A Practical Guide to Digital Gift Cards for Resellers and Businesses | EZ PIN’s Best Solutions

Gift cards are not merely grab-and-go items at the counter anymore. Recently, businesses and resellers retail prepaid gift cards as a lucrative digital product. If you’re a business owner or run an e-commerce site, you can use it for resale, promotional campaigns, employee rewards, and predictable revenue. But what are the pros and cons of gift cards?

We look at bulk gift cards from a business and reseller perspective. Here, we try to focus on what actually matters to you, explain what you need to know, and help you plan to sell, distribute, or manage them at scale.

Key Area	The Pros (Why Sell It)	The Cons (What to Watch For)
Logistics & Costs	Zero Overhead: No shipping fees, warehousing, or physical inventory costs.	None: This is a purely digital advantage over physical goods.
Scalability	Instant Growth: The API allows immediate expansion into global markets and brands.	Support Volume: rapid sales can lead to higher customer queries regarding “how to redeem.”
Revenue & Margins	Predictability: Stable demand year-round (especially in gaming) helps cash flow.	Variable Profits: Margins are not fixed; they fluctuate based on the specific brand and region.
Product Usability	Versatility: Can be used for resale, employee rewards, or marketing incentives.	Restrictions: Unlike cash or Visa cards, these are “Closed-Loop” and tied to specific stores.

Physical and Digital Gift Cards: A Must-Know for Businesses

Gift cards used to be physical-only. Yet, although they do still exist today, online gift cards (digital/virtual gift cards) are more available and accessible around the globe right now.

Most companies and businesses have shifted toward using and reselling prepaid digital codes due to the various solutions they provide.

Digital gift cards for resellers are not only delivered instantly through EZ PIN, but they also remove the need for inventory costs, shipping fees, and physical handling. We allow businesses to resell digital gift cards across all regions without worrying about logistical challenges.

For most online businesses and resellers, digital gift cards are especially simpler and easier to scale.

You can start retailing digital gift cards on your website right now! EZ PIN provides the easiest solutions for resellers through its straightforward API. Begin expanding your e-commerce market at the moment.

Gift Cards and Prepaid Credit Cards

As you know, digital gift cards are different from prepaid gift cards. Prepaid cards are the ones Visa and Mastercard offer, such as Visa eGift Card (Visa Virtual Gift Card) or Mastercard gift card. Prepaid cards offer broader spending freedom. However, the downside is that they function as cash substitutes and offer no loyalty product value.

Unlike prepaid cards, online gift cards are tied to a specific platform or a store. Gift cards also permit users to use services such as Netflix, Apple TV +, Paramount Plus, and such. This makes them an ideal target for promotions or resale to a specific audience.

From a resale-only standpoint, digital gift cards with specific branding tend to perform better. The reason lies behind the fact that customers know exactly what they are buying with their brand-specific digital gift card and how they will use it.

What You Get Out of Selling Gift Cards on Your Platform

What you get out of buying bulk gift cards is predictability and stability. One of the strengths of gift cards is how clear their pricing and demand are. You can predict the resale amount throughout the year, especially when you’re targeting the gaming industry, entertainment, and digital services subscription. 

Digital gift cards also manage operational costs. When you’re buying online products from EZ PIN, there is no need to manage returns, handle shipping problems, or deal with physical stocks.

Since the delivery and redemption processes are straightforward, gift cards are repeatable buyouts and a low-maintenance product.

Those businesses offering online gift cards as incentives for their customers or loyalty rewards can benefit from it as a gateway. Clients are introduced to your business in an innovative manner. The creativity of incentives works out both ways.

Why Resellers Choose them? Pros and Cons of Gift Cards

The Pros

For modern businesses, adding digital gift cards to the portfolio is more than just an inventory update. it is a strategic move for growth. Here is why they are a powerful asset for resellers:

1. Zero Logistics and Inventory Costs. Unlike physical products, digital gift cards make no shipping or storage costs.. By integrating the EZ PIN’s instant delivery system, you can easily eliminate the overhead costs associated with physical stock.
2. Instant Scalability via API. Growth is usually a slow process, but not neccesarily. With digital API integration, you can expand your business to hundreds of global retailers instantly. An API connection allows you to sell high-demand products like gaming and streaming cards without manually managing codes.
3. Predictable Revenue Streams. What gift cards specialliy offer is stability. Sectors like gaming and entertainment have year-round demand that spikes predictably during holidays. This creates a reliable cash flow that helps balance out fluctuations in other areas of your e-commerce business.
4. Versatile Use Cases. Digital prepaid cards are highly flexible. You can retail them directly for profit, use them as employee incentives to boost morale, or offer them as loyalty rewards to increase customer retention on your platform.

The Cons

While the benefits are substantial, resellers must be aware of specific challenges to manage them effectively:

1. Customer Support Demands. The most common friction point is the redemption execution. Customers usually struggle to find where to input their code. Sometimes they confuse specific brand cards with general prepaid cards. Resellers must be prepared to offer clear guides or FAQs to minimize support tickets.
2. Restricted Usability (Closed-Loop). Unlike Visa or Mastercard prepaid cards (Open-Loop), brand-specific gift cards can only be used at that specific retailer. This lack of flexibility can deter some customers who prefer cash substitutes, meaning you must target the right audience for specific brands.
3. Variable Margins. Not all gift cards are similarly profitable. Margins differ depending on the popularity of the brand and the region. Resellers need a partner like EZ PIN that offers pricing flexibility to ensure they can maintain a healthy bottom line across different categories.

The Limitations Businesses Must Know

Some gift cards leverage quicker deliveries, and some offer better margins. We promote different kinds of pricing flexibility so you can decide more closely.

You can contact us if you have any queries regarding the matter, and our friendly team will be more than glad to assist you.

Helping Customers Redeem Their Gift Cards Smoothly

You can easily manage your customer support costs by improving customer satisfaction. One of the most common queries of clients is “How can I redeem it?” By providing the step-by-step guide to gift card redemption, you can achieve the highest efficiency.

Clear instructions are what you must always put at the point of purchase or delivery. Besides the redemption process, customers also must know whether the online code they received can be used online or in-store, and whether a sign-up is required.

For the digital gift cards your clients buy, you can simply provide the brand’s redemption page. As discussed, including easy-to-follow instructions can make a big difference in your customers’ experience.

Clients are more likely to complete their transaction when they have understood how and where to use their cards. They will trust your business for future purchases.

EZ PIN’s API Supports Gift Card Resellers

For businesses wanting to scale their gift card market, automation is key. EZ PIN’s API is designed to help resellers integrate digital gift cards directly into their platforms without the physical challenges.

Once integrated, businesses can:

• Access a wide range of digital gift cards
• Receive gift card codes instantly after payment
• Deliver codes automatically to customers via their own systems
• Track orders and status in real time

The API allows businesses to work with gift cards as if they were another digital product they are selling through the platform. Managing gift cards online gives you reduced delays, minimized errors, and allows you to focus on sales and customer experience.

By providing B2B bulk gift cards for your business, you can add another margin to your line-up. EZ PIN has made it easy for businesses, resellers, and companies to promote campaigns and incentive programs.

EZ PIN Platform Suits Gift Card Business The Best

We believes gift cards are not just add-on products. They are flexible digital codes that can fit into different business models. Whether you own an e-commerce platform or a gaming service, corporate rewards and loyalty programs are on your side.

When you set clear expectations for your customers, you guide them into choosing the right and most suitable gift. Working with a class one platform gives you the opportunity to rely on a trustworthy distribution partner.

With these in mind, our team will be more than happy to partner up with your business as a scalable digital strategy.