Eli5: How do stores benefit from selling gift cards?

Question

Eli5: How do stores benefit from selling gift cards?

In: 2

Answer 1

>How do stores benefit from selling gift cards?

Well, they get *money*.
If it’s a gift card for their own store they have to exchange fewer wares for the same amount of cash (since gift cards expire and sometimes aren’t utilized for the full amount), so it’s even **better than cash** and if it’s a gift card for some other vendor then that other vendor is already *paying* them for selling their gift cards, either as a rate or as a cut from the sales.