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E-Gift Cards: Are They Safe? Here are some things you should know

There is now an increasing trend among consumers to ease the tension by choosing to give digital gifts – that is, the e gift card.

Despite their popularity still skyrocketing, e gift card remain very popular among consumers, who prefer them because they are easy to send, quick to purchase and have a nice aesthetic appeal, according to transaction firm InComm. In spite of the stigma associated with giving a gift that cannot be placed inside a gift box, it appears that the stigma is fading away.

InComm said that 63% of consumers who purchased gift cards online (not in a store) last December decided to skip the plastic and send the gift electronically instead – an increase of 57% from the previous year. Ninety-five percent of those between the ages of 18 and 25 said they were more likely to purchase digital gift cards than they were two years ago or three years ago.

There is no doubt that digital gifts are becoming more popular as time goes by.

E-Gift Cards: Are They Safe?

A major security risk associated with e-gift cards is that all that stands between a criminal and money is a lengthy alphanumeric code that can be stolen simply by cutting and pasting it into the appropriate fields. Several analysts have predicted that criminals will turn their attention to EMV chip-enabled credit cards in the coming years as the United States begins its long transition to EMV chip-enabled credit cards that feature chip technology.

“As the United States begins implementing EMV to reduce payment card fraud, another type of card – the online gift card – could see its fraud risk skyrocket.” However, in the survey conducted by InComm, consumers were actually cited as the main reason for making these digital purchases because they were concerned about security. This is because most electronic gift cards come with an e-registration feature that makes it much easier to keep track of the value if the card is lost or stolen. It is important to note that physical cards are useless when they are lost unless they have been registered with the retailer.

Electronic gift cards raise other concerns as well: e-gift cards are easy to use online, but they can become a hassle to use in physical stores. InComm says that, although some consumers are required to print out evidence of the e-gift card to use it, an increasing number of consumers care about being able to store and spend e-gifts on their smartphones. Ninety-six percent of the recipients said they were “interested” in storing the cards on their phones due to the study.

E Gift Cards: How to Give Them?

Ensure the recipient receives the digital gift card, as it could end up in their spam folder. See if you can get credit immediately if you receive a digital gift card. You can redeem a gift card immediately by storing the value on your account until you are ready to use it. The money could be safer since you won’t lose track of the email with the code.

You should also guard your email account at this time. You may consider changing your email password because hackers know our inboxes are filled with gift card codes. You can monitor your credit report for signs your identity has been stolen if you suspect your personal information has been compromised.

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