A balance that only counts once you have bought it

You buy a gift card, either as a present for someone else or for yourself, and from that moment on a piece of plastic or a digital code holds a gift card balance that still has to be spent. Unlike cash or a bank card, there is rarely an easy way to get the balance back if a gift card is lost or stolen, which is why a few extra precautions are worth taking as early as the moment you buy it.

How safe a gift card really is depends heavily on where you buy it, how you keep it and how closely you keep track of the remaining balance.

Where buying a gift card is safest

Buying directly from the shop that issues it, either in store or through its own website, is considered the most reliable route, because the card is issued there at full value and with a complete history. Gift cards from unofficial resale channels, on the other hand, carry a higher risk of already being partly spent, invalid, or linked to a fraudulent original purchase that the issuing retailer later blocks. An overview of the shops helps you find the official place to buy a particular gift card, rather than relying on an unknown middleman.

Why a physical card bought in store deserves extra care

With physical gift cards on a shop display, there is an extra risk that does not exist when you buy online: tampering right there on the rack. Someone can note down or photograph the activation code printed on the back of the card and then quietly put the card back before anyone has bought it. As soon as another customer buys and loads that card, the person with the noted code watches the balance and spends it before the actual buyer has even used the card. A card with visible scratches on the protective strip over the code, or packaging that has already been peeled open, should therefore stay on the rack.

Check the activation straight away

After buying, it is worth checking the card's balance straight away, either through the balance check given on the card or on your first attempt to use it with a small amount. If the card shows a lower balance than you paid from the start, or the stated amount cannot be confirmed at all, that is a clear warning sign, best reported to the seller immediately while you still have the receipt. The more time passes between buying and first checking, the harder it becomes to prove later that the balance was never complete in the first place.

Worked example: one gift card over several purchases

Say a gift card is bought with a balance of 50 euros and used on the first purchase for an item worth 32 euros. That leaves a remaining balance of 18 euros on the card, which can be used again on a later purchase. If the remaining balance is not enough to cover the full price on that second purchase, for example for an item costing 25 euros, the difference of 7 euros is usually paid with another payment method, so that the gift card is used up completely rather than leaving a small amount unused.

What to watch when managing several gift cards

• Keep the receipt and card number separately from the physical code, so that you at least have proof of purchase if the card is lost.
• Keep an eye on any expiry date or inactivity fee after a long period without use, as both differ between issuers and countries.
• Note down the remaining balance after each purchase or check it through the card's balance check, rather than relying on memory alone.
• Use several small gift cards fairly soon rather than keeping them for years, because an issuer may close down or change its terms in that time.

When a gift card is misused as a way to demand payment

A well-known fraud pattern demands that an alleged debt, a fine or a service be paid exclusively with a gift card code. No legitimate organisation asks for payment this way, because gift cards are not meant for this purpose and a code, once handed over, can hardly be traced. If you are asked to pay like this, together with time pressure or threats, it is almost certainly an attempted fraud, however convincing the story behind it sounds.

The difference from a discount code

A gift card carries its own prepaid value and is therefore clearly different from a discount code, which only lowers the price of an order without storing any money value itself. Exactly where the line between the two runs and what that means for the risks involved is explained in more detail in the article on gift cards and vouchers. Whether the right of withdrawal for online purchases applies when you buy a gift card online depends on the individual case; this is an EU rule, and outside the EU, for example in the UK, the US or Canada, the rules are set nationally. If in doubt, ask before you buy.

Frequently asked questions

Can I have a stolen gift card blocked like a bank card?

That depends on the issuer. Some providers register gift cards along with the receipt and can block or transfer a remaining balance if the card is stolen, while others treat a physical card like cash, without that option.

How can I tell if a card on the rack has already been tampered with?

Look out for scratches on the protective strip over the activation code, packaging that has already been peeled open, or codes that are unusually easy to see without any protective layer having to be removed. It is better not to buy cards like these, or to point them out to staff straight away.

Does a gift card balance expire automatically after a certain time?

That is handled differently depending on the country and the issuer. Some cards have a fixed expiry date or a fee after a long period without use, while others stay valid indefinitely. The exact terms are usually printed on the card or its packaging.

What do I do with a small remaining balance that is not enough for any purchase?

Many shops let you combine a remaining balance with another payment method for a larger amount, so it does not go unused. Whether that is possible usually becomes clear at checkout when you enter the card.