Have you received a Visa® gift card in the past? If so, you may or may not have had a good experience. While these cards are designed to make purchases anywhere Visa is accepted, they have limitations and are not always that easy to use.
Frustrations with the cards are common, so we're providing a few Visa gift card alternatives that may fit your shopping habits better. Whether you want to spend $50 or $500, this list of Visa gift card alternatives can help.
Why look for an alternative to Visa gift cards?
What makes the cards so frustrating? It depends on the person, but these are the most common complaints:
- Activation issues. Some consumers find them difficult to activate, and some cards require you to register them online before you can use them for internet shopping.
- Debit dysfunction. If your card came with a PIN, it may be difficult to change or may not work with a retailer's PIN pad at all.
- High fees. After activation fees, hidden fees (like inactivity fees or transfer fees), and international fees, there may not be that much left to use on a smaller card of $25 or less.
- Awkward to use. Small cards with only a little money left can be difficult to use. Consumers may find it hard to buy something for just a few cents or take the time to split a purchase into multiple payment methods.
- Not reloadable. Once the card is empty, you can't refill it with more money.
- No rewards. Visa gift cards do not offer cashback or loyalty rewards like some credit or debit cards offer.
- Poor customer support. Consumers can find it hard to get a live customer service representative to help with some Visa gift cards, or they may have to wait for long hold times on the phone or in an online chat.
Because the person receiving the Visa debit card may not be the purchaser, it can be hard to resolve problems without showing a receipt or returning to the store that sold the card. These complications are why some people would rather get a cash gift in another way.
Best prepaid debit card and gift card alternatives
If you've written off the traditional Visa gift card because it's difficult to use, you still have options. Here are some alternatives to consider, along with their advantages. These low- and no-fee cards are very popular and easy to spend.
Netspend Prepaid Card
The Netspend Prepaid Card can be used anywhere that accepts Visa, including major retailers, small shops, and online merchants. It requires no credit check1, has no minimum balance requirement, and charges no activation fee2. Cardholders even get access to cashback offers with select merchants through the Netspend Rewards3 program. When they buy from select merchants, they can earn up to 10% back or more directly to their card account.
The prepaid debit card even comes with purchase cushions. If you're short on cash and need to make a purchase, you may get covered for up to $10 with Purchase Cushion4 to help the purchase go through. Then, you'll pay it back when you reload your card. Many Netspend reload locations5 don't charge fees for reloading, either.
Merchant gift cards
If the gift recipient is shopping at places like Amazon, Target, or Walmart, a gift card specifically for that merchant may make sense. These cards have no fees and can be issued in increments as little as $5. (Amazon digital cards can be issued in almost any amount, even to the penny, making them one of the best digital gift cards to consider.)
Choose to have a physical card issued and sent through the mail or delivered via email as a digital code. Cards from these three merchants don't expire and can even be used for third-party brands through their online marketplace.
Digital service gift cards
Do you spend a lot on Apple app purchases or Steam video games? You might consider purchasing a digital gift card for these services. Since many people spend steadily on these digital items, getting them a gift card can help them pay for items they use and love.
Depending on the online service, you can purchase the digital card from the service provider and send it to your friend via email or text message. When they receive it, they can apply it to their account and instantly enjoy the credit for their next purchase. Whether it's a monthly membership fee, like Microsoft Game Pass Ultimate, or for add-ons in their favorite Apple Store games, there's probably an option that works best for the people in your life. Not sure what games or services they love? Just ask!
How to choose the right alternative
If you've decided against giving a Visa gift card, you still need to pick a substitution. These tips can help you choose the right option for a variety of situations.
- Look for no or low fees. If you're OK with paying a small fee for activation, go ahead and do it. Just don't expect the person receiving the card to have to pay. Fees that cut into a gift card's balance make it difficult for the person to get the full value of their gift.
- Give enough to matter. Think about how much someone would have to spend at a retailer to enjoy their experience. Sending a $25 gift card to a place that only sells $200 purses puts them in a position to have to spend some of their own money or not get to use the card at all. Think through what things cost, including tax and shipping, then give enough to cover a reasonable purchase.
- Consider going digital. Today, most people enjoy shopping online and would rather get their gift instantly, if possible. No-fee gift cards like those from Amazon, Walmart, and other major retailers can be purchased and sent via email within minutes. It gives you the chance to gift someone without the hassle of postage and sending a card through the mail. You also won't have to worry about it getting lost. (Some gift card services, like those from Amazon, notify the giver when the card is received and claimed.)
- Check for bonus offers. Digital gift cards for services like video games or streaming services may come with extra perks. For example, buying a gift card good for 10 months of a movie service may come with two extra free months, so you're paying less than if you purchased the months one at a time.
- Get big box breaks. Membership clubs like Costco and Sam's Club also sell restaurant, digital service, and business gift cards at a discount from their face value. You can often get a $50 gift card for just $45, giving you even more value for the price.
- Consider geography. Different parts of the country have different retailers and restaurants, and what may be a common brand in one place may not be available in another. Before you pick a card from a big brand, look to see if there are locations near the recipient. If you're unsure, pick a card that can be used at multiple businesses or can be used 100% online.
- If in doubt, choose cash. Even if you think you know someone very well, there's a risk in buying a gift card to a store or service. It locks them into shopping at a place so they can get the value of the card. To avoid this, consider a prepaid debit card that can be used like money. They can then use it anywhere, for anything, without the pressure to buy from the retailer of your choice. It's one of the best gift cards for cash lovers!
- Pick a safe storage spot. Most prepaid cards don't expire for at least five years from issuance, giving the recipient a very long time to use them. Look for cards that can be quickly added to an online account or digital wallet so the recipient doesn't have to dig around in a wallet to access their funds. Even if you like the idea of a plastic card, having a digital storage solution keeps it accessible and ensures it won't be lost until it's time to spend.
Why buy a better gift card?
Visa gift cards may seem like a solid choice for gifts or making purchases while traveling. However, when it comes time to actually use the card, people have had mixed experiences.
To ensure your gift card truly feels like a gift (and not a hassle), look for other options. The Netspend Prepaid Card is ideal for those who want to spend at any place they choose. Otherwise, buying a card directly from your merchant of choice works as well.
Remember, the best gift card is the one that will be used. Get to know the recipient and how they shop to ensure your gift card pick can be fully appreciated.
