Prepaid Incentive Gift Cards

Ever wonder why some incentive companies sell prepaid gift cards that can only be used at a limited number of places? Well, the real answer is that by limiting where the card can be redeemed, the issuing company can form an alliance with the participating establishment demanding that the establishment provide a rebate to the issuing company for every dollar redeemed at their store. It's simply a matter of profit. And most of the time that extra profit is at least 10% and can be as high as 20-25%!

These incentive companies would like you to believe that these fixed cards are highly motivational to the winning participant because they have so many places where they can be redeemed. In truth the number of places they can be used is infinitely limited when compared to where a regular debit card can be used. If you take a close look at the places the card can be redeemed you won't find Best Buy, Home Depot or Walmart where most folks really want to shop, you'll find stores that you may not have even heard of, much less want to shop at.

Don't be fooled by the rhetoric of where the incentive companies want to shop. If they could make as much money by using open ended cards, my guess is you wouldn't even hear about the prepaid closed ended cards at all.