Sam’s Club gift cards offer discounts and many options, beating Costco_1

In a recent interview, financial and investment consulting firm The Motley Fool shared insights regarding the rising popularity of gift cards among consumers looking to combat inflation, despite a nationwide slowdown in inflation rates. With prices still high in various regions, many shoppers are turning to retailers like Sam’s Club and Costco for their gift card purchases. Here are three key reasons why buying gift cards at Sam’s Club may have advantages over Costco.

First, Sam’s Club offers a wider variety of gift card options. According to the report, Costco’s website typically has about 76 types of gift cards available in a given area, including popular brands like Moe’s Southwest Grill, Southwest Airlines, Domino’s, and Uber, with availability limited to specific postal codes. In contrast, Sam’s Club features over 400 gift card options online, including selections not found at Costco, such as Starbucks, H&M, and PetSmart. Additionally, Sam’s Club stocks gift cards from clothing retailers like Old Navy, Gap, and Banana Republic, which Costco does not offer. For shoppers using the Sam’s Club cash back credit card, there are opportunities to save even more.

Secondly, gift cards at Sam’s Club come in smaller denominations. The report highlights that Costco has limited options for smaller gift cards, with discounts typically ranging from $10 to $30. On the other hand, Sam’s Club provides smaller value gift cards, such as various denominations for Domino’s. For example, a $45 value gift card is priced at $42.98, a $75 value card costs $65, and a $100 value card is priced at $75. In contrast, Costco offers only one option for a $100 gift card at $74.99, making it challenging for consumers who may only wish to spend $50 at Domino’s.

Lastly, purchasing gift cards from Sam’s Club comes with the benefit of being able to mail physical cards. Costco rarely sends physical gift cards to buyers unless they are purchased in-store. While Sam’s Club does offer many online gift card options, some can be mailed as physical cards, such as a set of four $10 Starbucks gift cards. This feature is particularly appealing for those looking to give gift cards as small presents during the holiday season or as tokens of appreciation for school teachers—receiving a physical card in a greeting card can feel more thoughtful than simply presenting a printed barcode.

Additionally, Sam’s Club accepts all major credit cards, whereas Costco only accepts Visa. This flexibility allows consumers to choose their gift cards based on their individual needs and preferences from various stores.