Physical vs digital
Physical cards work well at a counter and as an impulse purchase near checkout. Digital cards, sent by email or text, are the better fit for last-minute gifting and online sales, and cost nothing to print or restock.
Setting them up in the POS
Both major POS platforms handle gift card balances natively, so a card can be sold and redeemed at any register without a separate system to reconcile.
- Card balance tracked automatically in the POS
- Redeemable in full or partial amounts
- Balance checks available to staff and customers
- Reporting on outstanding liability at any time
Where to sell them
Near the register for impulse buys, on your website for remote gifting, and as a suggestion at checkout during gift-heavy seasons. The more places a customer can buy one without asking, the more get sold.
Why gift cards are good for cash flow
Money from a gift card sale comes in before the redemption happens, and a portion of cards are never fully redeemed. Both effects help cash flow, though neither should be the main reason to run the program.
Getting cards redeemed, not just sold
A card that never gets redeemed means a customer who never came back. Include a small bonus for redeeming above the card balance, or a reminder text before a card's typical redemption window closes, if your state's gift card rules allow it.
Legal basics to know
Most states restrict expiration dates and fees on gift cards, and rules vary. Check your state's requirements before setting expiration or dormancy fees, since getting this wrong creates real liability.
Promoting them without being pushy
A short mention at checkout during holidays, a sign near the register, and an easy add-to-cart option online cover most of what's needed — gift cards mostly sell themselves near a gift-giving occasion if they're visible.
Tracking the numbers
Track gift cards sold, redeemed, and outstanding balance monthly. A growing outstanding balance is future revenue walking in the door, and it's worth knowing how large that number has gotten.