Gift Certificates

Gift certificates are another term used which means the same as gift vouchers. Gift certificates can be issued by retailers usually in exchange for legal tender. Doing this gives the retailer an advanced payment for a future purchase. This benefits the retailer as it gives them a payment before they would usually receive it, allowing interest to grow on the payment. Moreover it almost guarantees a futures sale which may not have been purchased from that store if it had not been for the gift certificates. This sale is likely to be for a higher value than the value of the gift certificates therefore more revenue is obtained.

Economically, gift certificates and gift vouchers are of little benefit to the consumer however they do offer some social benefits. It can be argued that cash is the best possible gift for any occasion as if allows the receiver to use the money in whichever way they desire, including ways which may be more important than those which are offered by a stand gift, such as paying fuel bills. In the eyes of some however, providing cash as gift can be seen as lazy. Some believe is shows a lack of thought went into the gift or that the giver did not spend time purchasing the gift, rather they simply used some cash they had to hand.

Gift certificates or vouchers give a balance between the freedom of cash and the thought that goes into a purchased gift. Although gift certificates do not provide the freedom to purchase that legal tender offer, as they can only be used to purchase from a single or small number of retailers, they still offer a reasonable amount of choice. Although less thought it required to purchase a gift certificate then a product, it still demonstrates that the sender receiver has gone out of their way to collect the gift.