Open-Loop Gift Cards and Privacy

Some people like open-loop (Visa) gift cards because it affords them some privacy; the gift card is anonymous in that it is not associated with your name. Even if you are not a criminal, it can be disturbing to think how much information is collected about all of your spending habits, such as when you use normal credit cards. Thanks to the Gramm-Leach-Bliley Financial Services Modernization Act of 1999, this information is often sold in some form by financial institutions if you fail to properly opt-out (and even sometimes if you do properly opt-out).

It is true, as thisĀ article explains, that gift cards can be tracked just like credit cards. Authorities can obtain records that show where the gift cards were used and for what. But unless you use them in some way that associates the cards to you, such as purchasing something online which is then shipped to your name and address, purchases are still anonymous.