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Steam will no longer offer physical gift cards
(pawb.social)
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Rules:
Your suggestion was to let physical gift cards only be used for games, no DLC, marketplace, or elsewhere.
That would mean you'd have to add those gift cards to a new pool of funds, separate from the "general purpose" wallet, that you charge with the digital gift cards, or by selling stuff on the marketplace.
100% there will be people who're going to be confused by this. "Why can't I buy this DLC, I have the money in my Steam Wallet?! Was I scammed?" and another support ticket is opened.
This is not the same as using different payment methods, because it's not like your VISA can only be used for certain things.
If you want to avoid this possible confusion, you can make it so, the physical gift card doesn't automatically get added to your wallet. You just use the funds you actually need during checkout. This would inevitably lead to some gift cards not getting fully used, so you got a few dollars here or there left over, which is just a massive pain. In hindsight this also has the same problem with possible confusion, when people can't buy certain items with their gift cards and open support tickets again to complain.
I don't buy physical gift cards, I either load up my wallet or pay directly for stuff. Even so, I know your suggestion was terrible.