Online shopping has never been easier as many Nigerians now depend on digital payment systems to transact business, from paying for subscriptions to ordering products from ecommerce sites and buying apps. Making sure that payments are secure has also become more important than ever due to the increase in cybercrimes and internet fraudsters.
Two payment options are commonly used for online transactions. Gift cards and debit cards, and many people are wondering, which of them is safer for online shopping? Despite the fact that both can perform the task, they offer different levels of security, privacy and control. While one is linked directly to your bank account, the other serves as a prepaid shield that reduces your exposure.
Before that next online checkout, let’s break down what you need to know about gift cards and debit cards and which one is the best option for online shopping.
What is a Gift card?
A gift card is a physical or digital prepaid payment card that has a predetermined amount of money loaded onto it and can be used to buy products or pay for services from retailers, platforms or payment portals. Instead of paying with cash or directly from your bank, you simply redeem your gift card’s unique code at checkout and the purchase amount is subtracted.
Gift cards are designed to be easy, flexible and practical. They are commonly used in paying for digital services, buying online games, in-app purchases, paying for subscriptions and online shopping. Unless the card is reloadable, it will no longer be useful after its value is exhausted.
Types of Gift cards
Retail-specific gift cards: these cards are exclusive to a specific brand like Tesco, Walmart or iTunes. These types of gift cards can only be used to buy from the brand or shop, pay for streaming service or buy apps.
Open-loop gift cards: These are network-branded prepaid cards, which function similarly to a standard payment card but are only usable up to the loaded balance on various websites or retail locations.
Physical gift cards: these are plastic cards purchased at kiosks, retail stores, or supermarkets. The redemption code is typically hidden behind a scratch panel.
Digital gift cards: digital gift cards are sent electronically by SMS or email and include a code that can be used online. Due to their speed and ease of sending, they are currently the most commonly used type of gift card
How do gift cards work?
Gift cards are very easy and straightforward to use, follow these simple steps:
- Receive or buy a gift card
- Get the redemption code
- Enter your code during checkout at a participating store or website
- The price of product or service purchased is deducted from your card
Some platforms let you use the gift card in conjunction with another payment method if the cost of your transaction exceeds the remaining balance.
What is a debit card?
A debit card is a bank-issued payment card that is linked to either your savings or current account. The money is promptly deducted from your available bank balance whenever you use it to pay for something online, make a transaction, or withdraw cash.
Debit cards only enable you to spend the money that is already in your account, as opposed to credit cards, which let you borrow money and pay it back later. Because of this, it is among the most widely used payment methods for regular transactions.
How does a debit card work?
Using a debit card is quite simple
- A debit card is issued by your bank and linked to your account
- When making a payment, you either insert your card or enter your card information
- Your bank confirms the transaction
- The amount is deducted from your account
What are the differences between a gift card and a debit card?
| Feature | Gift card | Debit card |
| Linked to bank account | No | Yes |
| Spending limit | Fixed prepaid amount | Depends on your bank account balance |
| Risk if stolen | Risk is limited to the balance on the card | If stolen, it could expose the entire money in your account |
| Personal information required | Usually minimal information is required | Your full detailed information is required |
| Reloadable | Sometimes | Yes |
| Fraud recovery | Often difficult to recover once stolen | The bank may be able to trace it. |
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Why are gift cards safer for online shopping?
Gift cards often provide an added layer of safety compared to debit cards. Because they work as prepaid payment options rather than direct bank access methods, they help limit both financial exposure and privacy threats.
Here are some of the reasons why online shoppers prefer gift cards:
No bank information required
When shopping with your gift card you do not share any sensitive information, you simply redeem the code at the checkout. Unlike a debit card which requires you to input your card number, expiry date and CVV. These details can be stolen or used for unauthorized transactions if the website is compromised.
Limited risk
Controlled financial risk is one of the main benefits of using gift cards for online shopping. If the website is compromised, you only lose the value that is loaded on the card and your savings are protected. This built-in spending limit helps to control your spending and manage your finances.
Protection from unfamiliar websites
Not every online store is trustworthy, you need to be careful especially if you’re buying from smaller vendors or digital service providers you have never used before. With gift cards you can load a small amount unto it and safely test new websites, to ensure you will be protected if something goes wrong
Increased privacy protection
Most ecommerce sites store your payment information for future purposes if you make a purchase. This information can be stolen if their system is hacked. With gift cards, the amount of information you give is limited since it is not connected to a bank account.
Safe for multiple users
Gifts cards can be used by other members of your family, it is a great way to regulate the spending of teenagers for example as they can only spend what is loaded on the card.
Simple rule for safer online payment
It is important to remember that gift cards are not totally risk free and should be handled carefully even though the associated risk is less than what you get with a debit card. It is almost impossible to get your money back if someone manages to get their hands on your gift card code and uses it. This is why you should only buy cards from reliable vendors like Mintyn.
A simple rule for safer online payments is to use debit cards for trusted websites and use gift cards for unknown, international or high-risk purchases. This balanced approach ensures that you can shop conveniently and securely online.
Pros and Cons of gift cards.
Here is a breakdown of the pros and cons of gift cards
Pros
- Gift cards help you manage your budget when shopping online
- There is less exposure to financial risk
- It is perfect for digital services and subscriptions, paying for streaming services, games and apps.
- It can be used to teach kids financial responsibility
- It lowers the risk of identity theft as very little personal data is needed.
Cons
- Gift cards only work on specific platforms, not all retailers accept them
- If stolen, it is difficult to retrieve especially if the code has been used
- You cannot withdraw unused funds easily
- When exchanging gift cards for cash, exchange rates apply.
Conclusion
Gift cards typically provide a safer option for online shopping if security and privacy are your main priorities because they limit your exposure and potential losses. Debit cards offer more capabilities but require more security and they are the ideal option if your goal is convenience and flexibility
For many online shoppers, the best strategy is to use debit cards on trusted websites and use gift cards for in-app purchases and subscription payments, that way you enjoy both safety and convenience.
Visit the Mintyn marketplace today to choose from our variety of gift cards and enjoy an amazing shopping experience.
