You’ve probably bought a bunch of closed loop cards without even knowing it! They are sold by virtually every company in the United States and much of the $100 billion industry. In this article, I will explain what closed loop gift cards are and what to expect when purchasing them.

So what does closed circuit mean?

They are created by a merchant and can only be used at that location or at that merchant’s other facility. For example, a Target convert gift cards to usdt gift card can only be used at Target or You can’t use it to shop at similar stores like K-Mart or Wal-Mart. Closed loop cards are an extremely popular item and can be purchased virtually anywhere for any single business.


No Expiry Date

Gift cards for most major retailers never expire, meaning you can keep them for as long as you like. This is great because if you don’t want to use a card right away, it can be saved until the store needs to be visited. Check your wallet or sock drawer, you might have a few cards that you forgot and hid there!

No Service or Maintenance Fees

Closed loop cards almost never come with service fees. When you combine this benefit with no expiry date, you really can keep your gift cards forever without ever worrying about losing the balance. Open Loop cards can charge inactivity fees of up to $4.99 per month, which will drain your balance.

Cards For Every Occasion

Whether you need a gift card for a birthday, bridal shower or anniversary, you can find one designed specifically for your needs. This can add a personal touch to a gift that is often seen as impersonal. High-end retailers also have custom packaging that can really take your gift to the next level.


Missing Options

If you get a gift card that you don’t have a use for, you’re pretty much left with no options as it’s a closed loop. The card must be used at this retailer. The only real option left for an unwanted card is to settle for less by selling it for cash online on a gift card exchange site. In this case, however, you only receive a percentage of the total balance. In addition, some retailers do not have an online shop. This becomes an issue when the nearest location is in a different city and adds the inconvenience of traveling to a distant location.

lose the card or it is stolen, more stores do not have a clear replacement or reissuance policy. So, for example, if you bought a gift card and sent it to your nephew for his birthday and it got lost in the mail, you’d only have spent $25 for nothing. Always keep the receipts and serial numbers of your purchases so you can get a replacement in a similar situation.

Difficult to check balance

Some stores have very limited ability to check balance or manage your funds. For example, TJ Maxx has no way of checking remaining balance other than visiting the store. This, in turn, can be a major inconvenience and a tedious task. At other retailers, you may need to dial a 1-800 number or speak to someone in the customer service department to see how much money is left on the card.


Instead of just going out and buying a gift card because you think the recipient will enjoy it, ask questions about the card. Ask if it can be used online or in more locations. For example, a gap card can be used at Old Navy, Banana Republic , Piperlime, or Athleta.

Pros and cons of gift cards

Proving to be the most convenient way of fulfilling our “gift” duties, gift voucher giving has become very popular with modern consumers since its inception. Simple enough, all you have to do is walk up to the counter of any department store, clothing store, or popular restaurant and get yourself that little piece of cardboard or plastic with a face value. You give this card to the person you’re thinking of and that’s it – all your worries about your budget, choosing the right sweater size or the perfect scent or color are gone! You don’t even have to worry about packaging. Gift cards today come in really cute designs to match the occasion or the season. Some gift cards come in many cool designs and colors that you can choose from, from dalmatian dogs, flowers or just about anything you can think of. With it, you can even choose a specific design that suits the personality and tastes of the person you are giving it to. These alone are just a few of the many benefits of gift cards.

There’s more…

They then made gift cards available for ordering online, making it more convenient for any busy shopper. With just a few mouse clicks you can cut your Christmas list in half. Wait a few days for the cards to be delivered to your door, then you can start giving them to your loved ones. You can even choose to have the cards sent straight to the recipient’s mailbox with a short greeting from you. Especially for distant relatives and friends who aren’t quite sure what their interests are, gift cards give them freedom in how to use them and what to use them for. If you have nephews and nieces in the next city or state and you are very sure of how much they have grown, the gift card would also make better use of the money you have earmarked for them as you choose them a sweater, that doesn’t fit Make your gift useless and likely to end up in the back of the closet or garage. This saves the recipient having to go back to the store and have the size or color changed or, worse, have it returned.

Convenience aside, these tiny pieces of plastic are also very handy when you think about it. Not just from the giver’s perspective, but also from the recipient’s perspective, because these things are as good as hard cash. They can decide what to choose from that particular store, online store or what to eat at that particular restaurant. They also don’t have to worry about how to make that fake smile look as real as possible when they get this bright purple sweater with weird prints on it.

The disadvantages

People also have different views on receiving gift cards. Others believe it is very impersonal.

Aside from that, a lot of people who get them don’t use them at all. Either because they forgot to use it before the expiration date, or they forgot where they put it, or they might not be very keen on shopping at the particular store issuing the card. convert gift card to naira Some other reasons why some people don’t use their gift card is that they don’t have the time to drive several miles to the nearest store that accepts the card. One thing donors should consider before buying someone a retailer-specific card is to determine if the recipient lives in a location without major department stores or chain restaurants. Statistics show that about 8 to 10 percent of gift cards purchased are not redeemed.

If gift cards include an expiration date, recipients would have to rush to the issuing store to use it. Otherwise the value of the card will decrease or you would have to pay a certain amount for the replacement. With only a third of recipients redeeming within 30 days, imagine how much businesses benefit from these cards. However, most gift vouchers today do not expire. People have also gotten smarter and have learned many tricks to make the most of the gift cards they receive. As the competition gets tighter, most of these cards come with better offers and features. Just do a little reading before you buy them to make sure the recipient will really enjoy your little gift.