Types of Gift Cards in the United States

Last updated: April 12, 2026

Retail Store Gift Cards (Closed-Loop)

Retail store gift cards, also known as closed-loop gift cards, are issued by a specific retailer and can only be redeemed at that retailer's stores or website. These are the most common type of gift card in the US.

Key Characteristics:

• Can only be used at the issuing retailer
• Typically do not have purchase or maintenance fees
• Available in fixed or variable denominations
• Protected by federal law against expiration for 5 years
• Available as physical plastic cards or digital/e-gift cards

Common Examples:

Restaurant Gift Cards

Restaurant gift cards are a subset of closed-loop cards designed for use at dining establishments. They can be for individual restaurants, chains, or restaurant groups.

Key Characteristics:

• Valid at specific restaurants or restaurant chains
• Some restaurant groups offer cards valid across multiple brands
• Usually available in denominations from $10 to $200
• Can typically be used for dine-in, takeout, and sometimes online ordering
• Subject to the same federal consumer protections as retail gift cards

Prepaid Debit Gift Cards (Open-Loop)

Prepaid debit gift cards, also called open-loop gift cards, are branded with a major payment network (Visa, Mastercard, American Express, or Discover) and can be used at any merchant that accepts that payment network.

Key Characteristics:

• Accepted at millions of locations nationwide
• May have a one-time purchase fee (typically $3-$7)
• Some may have monthly maintenance fees after a period of inactivity
• Cannot typically be used for recurring payments or subscriptions
• May require registration for online purchases
• Protected by federal CARD Act regulations

Digital / E-Gift Cards

Digital gift cards (also called e-gift cards) are delivered electronically, usually via email or text message, rather than as a physical plastic card.

Key Characteristics:

• Instant delivery — ideal for last-minute gifting
• Contain a unique code for redemption
• Can be sent directly to the recipient's email
• Same consumer protections as physical gift cards
• Available from most major retailers
• Can often be printed or added to a mobile wallet

Comparison Chart