Blog

5 May 2025

Common Myths about Gift Cards Debunked

Gift cards have become one of the most versatile and appreciated gifting options in both personal and professional settings. However, despite their popularity, several misconceptions persist, and companies often hesitate to include gift cards in their corporate gifting strategies. These myths can hinder businesses from leveraging the full potential of gift cards as effective and thoughtful solutions for clients, employees, and partners.

Myth 1: Gift Cards Are Impersonal

The Myth: Gift cards lack thoughtfulness and don’t reflect genuine appreciation.

The Reality: The idea that gift cards are impersonal stems from the misconception that they involve no effort or thought. In reality, gift cards offer recipients the flexibility to choose something they truly value, making them one of the most considerate gifting options.

For businesses, customizable gift cards allow companies to add logos, personalized messages, or branding elements, making the gesture more meaningful. A recent survey by Research Nester found that personalized and customized gifting is popular in more than 55% of companies.

Myth 2: Gift Cards Are Only for the Holidays

The Myth: Gift cards are relevant only during festive seasons like Christmas.

The Reality: While gift cards see a surge in popularity during the holiday season, they are far from seasonal. Businesses can use gift cards year-round for various purposes, such as employee recognition, client appreciation, incentive programs, or milestone celebrations.

In fact, some of the most popular occasions for gift cards include birthdays, holidays, graduations, Mother’s Day, and Father’s Day. In 2024, 56% of consumers gave gift cards for milestone events such as weddings, anniversaries, and baby showers, underscoring their versatility for various occasions.

Myth 3: Gift Cards Expire Too Quickly

The Myth: Recipients won’t have enough time to use the gift card before it expires.

The Reality: Federal regulations, such as the Credit Card Accountability Responsibility and Disclosure (CARD) Act, ensure that most gift cards issued in the U.S. cannot expire for at least five years. Additionally, many businesses now offer gift cards with no expiration dates at all.

For corporate clients and employees, this flexibility ensures they have ample time to redeem the card without the pressure of a looming deadline, making it a stress-free gift.

Myth 4: Physical Gift Cards Are Outdated

The Myth: Physical gift cards are old-fashioned compared to modern digital options.

The Reality: While digital gift cards have gained popularity, physical gift cards remain the biggest seller. Many consumers still prefer tangible gift cards because they offer a more personal and memorable experience.

Consumers purchase gift cards for themselves with an average value of $51.93. The U.S. gift card market is expected to generate $324.5 billion in revenue in 2024 and grow 17.7% annually. This growth highlights that physical gift cards continue to dominate despite the rise of digital alternatives. Hand-delivered or elegantly packaged physical gift cards often leave a lasting impression. 90% of people consider physical gift cards an appropriate item to gift, highlighting their enduring appeal.

Myth 5: Gift Cards Don’t Provide a Tangible ROI

The Myth: Gift cards don’t offer measurable returns on investment for businesses.

The Reality: On the contrary, gift cards often lead to measurable outcomes in customer loyalty, employee retention, and client satisfaction. For example, a client who receives a thoughtful gift card is more likely to continue their business relationship, while employees rewarded with gift cards show higher engagement levels.

Gift Cards Market size was over USD 1.15 trillion in 2024 and is projected to reach USD 9.05 trillion by 2037, growing at around 17.2%. This makes gift cards a strategic investment in both relationships and profitability.

Gift cards are not just convenient; they are thoughtful, flexible, and effective solutions for corporate gifting. By debunking these common myths, businesses in the U.S. can confidently incorporate gift cards into their strategies, ensuring satisfaction for clients, employees, and partners alike.

From their customizable nature to their wide-ranging appeal, gift cards are far from generic or impersonal. Instead, they offer businesses a practical and appreciated way to show gratitude, recognize achievements, and build stronger relationships—all while avoiding many of the logistical challenges associated with traditional gifts.

About Plasticard – Locktech International

PLI is the largest Closed Loop Gift, Loyalty and Hospitality card manufacturer in North America. PLI has been in business for over 30 years, specializing in end-to-end card marketing solutions including card production, design, packaging, displays, consulting and fulfillment services and capabilities. PLI has three manufacturing facility locations including two in Las Vegas, NV and one in Asheville, NC.

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