Gift cards

A gift card is money you have taken for goods you have not supplied yet. That is the whole thing to understand about it.

Selling one

Decide the amounts, whether the buyer can type their own, and whether it can be sent straight to someone else with a message.

Redeeming

It should work at checkout like a payment method, leave a remaining balance if the order is smaller, and ask for the rest if the order is larger.

Expiry

In many countries a gift card may not expire, or not before a long minimum. Check yours before you set a date. An expired card that the law says is still valid is a complaint you will lose.

What you owe

Unredeemed cards are a liability in your books, not revenue. Your accountant will want to know the total outstanding; make sure you can produce it.

What to check

• A test card redeems, leaves the right balance, and cannot be used twice for the same amount.
• The balance is visible to the holder without writing to you.
• You can list all outstanding cards and their total.