Free Gift Cards not exactly Free

Free Gift Cards are not free

Free gift cards require other purchases

In this rough economy many retailers are using a practice that, on the surface, is a bit confusing. The retailers including Target, WalMart and more are giving away free gift cards. Why would Target gift cards be given away for free? The idea is to drive customers into the stores who would not visit otherwise. Then, once the shoppers are in the store, they ideally spend more money than they are given for the free gift card.

It is important to keep in mind that these free gift cards are not for $500, they are often for low amounts such as $5 or $10. There are not many things that one can purchase for these small amounts so it is very common for a customer to spend more than the allotted amount. This becomes a win for the retailer.

There is another way that the retailers can help insure that the free gift card can be a win for them. The retailers insist that the gift card be used to buy a certain type of product. For example, they may say the gift card is free but it can only be used to buy a $30 bag of dog food. At this point, the gift card they have given away is nothing more than a glorified coupon. A great win for the retailer and the consumer.