Why do people buy gift cards? - Besides money laundering?

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I’d imagine the pie chart of the reason for gift card purchases looks something like this:

55% Actually given as gifts
29% Prizes at giveaways/events/raffles
10% Anonymous transactions
5% Discounted cash price
1% Grandma getting scammed by pajeet
 
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Optimistic takes:
"I know you like this stuff, but I don't know exactly what you want or need, so here, have some arbitrary amount towards stuff I'm pretty sure you'd get anyway but I don't know enough about to really shop for you"
OR
"I like this kind of stuff and I think you would too if the barrier to entry was lower."
 
We gave a hardware store gift card to my step-grandpa this year as a subtle way to tell him that he needs to get of his obese ass and do the renovations grandma has been waiting for him to do for 20+ years.
 
A lot of times I'll give cash, but sometimes I'll give a gift card if I KNOW it's something they spend money on all the time. If I give someone in my family a $50 Amazon gift card, it will be used shortly.

It just "looks" like you put a little bit more thought into it, as opposed to "oh shit I forgot well let me get my wallet out." All for appearances really.
 
Gift cards can have some value.

In a digital age, if I am going to shop at a store or online trade such as EBAY, I think a gift card is better than cash. For one, it is good for control on spending, but also cash needs to be deposited at an ATM or Bank, whereas I just type/scan the gift card in. It just makes online transactions easier than having to leave the house for it.

Gift cards can also come in the form of Master Cards or whatever. Basically, they are a general card with an amount. For those looking to keep certain transactions off their credit/debit history, this may be a nice alternative.
 
Actually, dumb as they seem they're good for a certain kind of person.

If you're dealing with someone who's kind of frugal and feels conflicted about spending money unnecessarily but they aren't actually broke, and you give them cash, they're going to just take it and put it in the bank with the rest of their money then spend it on mundane shit.

On the other hand, if you give them a gift card especially to something like a restaurant or a spa or a hobby shop or something, you're taking the option away from them to an extent, so now they feel more comfortable spending that money on luxuries without second guessing whether they really NEED to or not.

Yeah, it's a little bit of an absurd concept, but people are absurd, so that's how it is sometimes.
 
Is OP mad that mommy got him an Amazon gift card for Christmas instead of the dragon dildo he had on his wishlist?
It's okay, champ. There's always your birthday.
 
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