What is the difference between a gift card and a prepaid card?

Gift cards and prepaid cards sound alike, since you can store money on each of them. There are however some key differences between the two.
The following are a few differences between gift cards and prepaid cards in Zenoti:

  Gift Card Prepaid Card

Card Types

Gift cards can be sold for a selected amount or a service.

Read What are Amount and Service Gift Cards?

Prepaid can be sold only for a specific amount.


Gift cards are a popular way of gift giving to ensure that the intended recipient can purchase a product or service of their choice using the cash value on the card. The gift card can however be used by anyone, meaning, the usage is not limited to only the buyer or recipient.

Prepaid cards, like gift cards, is an alternative to carrying money and is loaded with an amount in advance. The difference however lies in its usage - only the prepaid card holder can use the card.

Sale Tax

Based on the center settings, tax may or may not apply on the sale of gift cards.

Prepaid cards, however, are sold without tax. Tax applies on the actual purchase of products or services, and not on the pre-paid card itself.


The redemption of gift cards is limited to the items configured at the organization level.

The redemption of prepaid cards is limited to the system default items configured at the organization level.

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