How gift cards work: buying, redeeming, sending and refunds

How gift cards work: buying, redeeming, sending and refunds
Polina Gankina
How-to
3 Min read
How gift cards work, how to buy gift cards online, how to send a digital gift card and whether gift cards are refundable. A plain-English guide to digital gift cards.
How gift cards work: buying, redeeming, sending and refunds

Gift cards are one of the most popular ways to give, and to pay, because they're simple, flexible and let the recipient choose. Here's how gift cards work, how digital gift cards differ from plastic ones, how to send one and whether gift cards can be refunded.

How do gift cards work?

A gift card carries a set amount of prepaid value tied to a unique code or PIN. When you redeem it on the relevant service (a streaming platform, a game store, a marketplace), that value is added to your account as credit and spent against your purchases. Most gift cards are single-brand (they work only with one retailer or service), and the value is used until it runs out.

Digital gift cards work exactly the same way, except the code is delivered by email instead of printed on plastic. There's nothing to post and nothing to lose down the back of the sofa. You redeem the code and the credit lands on your account within minutes.

How to buy gift cards online

Buying a gift card online is quick:

  1. Choose the brand you want, for example a Netflix, Steam, Google Play or Amazon gift card.
  2. Select the amount.
  3. Pay using one of the multiple payment options at checkout.
  4. Receive the code by email, ready to redeem or forward to whoever you're gifting.

At Koomalooma you can buy digital gift cards for a wide range of brands with instant email delivery, handy for last-minute presents or for topping up your own accounts.

How to send a gift card

A digital gift card is easy to give. When you buy one online you receive the code by email, and you can forward that email to the recipient or copy the code into a message. Because the card only becomes active when it's redeemed, you can send it whenever suits, including scheduling it for a birthday or holiday. For a personal touch, add a short note explaining which brand it's for and how to redeem it.

Are gift cards refundable?

As a rule, gift cards are not refundable once they've been purchased, and definitely not once the code has been revealed or redeemed, because at that point the value can already have been used. This is standard across the industry and helps prevent fraud. Before you buy, double-check three things: the brand is the one you want, the amount is correct, and the country/region matches the recipient's account, since most gift cards only work in the country they were issued for. Getting those right up front avoids the most common reasons people wish they could return a card.

Popular gift cards to start with

If you're not sure which to choose, the most widely used digital gift cards cover streaming, gaming and shopping: a Netflix gift card for film and TV, a Google Play gift card for apps and games, or a Steam gift card for PC gamers. Browse the full range and buy gift cards online at Koomalooma with instant delivery.