Q&A with GoGift: Why Prepaid Cards Are Holding Your Business Back—and What to Use Instead

Let’s Get Real:

PREPAID EDITION

GoGift gets candid about the problem with prepaid cards—and why it’s time businesses demand more from their gifting tools to move faster, work smarter, and grow confidently at every stage.

First, let’s clear something up: confusing prepaid cards with gift cards is completely normal. They both come preloaded with money and often carry familiar brand logos—but they’re not the same.

Prepaid cards function more like debit cards without the bank. They may be reloadable, require activation, and often come with usage or inactivity fees. Gift cards, on the other hand, are typically non-reloadable, fixed in value, and designed for gifting or promotions—though their potential goes far beyond.

Because they’re sold side by side in stores, the confusion makes sense. But for businesses, the difference really matters. Prepaid cards can create friction, delays, and extra steps. Flexible digital gifting—like GoGift’s Global Gift Card—offers instant delivery, no hidden fees, and global access, making it a faster, smarter choice for modern rewards.

What's the biggest misconception about prepaid gift cards?

The biggest misconception is that prepaid gift cards—like standard Visa or MasterCard options—are universally convenient and flexible. Sure, they promise ease, but beneath the surface lie hidden limitations such as restricted acceptance, activation fees, expiration dates, and a lack of personalization. Many businesses overlook that traditional prepaid solutions often create extra work with tedious approval forms and inactivity fees, ultimately burdening both giver and recipient. According to the Consumer Financial Protection Bureau, hidden costs and restrictions significantly reduce the overall appeal and effectiveness of prepaid cards, making them far less predictable and useful than businesses might assume.

How can businesses alleviate prepaid gift card pain points with alternatives like the Global Gift Card?

The type of card you choose for your rewards or incentive strategy can have a big impact on your business. And when it comes to prepaid cards vs. gift cards, it’s easy to feel stuck. What seems like a simple decision often turns into a tangle of friction, compliance hurdles, and operational headaches. Unlike traditional prepaid cards, the Global Gift Card by GoGift eliminates the typical pain points. It delivers instantly, works across borders and currencies, and meets strict global standards for security and compliance. Recipients can choose exactly what they want from thousands of leading brands around the world—giving them freedom, not frustration. For businesses, it means less admin, fewer hoops, and a better experience for employees, customers, and partners. Personalized, digital, and seamless—it’s the kind of reward that actually feels rewarding.

Any other tips for using the Global Gift Card instead of prepaid options?

Absolutely. The Global Gift Card isn’t just for employee gifts—it’s a versatile tool that fits into nearly every stage of business growth. Use it to power customer loyalty programs, drive conversions through targeted incentives, or reward remote sales teams in real time. It also works seamlessly for international campaigns and partner promotions, thanks to instant, customizable delivery and broad global appeal. At GoGift, we encourage businesses to think beyond traditional use cases—gift cards can be lead generators, upgrade drivers, or high-impact recognition tools. According to McKinsey & Company, effective loyalty strategies today require flexibility, personalization, and innovation to truly turn customers into long-term fans, making the Global Gift Card a smart, adaptable choice for forward-thinking businesses.

I'm so glad we're finally talking about this. The topic feels so undermined! Why is that?

For too long, prepaid cards have dominated the conversation around convenient gifting, and the rewards culture has become too comfortable with their perceived simplicity. But beneath that convenience lies a pile of overlooked frustrations: limited usage, hidden fees, poor user experience, and in many cases, complicated business onboarding requirements. That’s starting to change. More companies are embracing innovative alternatives and sharing the tangible progress they bring. As NerdWallet puts it, “Gift cards are the clear winner for a straightforward gift of cash. Prepaid debit cards are more like bank accounts.” And that’s exactly the point—prepaid cards feel impersonal and clunky, while digital gift cards act more like smart, intentional cash that can drive real business outcomes. That’s why more companies are shifting to flexible, digital-first tools like the Global Gift Card to power engagement, recognition, and growth. The more we treat gifting as strategy—not routine—the more impact we’ll see.

Why do over 15,000 businesses worldwide decide to partner with GoGift?

Because GoGift understands that gift cards aren’t just one-size-fits-all—they’re powerful, strategic tools that can support every stage of business growth. From driving acquisition and boosting loyalty to enhancing employee satisfaction, the Global Gift Card helps businesses create real impact. Whether it’s making employees feel seen, customers feel valued, or partners feel appreciated, GoGift makes gifting easier, faster, and more personal. We’re proud to partner with companies that listen to their people and invest in solutions that make every experience matter.

Prepaid cards had their moment—but today’s workplace and customer landscape demands more. More speed, more choice, more care. That’s what GoGift delivers, and that’s what makes the difference between a reward that gets tossed... and one that drives real results.