What’s the difference between Prepaid Cards and Store Gift Cards

What is a Prepaid Card?

A Prepaid Card is loaded with a set amount of money in advance, which the recipient can then spend up to the available balance. Unlike a Retailer Gift Card, which is generally restricted, Prepaid Cards can give recipients access to a much broader network of businesses.

For example, Mastercard Prepaid Cards can be used at more than 37 million retailers worldwide, both in-store and online, giving recipients greater freedom over how and where they spend their reward.

Eftpos Prepaid Cards can be used in-store at more than 950,000 locations across Australia, making them a flexible option for employee rewards, customer incentives and corporate gifting.

What is a Retailer Gift Card?

A Retailer Gift Card is issued by a particular retailer or brand and can generally only be used with that business or a participating group of stores. They can be a good choice when you know the recipient has a favourite retailer, although they offer fewer spending options than Prepaid Cards.

Their value is also linked to the retailer continuing to trade and honour its cards. If a retailer enters administration or closes, there may be restrictions on how existing gift cards can be redeemed, or they may no longer be accepted.

Are Prepaid Cards more secure than Retailer Gift Cards?

Prepaid Cards can offer additional security features that aren’t necessarily available with Retailer Gift Cards. For example, Mastercard Prepaid Cards from Corporate Prepaid Cards come with Mastercard Zero Liability Protection, Fraud Protection Guarantee and 3D Secure (3DS).

If a card is lost or stolen, it can also be locked to help protect the remaining funds and, subject to applicable conditions, replaced.

Retailer Gift Cards displayed in-store can be vulnerable to tampering, where criminals access a card’s details before it is purchased and then drain the funds after the card is activated.

An ABC investigation in August 2026 documented 19 reports of suspected gift card tampering across Australia, while in a separate Sydney case, police alleged that at least $10,200 worth of tampered gift cards were drained. Many people who reported gift card issues to the ABC also experienced frustrating communications with companies involved, with emails raising more questions than answers.¹

What happens to a gift card if a retailer collapses?

If a retailer becomes insolvent, there’s no guarantee its gift cards will continue to be accepted under their original terms.

When Barbeques Galore entered administration in 2026, customers could only redeem gift cards if they spent an additional $2 for every $1 of gift card value used. Following the closure of its company-owned stores, unredeemed gift cards were treated as unsecured creditor claims.²

ASIC advises that customers with gift cards from an insolvent company can register as unsecured creditors, with the insolvency process determining whether they are entitled to a refund.³

Do Prepaid Cards give recipients more choice?

Yes. Unlike Retailer Gift Cards, Prepaid Cards aren’t restricted to a particular retailer or group of stores, giving recipients greater freedom over where and how they spend their reward.

That flexibility can be particularly valuable for businesses rewarding employees, customers or clients across different locations. For recipients in regional or remote areas, it also removes the need to choose a retailer with a convenient store nearby.

How much can you load onto a Prepaid Card?

The amount you can load onto a Prepaid Card depends on the card and provider. Corporate Prepaid Cards allows businesses to load up to $9,999 onto a Mastercard Prepaid Card, while Prepaid Cards purchased through Gift Card Store can be loaded with up to $1,000 per card.

Maximum load limits vary between Retailer Gift Cards, while Corporate Prepaid Cards’ load limits give businesses flexibility to tailor the value to the recipient and occasion — from a small employee thank-you to a higher-value performance incentive or corporate gift.

Are Prepaid Cards easier for businesses to manage?

Prepaid Cards can make it easier for businesses to manage employee reward programs, customer incentives and corporate gifting. Corporate Prepaid Cards provides access to a Client Portal where businesses can order, load and manage their card programs, helping streamline administration from one central location.

For businesses with more complex requirements, Prepaid Cards can also be tailored to suit different programs and use cases, with options including zero-balance or reloadable cards, ATM access, custom-branded designs and Prepaid Cards for managing employee expenses.

They also provide greater peace of mind when it comes to protecting the funds you’ve distributed. If fraud occurs, Corporate Prepaid Cards’ Sydney-based Disputes Team will acknowledge the claim within 24 hours, with replacement cards issued within seven days, subject to applicable conditions.* With Retailer Gift Cards, recovery of funds or replacement of the card is not guaranteed, meaning the remaining balance may be lost.

*Providing neither the client nor cardholder has compromised their card details. Replacement cards are issued once the claim investigation is completed and usual card fulfilment timeframes apply.

Prepaid Cards vs Retailer Gift Cards: which suits your business?

Here’s how the two options compare: