A method for allowing a purchaser to purchase an electronic gift includes providing code to a merchant that, when selected opens an overlay on the merchant's website, with the code being selected in association with at least one item available for sale on the website. The purchaser provides recipient and billing information using a device accessing he overlay. A service provider receives payment, in an amount at least equal to a purchase price of the item, and obtains an electronic gift card having at least a unique gift card number and a balance at least equal to the purchase price of the item. After the electronic gift card has been obtained, the service provider electronically notifies the recipient that the electronic gift has been purchased by the purchaser. The notification is viewable by the recipient and includes at least an identification of the item.