Physical vs Digital (E-Code) Gift Cards: What's the Difference?

You are ready to buy a gift card, but there is one choice to make first: physical or digital?

Both can carry the same monetary value. Both can be used to make eligible purchases. Yet, the way you receive, store, and use them can be quite different.

A physical gift card is usually a plastic card delivered in person or by mail. A digital gift card, often called an e-gift card or e-code, is delivered electronically through email, an app, or another digital channel.

So, which one should you choose?

The answer depends on how you plan to give, receive, store, and use the gift card. This article explains the differences between physical and digital gift cards and what to consider before choosing one.

 If you want to understand the basics first, read what a gift card is and how it works. It explains how gift cards store v alue, how they are used, and the different factors that can affect how a gift card works. 

What Is a Physical Gift Card?

A physical gift card is a tangible card, usually made of plastic, that contains or represents prepaid value.

It may look similar to a bank card, but it works differently. The value is normally tied to the card rather than a personal bank account.

Depending on the issuer, a physical gift card may contain:

• Card number
• Barcode
• PIN
• Security code
• Expiry information, where applicable
• Instructions for checking the balance

The recipient can keep the card and present it or enter its details when making an eligible purchase.

Physical gift cards are commonly purchased from stores, retailers, supermarkets, or other authorised sellers.

What Is a Digital Gift Card or E-Code?

A digital gift card is an electronic version of a gift card.

Instead of receiving a plastic card, the recipient receives information needed to access or redeem the value.

This may include:

• A gift-card code
• PIN
• Redemption link
• Barcode or QR code
• Instructions for using the card

Digital gift cards are commonly delivered through email, an app, SMS, or another electronic method, depending on the issuer.

For example, someone can purchase a digital gift card online and have the redemption information sent directly to the recipient.

There is no physical card to carry. The important information is the digital code or other redemption details.

Physical vs Digital Gift Cards: What's the Difference?

The biggest difference is how the gift card is delivered and stored.

1. Delivery

Physical gift cards need to be collected, handed over, or shipped.

Digital gift cards can usually be delivered electronically.

This makes digital cards useful when the sender and recipient are in different locations.

2. Storage

A physical card needs to be kept somewhere safe.

A digital gift card can be stored in an email account, mobile device, app, or other supported location.

However, digital storage does not remove the need for caution. A person who obtains a usable gift-card code may be able to redeem the value.

3. Speed

Physical cards can take time to purchase or deliver if they are being shipped.

Digital gift cards can often be delivered electronically after purchase.

The actual delivery time depends on the issuer or seller.

4. Gifting Experience

Physical cards can feel more like a traditional present because the recipient has something tangible to open and keep.

Digital gift cards are more practical for remote gifting. You can send the gift without meeting the recipient or arranging physical delivery.

5. Risk of Physical Loss

A physical gift card can be lost, damaged, or misplaced.

A digital gift card does not have the same physical-loss risk. However, losing access to the email account, device, or message containing the code can create a different problem.

6. Redemption

The redemption process depends on the issuer.

A physical card may require the recipient to enter the card number and PIN online or present the card at a store.

A digital card may require the recipient to enter an e-code or use a digital redemption link.

Always follow the issuer's instructions.

Physical Gift Cards: Advantages and Limitations

Physical gift cards can be a good choice when the presentation of the gift matters.

Advantages

1. Tangible gift: The recipient has something physical to receive.
2. Easy to hand over: You can give the card directly to someone.
3. Useful for in-person purchases: Some cards are designed for use at physical stores.
4. Traditional gifting: A physical card can feel more personal for birthdays, celebrations, and other occasions.

Limitations

1. Can be lost or damaged: The physical card needs to be kept safely.
2. Delivery can take longer: Shipped cards may require additional delivery time.
3. Less convenient for remote gifting: You need to get the card to the recipient.
4. Physical storage: The recipient needs to keep the card until the value is used.

Digital Gift Cards: Advantages and Limitations

Digital gift cards are useful when speed and remote delivery are important.

Advantages

1. Electronic delivery: The card can be sent without physical shipping.
2. Convenient for remote gifting: You can send it to someone in another location.
3. Easy to store digitally: The code can be kept in a supported email account, app, or device.
4. Useful for online purchases: Many digital gift cards are designed for online redemption.

Limitations

1. The code must be protected: Anyone with usable redemption information may be able to access the value.
2. Email or device access may be required: Losing access can make redemption difficult.
3. Digital delivery is not always instant: Delivery times depend on the issuer or seller.
4. Region restrictions may apply: A digital card can still be limited to a particular country or market.

Which Is Better: Physical or Digital Gift Cards?

Neither format is automatically better.

The right choice depends on what you need.

Choose a physical gift card if:

• You want to give someone a tangible present.
• You plan to hand the card to the recipient.
• The recipient prefers physical cards.
• The card is intended for use at a physical store.

Choose a digital gift card if:

• You need to send the gift remotely.
• You prefer electronic delivery.
• The recipient will use it online.
• You want to avoid physical shipping.
• You need the gift-card information electronically.

The card's specific terms still matter more than the format alone.

Can Both Physical and Digital Gift Cards Be Open-Loop or Closed-Loop?

Yes.

This is an important distinction.

Physical vs digital describes the format or delivery method.

Open-loop vs closed-loop describes where the card can generally be used.

For example, a physical store gift card may be closed-loop because it is intended for that retailer.

A digital Visa gift card may be open-loop because it can potentially be used at participating merchants that accept the network, subject to the card's terms. If you have a Visa gift card you no longer need, Hara provides a dedicated option to sell a Visa Gift Card for Naira.  

So, these are two different ways of classifying gift cards.

For more information, see the article on open-loop vs closed-loop cards.

Frequently Asked Questions

1. What is the difference between a physical and digital gift card?

A physical gift card is usually a tangible plastic card, while a digital gift card is delivered electronically as a code, link, or other digital redemption information.

2. Is a digital gift card the same as an e-gift card?

Generally, yes. Digital gift cards and e-gift cards are commonly used to describe gift cards delivered electronically.

3. Are digital gift cards better than physical gift cards?

Not necessarily. Digital cards are convenient for electronic and remote delivery, while physical cards may be preferable for traditional gifting or in-person use.

4. Can a digital gift card be used in a physical store?

Some can. It depends on the issuer and the redemption method supported by the store.

5. Can a physical gift card be used online?

Some can. If the issuer supports online redemption, the recipient may be able to enter the card number, PIN, or other required information during checkout.

6. Can a digital gift card expire?

Yes, depending on the issuer and the card's terms. Check the specific gift card for applicable expiry conditions.

7. Can you sell a digital gift card?

Some digital gift cards can be exchanged through gift-card trading services . The service must support the specific card, region, and other requirements.

8. Can a physical gift card be converted to cash?

Some physical gift cards may be accepted by gift-card exchange services. The available exchange value depends on the card and the service.