In today’s fast-moving, digital-first world, e-gift cards have become one of the most popular ways to reward, celebrate, or say thank you.
The global gift card market is expected to reach $614.7 billion this year, with digital gift cards leading as the fastest-growing segment, fueled by their convenience and instant delivery.
But if you're new to digital gifting, you might be wondering: How do e-gift cards work?
This beginner’s guide walks you through everything you need to know—from how they’re sent to how they’re redeemed—so you can start gifting smarter.
What Is an E-Gift Card?
An e-gift card (also called a digital gift card or virtual gift card) is a prepaid card delivered electronically via email or text. It can be used just like a physical gift card—online or in-store—depending on the brand.
Unlike plastic gift cards, e-gift cards don’t require shipping, handling, or packaging. They’re faster, more secure, and easier to manage—especially when sending to multiple people at once.
How E-Gift Cards Work Step-by-Step
Digital gift cards are simple to use. Here’s exactly how the process works:
1. Purchase & Customize the Card
You start by choosing a gift card from a platform like Toasty Card, Amazon, or directly from a brand’s website. You can:
- Pick the brand (Visa, Target, DoorDash, etc.)
- Set the amount ($10–$500+)
- Add a personalized message or design
- Choose to send immediately or schedule it for later
2. Delivery to the Recipient
The gift card is delivered to your recipient’s email or mobile phone number. It typically includes:
- The gift card code or QR/barcode
- A message from the sender
- Instructions on how to redeem
This delivery happens within seconds—making it ideal for last-minute gifts.
3. Recipient Opens & Redeems
Once the recipient gets the email or SMS, they can open the link and view their card. Depending on the provider, they may:
- Click a “Redeem Now” button
- View the gift card code or barcode
- Add it to a digital wallet (like Apple Pay or Google Pay)
4. Usage Online or In-Store
Recipients can spend their e-gift card in multiple ways:
- Enter the code at online checkout
- Scan the barcode in-store
- Tap their mobile wallet at a payment terminal
E-gift cards are accepted at hundreds of top brands, including restaurants, clothing stores, grocery chains, and online retailers.
Benefits of E-Gift Cards Over Physical Cards
Switching from physical to digital gift cards has plenty of benefits—especially for businesses.
No Delivery Delays or Shipping Costs
- E-gift cards are sent instantly via email or text.
- No need to worry about mail delays, lost packages, or physical inventory.
Easier for Bulk Gifting
Whether you're sending 1 or 1,000 cards, platforms like Toasty Card allow:
- Bulk uploads via spreadsheet
- Automated sending
- Group segmentation
Secure and Trackable
Digital delivery comes with transparency:
- You can see who received and redeemed their card
- Resend if emails bounce or go to spam
- No worries about stolen cards or skimming
Common Questions About E-Gift Cards
Do e-gift cards expire?
Most do not expire quickly. Always check the terms, but platforms like Toasty Card offer flexible redemption periods.
Can you resend an e-gift card?
Yes. If an email is entered incorrectly or lost, you can resend the card easily (no added fees).
Are there hidden fees?
Some providers charge activation or platform fees. Toasty Card, however, offers zero hidden fees.
Can e-gift cards be used internationally?
Some can. Toasty Card supports over 90 countries with localized cards.
Top Use Cases for E-Gift Cards
E-gift cards are versatile and widely used in:
- Employee recognition programs
- Sales incentives
- Holiday rewards
- Client or partner appreciation
- Survey and referral bonuses
- Birthdays and anniversaries
Where to Buy E-Gift Cards Online
You can purchase e-gift cards from:
- Toasty Card – Best for business and bulk gifting
- Amazon, Target, Walmart – For personal gifting
- Starbucks, DoorDash, Uber Eats – Direct from brand sites
Tip: Toasty’s Choice Card lets recipients choose from hundreds of brands—giving them full control of their reward.
How Toasty Card Simplifies E-Gifting for Businesses
Toasty Card is a leading platform for sending e-gift cards at scale—without any fees or complexity.
Toasty Card’s “What You Send Is What They Get” Promise
- No activation, shipping, or monthly fees
- You load $50 → your recipient receives $50
Why Businesses Choose Toasty Card:
- Upload recipient lists in seconds
- Track delivery & redemption
- Customize your branding & message
- Send to 90+ countries
From employee spot bonuses to holiday gifting campaigns, Toasty Card streamlines it all.
How to Get Started With E-Gifting Today
Here’s how easy it is to send your first digital gift card:
- Sign Up for a Free Toasty Card Account
- Upload or add recipient emails
- Select the amount and brand
- Customize your message and design
- Send instantly or schedule for later
You can even send a test card to yourself—try before you commit!
Try a Sample Toasty Card or Book a Demo
Curious how easy it is to send an e-gift card?
Send Yourself a Free Sample Toasty Card
Book a Demo to See Toasty in Action
There’s no better time to make the switch to digital gifting—faster, safer, and more personal than ever before.
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FAQs about How E-Gift Cards Work
Can I use an e-gift card in a physical store?
Yes—many digital cards can be scanned or added to a mobile wallet for in-store purchases.
Can I choose the delivery date?
Yes. You can schedule e-gift cards to be sent on specific dates.
Are e-gift cards refundable?
Most are not refundable once sent, but Toasty Card allows unused funds to be recaptured in some business plans.
How do I know if my recipient received the gift card?
Toasty Card offers delivery tracking and bounce-back alerts.
What if I typed the recipient's email wrong?
No problem—edit the email and resend at no extra cost.
Can I send gift cards in bulk?
Yes! Platforms like Toasty Card are built for bulk sending with advanced tracking tools.