Gift cards have become an increasingly popular option for gifting money, providing a convenient way to give back without the worry of finding the perfect gift. Whether store cards issued by a specific retailer or general purpose prepaid cards, the idea is the same: purchase a card with an amount pre-loaded on it, then give it to someone else to use as they please.

Store gift cards, sometimes referred to as closed loop cards, are designed for specific retailers and allow the recipient to use the pre-loaded amount to purchase items from that retailer. Many stores allow customers to choose the amount they’d like to load on a gift card, and some retailers even offer special deals and incentives when gift cards are purchased. Store gift cards might have an expiration date, and may not be eligible for reloading.

General-purpose prepaid cards, or open loop cards, are available from major payment networks like Visa, Mastercard, and Discover, and can be used for purchases at any location that accepts that credit network. Open loop cards also might include a PIN for use at an automated teller machine (ATM). When purchasing an open loop card, customers can select an amount to load and it may be reloadable through either a website or automated phone service.

Another type of gift card is the online or digital egift card. Such cards are typically sent via email and contain a unique code for entry at the checkout.

Gift cards provide a wide range of benefits for both the gifter and the giftee. Not only is it more convenient than carrying cash around, but it also provides recipients with the opportunity to purchase something they really want. It also takes the pressure off of the gifter, who can feel assured that their gift will be well-received. Gift cards are also a great way to reward employee performance and incentivize customers to shop.

Some retailers also offer rewards programs that involve gift cards. For example, customers who frequent a certain store might accrue points each time they make a purchase, and these points can then be used to redeem rewards like a gift card.

Whether you’re buying for a friend, a family member, or an employee, gift cards are an easy and practical gift for any occasion. With the variety of gift card options available, you can be sure to find a card that’s suitable for the recipient.