We will explain the differences between a gift card and a gift certificate in this post.

Gift certificates were once a common marketing tool used by owners of physical stores to advertise their brands. However, as gift cards have become more popular in online buying, things have altered, leaving people confused about the differences between the two. Now, let’s define a gift certificate. What’s a gift card, anyway?

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In essence, the objective of these two gift choices is the same. However, the true distinction between them frequently comes down to the issuer’s degree of flexibility and the particular laws and regulations that go along with it.

We will discuss these key differences in this essay. Gift cards are more often used for online purchases, so we’ll also walk you through the three easy steps of setting one up in WooCommerce. Now let’s explore it in more detail!

An Overview of Gift Cards and Certificates

The history of gift certificates dates back to the 1930s. But big department shops kept them to themselves for a select few at that time.

Gift certificates really came into their own as a marketing tactic in the 1970s.

McDonald’s introduced a Christmas gift voucher program that was crucial to this change. Other stores, eateries, and retailers were enthused by this action and soon adopted the tradition of providing gift cards to the general public.

When the upscale department shop Neiman Marcus saw how popular and appealing gift vouchers were, he came up with an extremely clever concept. They made the decision to produce gift cards, which are even better.

Compared to the traditional paper certificates, these cards were more easier to use and were composed of durable plastic that would not easily rip or wear and tear.

This clever creation marked the beginning of a noteworthy trend. Starbucks and other well-known companies joined the gift card frenzy. Reloadable gift cards were actually originally introduced by Starbucks in 2001:

At this point, the whole gift card craze started to gain traction. MarketWatch reports that gift card sales increased from $80 billion to an astounding $124 billion between 2007 and 2014. That’s a sizable population that is both giving and receiving these practical tiny plastic gifts!