Mastercard Gift Card: Everything To Know


A gift card is a mode of payment that can be used at a store or at a business related to that store instead of cash. It is typically issued as a prepaid credit card from retailers or financial institutions and has a stored value. A mastercard gift card is also known as a gift certificate, gift voucher, and gift tokens in Australia. Gift cards can also be distributed as incentives or presents by employers and groups. In addition to providing them as part of marketing campaigns, merchants and marketers can also give them away as part of a cash-back program to entice customers to come into the store or to return.

Mastercard Gift cards are usually restricted to specific retail locations and may not be cashed out; they may also incur additional fees. They expire after a particular period. The most commonly used cashback marketing tools are American Express, MasterCard, and Visa gift cards, which do not require exclusive use at specific merchants.


mastercard gift card could look like a credit card or have a particular theme printed on a piece of plastic, the dimensions of a credit card. The card is typically identifiable by a unique number or code rather than by a person’s name, so anyone can use it. They have an electronic permission system that is supported online. Some gift cards allow for reloading by payment and subsequent use.

Mastercard Gift Cards may have a magnetic stripe, barcode, or serial number that an electronic credit card reader may read. Many cards are worthless until purchased, at which point the cashier inserts the value the consumer wants to load onto the card. Rarely is this amount kept on the card; instead, it is recorded in the merchant’s computer and cross-linked to the card ID.

The information is encrypted to prevent copying. They cannot be scanned or written with standard equipment because the magnetic strip is frequently positioned differently than on credit and debit cards. Other gift cards might have a fixed value and require a phone call to activate.

Gift certificates can also be made specifically for each recipient to match their needs. A personalised present or an expression of gratitude for an employee can be created by adding a particular phrase or name to the front of the card.

Types of Gift Cards Available

Open loop and closed loop cards are the two types of MasterCard gift cards. Unlike the latter, provided by a particular store or restaurant and may only be redeemed by the issuing provider, the former are issued by banks or credit card companies and can be used at several retailers. 

However, the latter has fewer issues with fees and card value deterioration. Since the Australian Government implemented the rules related to the protection of gift card buyers, card value decay has been less of a problem. The new law places restrictions on both inactivity fines and card expirations.

From the buyer’s perspective, a gift card is a present provided instead of an item the recipient might not require, while sending cash as a present might be viewed as unacceptable on social grounds. Gift cards are very well-liked in Australia. In 2021, they were the second-most-given present by customers, the most-wanted present by women, and the third-most-wanted present by men. Gift cards are becoming common because they save the giver from deciding on a specific gift.


In either scenario, the gift card would be purchased by the giver, who would also be required to pay a purchase or activation charge, and the receiver would utilise the card’s value in a subsequent transaction.