Is Giftly a Scam? 

If you’re considering buying a Giftly gift card, you need to know whether it’s safe. Is Giftly a scam?

Below, we explain whether Giftly is a scam and discuss some steps you can take to improve your safety when buying gift cards on this website. 

What Is Giftly?

Giftly is a website that lets users send a monetary gift with a suggested way to spend it. The receiver can follow the suggestion or choose to use the funds another way. 

Recipients can withdraw funds to a bank account or PayPal, or request a physical card by mail. 

Giftly describes its service as “like a gift card but more flexible, or cash but more thoughtful and convenient.”

The company started in San Francisco in 2010 and is privately held. 

Is Giftly a Scam?

No, Giftly is not a scam. It’s a legitimate digital gift service. 

User reviews of Giftly are mixed as of this writing: 

• 4.3 out of 5.0 stars (from 7k reviews) on Google. 
• 4.2 out of 5.0 stars (from 7,898 reviews) on Trustpilot.
• 1.3 out of 5.0 stars (from 18 reviews) on SiteJabber. 
• 1.7 out of 5.0 stars (from 45 reviews) on PissedConsumer. 
• 1.31 out of 5.0 stars (from 115 reviews) on Better Business Bureau.

Positive reviews praise the ability to choose the date the Giftly gift card is sent, the extensive card choices for different occasions, and the email confirmation received when the gift card is sent and opened by the recipient. 

One Google review said: 

“I bought a gift card for my friend who was having a surprise birthday party thrown for her. I was able to choose a date (after the party) on which the card would be sent since I didn’t want to be the one who spoiled her surprise! It’s also nice that there’s an appropriate card you can choose for various occasions (unfortunately, you have to pay for the card). I also got emails for when the gift card was sent, opened by the recipient, and received a thank you note from her – all through Giftly. I would definitely use it again.” 

Another plus is the option to print or email the gift, so there’s no waiting for a physical card. 

Negative reviews point out delivery issues, poor customer service, and high fees. 

Many people also report not being aware that they were purchasing a Visa card rather than a normal gift card (i.e., for a specific merchant) 

As one Google review said: 

“Terrible. The site makes it seem like you are buying gift cards for a specific restaurant when in fact one has to go through an awkward process to get a visa sent by mail.”

On online forums like Reddit, users acknowledge that Giftly is legit but note that it’s just a Visa card and that there are cheaper ways to send someone a cash gift. 

One person advised that: “You are better off just giving cash to the person so you don’t waste money on the service fee!!”

That said, Giftly seems to be well-liked by employers because it gives employees greater flexibility in how they can spend their gift cards. 

Giftly is a Better Business Bureau (BBB) accredited business and holds an “A+” rating (see our review on whether the BBB is a scam) as of this writing. 

The company has received 172 complaints on the BBB website over the last 3 years, 84 of which were closed in the previous 12 months, covering issues such as unauthorized listings and refund delays. 

Giftly regulatory actions and lawsuits

In 2022, a civil class-action lawsuit filed on behalf of merchants alleged that Giftly and another gift card provider, GiftRocket, used merchants’ names without permission and misled consumers into thinking the gift could be used at the named businesses. 

Plaintiffs also complained about fees and redemption hurdles. 

Though Giftly denied wrongdoing, it nevertheless agreed to a $500,000 settlement covering merchants whose names were listed without consent. 

Security

In its privacy policy, Giftly describes its security controls. 

The company says it stores personal information on its servers in the United States. 

It protects this information through security measures that include firewalls, physical and electronic access controls, system-wide data encryption, and strict rules governing data access and use. 

Giftly says it will notify affected individuals promptly in the event of a data breach.

Privacy

Giftly explains in its privacy policy the kind of data it collects, why, and with whom it shares it.

It collects personal information in the following circumstances:

• Account registration: Name, location, phone number, email address, and optional details (e.g., photo, mailing address, social media usernames, and interests).
• Giving a Giftly: Payment information (credit card or PayPal), billing address, message to recipient, and recipient’s contact details (email address or social handle).
• Redeeming a Giftly: Redemption location and value. This information may be shared with the sender. 
• Contests, promotions, and surveys: Responses and participation data, possibly linked to your account.
• Technical data: IP address, browser type, pages visited, cookies, and log files for analytics and functionality.

Giftly uses the information it collects to provide and improve its services, as well as to verify identity, process payments, and ensure compliance with applicable laws. It also uses it to personalize content and measure usage, diagnose technical issues, maintain security, and analyze aggregated (non-identifiable) user behavior for improvement.

Consumers have certain choices. For example, you can decline to provide information (though note that this may limit your services) and update or correct your account data.

Giftly says that it may not be obligated to make corrections to your personal information unless required by law.

Giftly does not sell your personal data.

However, it may share it with service providers (for fraud prevention, payment processing, etc.), financial institutions (for payments and new products), other users (e.g., sender/recipient of a Giftly), merchants redeeming a Giftly, law enforcement when legally required, other third parties with your consent, and in corporate transactions (mergers, sales, acquisitions).

The company may share aggregated, anonymous data with partners for analysis.

It makes it clear that it is not responsible for the privacy practices of linked external websites.

So, Should You Use Giftly?

Depends.

Giftly can work for people who need a fast and flexible gift and prefer the convenience of cash over a merchant-specific card.  It may suit those who want to send a customized message and understand that the gift is essentially a money transfer.

It may not suit shoppers who expect a classic gift card they can swipe at a restaurant, dislike service fees, or are concerned about privacy and data collection.  

How to Use Giftly Safely and Privately 

• Use a unique, strong password for Giftly. Never reuse a password from another service. 
• Confirm you’re on giftly.com. Type the URL yourself or follow links from trusted sources to ensure you’re on the legitimate site.
• Be wary of impersonators. Scammers sometimes send fake “You’ve received a Giftly!” emails or texts. To stay safe, never click on links in unexpected messages. Go directly to the Giftly website and enter the redemption code manually.
• Don’t store your payment details on Giftly. Instead, enter them each time you make a purchase.
• Compare fees and alternatives before buying. Check the purchase fee and percentage withheld; weigh them against direct bank transfers, Cash App, or a traditional gift card.
• Keep personal information private. When creating a Giftly account, share only the required information.