Gift cards are given to people as a gift or used as promotional material by a company to promote their brand by offering discounts to people who use the card. It is loaded with money, which is the face value of what it says. It can be described as a prepaid card and most are issued by a major credit card company.
These instruments, when issued by a credit card company, would normally contain the company logo above it and this acts as a stamp of authenticity for the card. It also suggests that the card can be used wherever that particular brand is accepted as described by the logo. For example, if it is visa issued and has a visa logo, it can be used wherever the visa is accepted.
Individuals who receive cards in lieu of a gift and don’t care about the brand that the tool offered may decide to spend it elsewhere. For example, get a Sears card, but shop at JC Penny and then use it there. Some people feel guilty that the presenter of the present may be offended if the card is used elsewhere and most of the time will ignore the card until it expires, wasting the amount of money loaded on it.
Are gift cards traceable? Short answer, yes, any prepaid money tool is traceable because it has numbers and identifying characteristics that allow you to use it for a transaction. However, that doesn’t mean the buyer can determine who is using it. If the gift was purchased in cash, the issuing company will have the information that the card number, for example 54 was used to make purchases at this particular store, but would not know who used it.
Also, if the card was purchased with a credit card, the card issuer will have the information that the gift card purchased with Mr. Joe’s credit card was used to purchase things at some store.
In a nutshell, gift cards are traceable by the issuing company regarding their use; however, determining who exactly used it would require a lot of tracing and research that isn’t worth it to an individual.
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