online, transferring money speedily and cheaply matters a lot. Suppose you’re helping a family member in a different country, assisting a friend in need, or giving someone a gift. One practical option to consider is the advantage of gift cards to send money, offering a fast, low-cost alternative to traditional transfer methods. In that case, Western Union, PayPal, or wire transfers from a bank include frustratingly high charges and traditional currency conversion and won’t be delivered for days.

That’s why gift cards are a great solution. Where people once saw e-gifts only as a way to give, they now see them as innovative ways to send and receive money quickly, easily, and in many situations.

This blog explains the pros and cons of using gift cards for money transfers and how to use them instead of regular methods, helping you save even more money.

Why Gift Cards Are a Cost-Effective Option for Sending Money

Gift cards offer a budget-friendly alternative to traditional money transfers. They eliminate costly fees, provide instant delivery, and ensure recipients receive the full value without additional charges.

1. Eliminating Transfer Fees

One of the most significant advantages of using gift cards to send money is the absence of traditional transfer fees. Services like Western Union or PayPal often charge hefty fees, especially for international transactions. For instance, sending $100 overseas might cost you anywhere from $5 to $20 in fees alone.

Gift cards, particularly digital gift cards, often bypass these fees entirely. If you buy a $100 Amazon or prepaid Visa card and send it digitally, the Recipient typically receives the full $100 value. This cost-effective benefit makes gift cards a strong alternative for small to moderate money transfers.

2. No Receiving Fees

Not only do gift cards reduce costs for the sender, but they also eliminate receiving fees for the recipient. Traditional services sometimes charge the receiver to withdraw or access funds, but this problem disappears with gift cards.

Once the recipient receives the gift card—whether physical or digital—they can use its full value instantly without paying a fee to access or use it. This mutual benefit for both parties is one of the strongest selling points of gift card transfers.

3. No Currency Conversion Fees

If you send money internationally, currency conversion fees can significantly reduce your transfer. However, multi-currency or globally accepted gift cards (such as international Amazon or prepaid Visa cards) eliminate these extra costs.

Many digital gift cards are region-specific but internationally redeemable, meaning you can send a card that can be used in the recipient’s local currency. This saves the sender and the recipient from hidden exchange rate markups and processing fees.

4. Instant Delivery

Speed is another big win for gift cards. While bank transfers can take several days to process, digital gift cards are delivered instantly, making them ideal for emergencies or last-minute needs.

Whether you send an iTunes card to a student or a prepaid Visa to a family member abroad, the funds can be accessed almost immediately, making gift cards a faster, more convenient choice.

Read related blogs: Start Sending Money with Gift Cards: A Complete Guide for Beginners

How to Take Advantage of Gift Cards for Sending Money

Using gift cards to send money is an innovative, low-cost strategy. Choosing the right type and source ensures fast, secure, and fee-free transfers to your recipients.

1. Choose the Right Type of Gift Card

Prepaid Visa/MasterCard Gift Cards

Prepaid Visa or MasterCard gift cards are universally accepted and offer the most flexibility. Depending on the card value, they may charge $2.95- $6.95 activation fees. They can be used online or in-store, anywhere those networks are accepted. This is perfect for recipients who need to pay bills, shop for groceries, or handle various expenses.

Retailer-Specific Gift Cards

Retailer-specific gift cards—like Amazon, Walmart, or Target—are great if you know the Recipient’s needs. For example, sending an Amazon card to someone who shops frequently online lets them buy books, groceries, or electronics without spending money.

Digital Gift Cards

Digital gift cards are unbeatable for speed and convenience. They can be emailed or texted instantly and accessed right away. These are particularly useful for international recipients or anyone needing funds.

Popular digital options include:

1. Apple iTunes
2. Google Play
3. Uber Eats
4. Netflix
5. Airbnb

2. Buy Gift Cards from Trusted Sources

Official Retailer Websites

Always purchase from official websites or reputable platforms to avoid scams or counterfeit cards. Stick to the official sites of Visa, Amazon, or major retailers to ensure authenticity and protect your money.

Check for Fees

Not all gift cards are created equal. Some, especially Visa/MasterCard prepaid cards, come with activation or service fees. Before buying, read the terms carefully to avoid paying more than necessary.

Aim for cards that:

• Have no activation fees
• Don’t expire or reduce in value over time
• Offer transparent pricing

Select the Right Value

Choose a gift card that meets the Recipient’s actual needs. Sending too little may not be helpful, while sending too much on a retailer-specific card may leave unused funds.

If necessary, buy multiple cards to match the total amount you want to send. For example, instead of sending a single $200 Amazon card, consider two $100 cards, giving you more flexibility for use or resale.

3. Send the Gift Card to the Recipient

For Digital Gift Cards

Sending a digital card is easy:

• Enter the recipient’s email or phone number
• Add a personalized message
• Confirm the delivery time (instant or scheduled)

Always double-check the recipient’s contact details to ensure quick, error-free delivery.

For Physical Gift Cards

If you’re mailing a physical gift card:

• Use reliable shipping with tracking
• Package the card securely
• Confirm the recipient’s mailing address.

While this method isn’t instant, it’s ideal for situations where internet access is limited or digital cards cannot be used.

4. Recipient Redeems the Gift Card

Digital Gift Cards: Recipients receive an email or text with a redemption code or link. They can use the gift card right away online or in apps.

Physical Gift Cards: These can be used in-store or online, depending on the brand.

Either way, the process is straightforward and doesn’t require bank accounts, ID verification, or waiting periods.

Read related blogs: How to Get Started with Sending Money Using Gift Cards Today

Strategies to Maximize Savings When Sending Money with Gift Cards

Innovative strategies like choosing no-fee options, leveraging retailer deals, and using bulk discounts can help maximize your savings when sending money with gift cards.

1. Look for No-Fee Gift Cards

Some gift cards (especially prepaid cards) have activation fees. Always search for cards with no or low fees. Compare different brands or platforms to get the best value for your money.

2. Use Gift Cards for Specific Retailers

Sending a card to a store like Amazon, Walmart, or Flipkart can be more useful than cash if you know exactly what the recipient needs. This strategy ensures your money is used for necessary purchases like food, medicine, or school supplies.

3. Buy Gift Cards in Bulk for Better Deals

Some platforms offer bulk discounts or bonus rewards when buying gift cards in quantity. If you’re planning multiple transfers (e.g., monthly family support), this can significantly lower your overall costs.

Check for platforms that offer:

• Cashback
• Points or rewards
• Extra value (e.g., buy a $100 card, get $10 free)

4. Take Advantage of Special Promotions and Offers

Gift card deals pop up during holidays or retail events. Watch for promotions offering extra credit, discounts, or cashback. These limited-time deals can stretch your budget further, giving you more value for the exact cost.

Common Mistakes to Avoid When Sending Money with Gift Cards

While using gift cards to send money is convenient and cost-effective, avoiding common mistakes, like choosing the wrong card type or missing hidden fees, is essential to ensure a smooth transaction.

1. Sending the Wrong Type of Card

Ensure you know what type of card the recipient needs and can use. For example, don’t send a U.S.-only Walmart card to someone from another country. Research which retailers or card networks are supported in their region.

2. Forgetting to Verify Recipient Details

Misspelled email addresses or wrong mailing addresses can lead to failed deliveries. Always double-check all recipient information before sending.

3. Not Checking for Hidden Fees

Activation, service, or shipping fees can affect your total gift amount. Be sure to review the fine print before purchasing any card.

4. Scams and Fraudulent Requests

Be wary of anyone asking for gift cards via email or social media. Scammers frequently request gift cards as payment for fake services or threats. Only send gift cards to people you know and trust.

Conclusion

Gift cards are no longer just for birthdays and holidays—they’re a powerful, low-cost alternative for sending money domestically or internationally. They eliminate transfer fees, provide instant delivery, and give recipients immediate access to usable funds.

By choosing the correct type of gift card, buying from secure sources, and using innovative strategies like bulk purchases or promotional deals, you can save money and time while ensuring your support reaches your loved ones quickly and securely.

Beem offers a fast, secure way to send money online, helping users avoid high fees and delays tied to traditional transfers. Whether you’re sending funds domestically or internationally, Beem simplifies digital payments with flexible options like gift cards and Send Now, Pay Later™, giving you more control over how and when you pay.

So next time you need to send money, skip the wire transfer fees and send a gift card instead. It’s the more innovative, faster, and more affordable way to help someone from afar.

FAQs: Advantage of Gift Cards to Send Money