[ChrisMarshallNY]

In the US, gift cards seem to be popular with consumers.

I regularly see people in line at the supermarket, buying gift cards. I notice, because it’s a discrete workflow, that stands out.

I doubt they are all feeding scammers.

I think that charities often solicit gift cards.

[stavros]

I'm sure they're not all scammers, but what's the upside to the consumer? Why not just give the money directly? Seems to me like all the upside is on the company, and all the risk is on the user.

[generic92034]

In some countries, where people receive conditioned social security benefits, just sending the money via bank account will have disadvantages (at worst the next sum from social security is lowered 1:1 by the money received and they try to keep it that way). So, if you do not meet the gift receiver in person and do not trust the postal service with cash, a gift card can be a solution.

[cedilla]

For some reason, many people think that gifting money is gauche, but gift cards are somehow okay.

[AnthonyMouse]

The theory is that if you give someone cash, they're just going to put it in the bank or buy gas with it, but if you give them gift card to e.g. a game store then they're going to buy a game, without you having to know which game they want.

It's the same premise as buying someone any gift instead of just giving them the money so they can buy whatever they want.

[stavros]

I don't understand, what's the benefit to the recipient if I limit their choice for them?

[queenkjuul]

Arguably, they'll be happier with the video game than with a tank of gas, which you've ensured they'll choose by not giving them the cash

Edit to add: kids often don't have bank accounts, i mostly received gift cards as a child, from relatives who wouldn't want to mail cash and couldn't give me cash in person. On a dark note, giving a kid a gift card to a toy store makes it harder for the parents to steal it for themselves.

The whole practice originates from "gift certificates" where you'd maybe go to your favorite spa and get a gift certificate to give someone, so that the spa treatment is the gift you're giving, but the recipient redeems it whenever they want. That just got abstracted to non-service gifts as well, with the same idea ("treat yourself to a new video game, whichever and whenever you feel like it" -- that's the gift, facilitated by the card)

[nmcfarl]

Also for kids at least, sometimes they really will be happier with less choice. Sometimes kids make bad decisions and limiting choice to good options is helpful.

Additionally the inverse is true. Sometimes kids choices are restrained, and they really would like to do a thing they are not allowed to, and gift cards offered them away to do that. Case in point: my tween figured out that we don’t let him buy in game currency for any the games that we do let him play, however, when a relative gives him a gift card, we let him redeem it, making gift cards incredibly popular gifts.

[rvnx]

https://youtu.be/xj-7_YU-KIs

[badpun]

I joke that a $100 gift card is an "inferior $100 bill", because you can spend the bill anywhere, but the gift card only in one place. People give them as gifts because it shows marginally more effort than just giving cash.

[ChrisMarshallNY]

I agree, but, still, it is what it is.

[stavros]

No argument there, but I'm sure the loads of marketing on how "cash is out, gift cards are the new hip thing" didn't hurt.