Revolutionizing Your Business with Gift Card Programs
Gift card solutions for business are specialized systems that enable merchants to offer, manage, and track prepaid cards that customers can purchase and redeem for goods or services.
For busy business owners seeking quick answers, here are the core components of an effective gift card solution:
| Component |
Description |
| Types |
Physical cards, digital eGift cards, reloadable options |
| Integration |
POS systems, eCommerce, accounting software |
| Key Benefits |
Increased sales, customer loyalty, cash flow improvement |
| Cost Structure |
Setup fees, per-card costs, processing fees |
| Must-Have Features |
Custom branding, multi-locaiton redemption, real-time reporting |
Gift cards have transformed from simple paper certificates to powerful business tools that drive revenue and loyalty. With an estimated $335 billion loaded onto gift cards in 2018 alone, they represent a significant opportunity for businesses of all sizes.
The statistics tell a compelling story:
- The average consumer spends 59% more than the original value of their gift card
- 74% of gift card recipients spend beyond the card's value
- 51% of gift card users become repeat customers
- Nearly half of all gift cards are sold during December
For retail and hospitality businesses struggling with disconnected systems, modern gift card solutions offer a way to simultaneously boost sales while enhancing your customer relationship management. Whether you operate a single location or multiple stores, implementing the right gift card program can create a seamless experience that keeps customers coming back.
As one restaurant marketing coordinator noted in our research: "Gift cards connect you to your customers in ways no other product can."
What Are Gift Card Solutions for Businesses?
Gift card solutions for business are more than just plastic cards—they're complete systems that help you create, sell, and manage prepaid value for your customers. Think of them as mini-banking systems that let your customers store value with your business, either for themselves or as gifts for others.
When a customer buys a gift card, they're essentially giving you an interest-free loan. You get paid today for products or services you'll deliver tomorrow (or maybe never!). But the real magic happens when customers come in to redeem their cards and spend beyond the card value.
Types of Gift Cards:
Your business can offer several types of gift cards, each with their own advantages:
Closed-Loop Cards work exclusively at your business. They keep customers coming back to your store and typically have lower fees since you're managing everything in-house. Perfect for building loyalty to your specific brand!
Open-Loop Cards carry network logos like Visa or Mastercard and can be used anywhere those cards are accepted. While they offer customers more flexibility, you'll pay higher fees and have less control over the customer relationship.
Physical Cards are the traditional plastic cards customers can hold in their hands. There's something special about having a tangible gift to give, which is why many customers still prefer them.
Digital/eGift Cards are sent instantly via email or text. They're perfect for last-minute shoppers or customers who prefer contactless options. No printing or shipping costs make these increasingly popular.
Reloadable Cards can be topped up with additional value, encouraging customers to return again and again. These are excellent for creating loyal, repeat customers.
| Feature |
Physical Gift Cards |
Digital eGift Cards |
| Delivery |
In-person or mail |
Instant email/text |
| Production Cost |
$1.45-$1.95 per card |
Minimal/none |
| Perceived Value |
Higher (tangible) |
Lower (intangible) |
| Loss Risk |
Can be misplaced |
Stored electronically |
| Environmental Impact |
Higher (plastic) |
Lower (paperless) |
| Impulse Purchase |
Limited to in-store |
Available 24/7 |
| Customization |
Fixed designs |
Dynamic/seasonal |
| Delivery Time |
Days (shipping) |
Instant |
You might hear the term "breakage" in gift card discussions. This refers to card value that never gets redeemed—like when someone loses their card or forgets about a small remaining balance. While this used to be a profit center, modern gift card programs focus more on redemption and the additional spending it generates.
How Gift Card Systems Work
Gift cards may seem simple, but there's quite a bit happening behind the scenes:
First comes issuance—creating physical cards with your branding or setting up digital cards in your system. When a customer purchases a card, it goes through activation, where your POS system loads the specified value onto the card.
The transaction processing typically involves setup fees plus per-card costs (around $1.45 each for physical cards) or a percentage of loaded value (about 2.5%) for digital cards. When customers are ready to spend, they present their card for redemption, and your system automatically deducts the purchase amount from their stored balance.
Modern gift card solutions handle balance management in real-time across all your sales channels, so a customer can buy in-store and redeem online without any hiccups.
As one restaurant owner told us: "The system is reliable and the customer service is the most responsive and thorough." Finding a solution with great support makes all the difference when you need help.
Open-Loop vs Closed-Loop: Key Differences
Choosing between open-loop and closed-loop systems is one of the biggest decisions you'll make for your gift card program:
With Open-Loop Systems, cards carry payment network branding like Visa or Mastercard. They can be used anywhere that accepts those networks, which customers might appreciate. However, you'll pay higher fees due to network processing costs, have less control over where funds are spent, and face additional regulations. These systems often require partnerships with issuing banks.
Closed-Loop Systems work only at your business. They typically have lower processing costs since there are no network fees, and you maintain complete control over the customer experience. Compliance is simpler, and you build a direct relationship with each customer. Most importantly, they're more likely to generate additional spending and return visits—exactly what most business owners want!
Local business owners often say that community-focused gift card programs are a meaningful way to give back and strengthen customer relationships. This highlights how closed-loop systems can strengthen the bonds between your business and the community you serve.
Benefits of Implementing a Gift Card Program
Let's face it – gift card solutions for business aren't just another payment option. They're powerful tools that can transform your business in ways you might not expect. When implemented thoughtfully, a gift card program becomes a revenue engine, loyalty builder, and marketing powerhouse all rolled into one.
Boosting Revenue and Average Ticket
The numbers don't lie – gift cards are money makers. When customers walk in with a gift card, magic happens at the register:
A whopping 74% of shoppers spend more than what's on their card. We're not talking small change either – customers add an average of 55% beyond the card's value. Think about that. A $50 gift card often generates $77.50 in sales!
Many retailers report a noticeable increase in gift card sales after switching to a fully integrated system like BPA POS, where gift cards connect seamlessly with point of sale and inventory tools.
This revenue boost happens in several delightful ways:
First, you get paid upfront before providing any products or services – a wonderful boost to your cash flow. Then when customers redeem, they typically spend more than the card value (we call this "uplift"). Some portion of cards (usually 2-5%) never get fully redeemed (known as "breakage"), and cards with remaining balances encourage return visits, creating a cycle of repeat business.
The holiday season is particularly golden for gift card sales, with nearly half of all gift cards sold in December. This creates a significant revenue boost exactly when most businesses need it most.
Customers spend more than the card value, and the integration with your POS and payments system ensures that the process is seamless. Learn more info about POS Payments here.
Driving Customer Loyalty & Acquisition
Gift cards aren't just transactions – they're relationship builders. They work double-duty by keeping existing customers coming back while introducing your brand to new faces:
When someone receives your gift card, they're getting more than stored value – they're getting an invitation to experience your business. An impressive 51% of gift card recipients become repeat customers after that initial visit.
Restaurant operators appreciate how easy it is to roll out BPA’s gift card system across multiple locations without complications. This simplicity means you can quickly begin building these valuable customer relationships.
Smart businesses improve these connections through thoughtful strategies like offering bonus value when customers reload cards, creating referral incentives for gift card purchases, sending birthday gift card bonuses, and connecting gift card usage to broader loyalty programs.
Think of gift cards as silent salespeople, working to bring new customers through your door who might never have visited otherwise.
Marketing & Community Impact
Beyond the immediate financial benefits, gift card solutions for business create ripple effects that strengthen your brand and community ties.
Each gift card serves as a branded advertisement sitting in customers' wallets or phones, keeping your business top-of-mind. When someone gives your gift card, they're not just sharing stored value – they're offering a personal recommendation of your business.
Community-wide gift card programs have become particularly powerful, supporting local economic development by keeping dollars within the neighborhood. Many employers now use local gift cards for employee incentives, further strengthening the local economy.
The community impact of gift card programs has been particularly significant during economic challenges, helping small businesses survive while strengthening neighborhood bonds. By participating in or creating a local gift card program, your business becomes part of something larger than itself.
Choosing the Right Gift Card Solutions for Business
Finding the perfect gift card solution for your business shouldn't feel like searching for a needle in a haystack. With the right approach, you can select a system that boosts your bottom line while delighting your customers. Let's walk through what really matters when making this important decision.
Must-Have Features Checklist
Think of your gift card system as an extension of your business personality. The best solutions will offer features that make both you and your customers smile.
Your cards should proudly wear your brand colors and logos. With customizable designs and branding options, your gift cards can reflect your business’s personality and leave a lasting impression. This visual connection helps customers remember you long after they've left your store.
Multi-location businesses need cards that work everywhere without hassle. I've heard restaurant managers breathe sighs of relief, saying things like: "It's extremely easy to set up all our restaurants on the platform." That seamless experience is priceless for both staff and customers.
Your gift cards need to shine both online and in-store. The ability to "sell your gift cards to anyone, anywhere, anytime" isn't just convenient—it's essential. Look for real-time reporting that keeps you informed about sales and redemptions, mobile wallet compatibility for smartphone-loving customers, and strong fraud protection to keep everyone's money safe.
Ready to get started? Here’s how to order gift cards through BPA POS.
Gift Card Solutions for Business: Cost Breakdown
Understanding what you'll pay helps avoid surprises down the road. The good news? Gift card programs have become more affordable than ever.
Setup Costs have dropped dramatically. Many providers now offer free setup, with card design and customization often included when you order in bulk. If you're using a compatible POS system, integration typically comes at no extra charge.
For ongoing expenses, physical cards start around $1.45 each, while digital eGift cards are usually free to issue. Most providers charge a transaction fee of about 2.5% plus a small fixed amount per load, with monthly subscriptions depending on features.
If you want to get fancy with premium materials like metal cards or special printing techniques, be prepared for additional costs. But as one provider cheerfully states: "No setup fees, pay as you earn, no contracts." This flexible approach makes gift card programs accessible to businesses of all sizes.
Integration with POS & Ecommerce
Your gift card system should play nicely with your existing technology. Nobody wants to juggle multiple systems or manually track balances!
Most modern POS systems offer built-in gift card modules or support third-party plugins. If your current setup isn't compatible, standalone terminals or mobile apps can fill the gap. For your online presence, look for simple website widgets, shopping cart plugins for platforms like Shopify or WooCommerce, or API connections for custom implementations.
Here at BPA POS, we believe in making things simple. Our gift card solutions integrate seamlessly with our point-of-sale systems, eliminating double-entry headaches and ensuring your customers have the same great experience whether they're shopping in-store or online.
Learn more about our Retail POS Systems and Restaurant POS Systems to see how they support fully integrated gift card functionality.
Security & Regulatory Compliance
Protecting your business and customers isn't just good practice—it's essential. The right gift card solutions for business take security seriously.
On the technical side, look for PCI DSS compliance, data encryption, and tokenization (which replaces sensitive information with secure tokens). Fraud monitoring systems that flag unusual patterns can save you from costly scams.
The legal landscape matters too. Federal law prohibits gift cards from expiring within five years, and any fees must be clearly disclosed. You'll also need to steer escheat laws (governing unclaimed property) and state-specific regulations that may add extra requirements.
Top-tier gift card programs focus on more than design, they prioritize durability and built-in security features that protect your business and customers.
The best gift card solution for your business is one that grows with you, integrates with your existing systems, and makes both you and your customers happy. When these elements come together, you'll wonder how you ever operated without it.
Implementing and Managing Your Gift Card Program
Launching a gift card solution for your business isn't a "set it and forget it" affair—it's more like bringing a new team member on board. You'll need thoughtful planning at the start and regular attention to keep things running smoothly.
Customizing Cards to Match Your Brand
Think of your gift cards as tiny ambassadors for your business. When designed well, they create that "wow" moment when pulled from a wallet or opened in an email.
Your brand identity deserves to shine through in every element of your gift cards. Most businesses start with their logo and color scheme, but don't stop there! Consider special finishes like matte or metallic that create a premium feel. Many of our clients at BPA POS find that seasonal variations keep their gift card program fresh and give customers a reason to collect multiple designs.
Using premium card stock and advanced printing adds not only polish but also helps reduce the risk of counterfeiting. This quality difference matters both for practical security reasons and for the impression your cards make. After all, nobody wants to give a flimsy-feeling gift card to someone special.
Digital designs offer even more flexibility, letting you quickly adapt to seasons or special occasions without ordering new physical inventory. Many of our clients alternate between standard designs and limited-edition versions that create a sense of urgency.
Gift Card Solutions for Business: Promotion Tactics That Work
Even the most beautiful gift cards won't sell themselves. The businesses that see the greatest success combine multiple promotion channels to keep their gift cards top-of-mind.
In-store, make your gift cards impossible to miss with attractive counter displays near checkout. Train your staff to mention them naturally during transactions—a simple "Did you know our gift cards make great presents?" can drive significant sales. Don't forget about receipt messaging and package inserts that remind customers about your gift card program after they've left.
The digital side offers even more possibilities. Email campaigns work wonders, especially before holidays when gift-giving is on everyone's mind.
According to data from Blackhawk Network and other industry studies, nearly 50% of all gift cards are sold during the holiday season.
Social media posts, website banners, and mobile notifications can all drive gift card sales when they highlight the right value proposition. Consider flash sales with limited-time discounts, value-add offers (like "spend $50, get $10 extra"), or creative bundles that pair gift cards with popular products.
Watch how it works
Tracking, Reporting & Optimizing
The most successful gift card solutions for business are guided by data, not guesswork. Modern systems make it easy to track what's working and adjust what isn't.
Keep a close eye on total card sales, both volume and value. Look for patterns in redemption rates—are cards being used quickly or lingering unused? One of the most important metrics is average additional spend beyond the card value, as this directly impacts your bottom line.
Breakage (unredeemed value) used to be considered a profit center, but savvy businesses now focus on redemption instead. When customers use their cards, they typically spend more than the card value and often become repeat visitors.
Testing different approaches helps refine your strategy. Try A/B testing various promotions to see which drives more sales. Adjust card designs based on performance data. Target your marketing specifically to customers who have purchased gift cards in the past, as they're likely to do so again.
At BPA POS, our integrated reporting tools give you real-time visibility into these metrics, making it simple to make informed decisions about your gift card program. The dashboard highlights opportunities for improvement without requiring you to become a data scientist.
Advanced Use Cases and Best Practices
Beyond basic gift card sales, sophisticated gift card solutions for business can transform your operations in ways you might not have considered. Let's explore some creative applications that savvy business owners are implementing.
Scaling Across Multiple Locations & Franchises
For businesses with multiple storefronts or franchise operations, a consistent gift card experience becomes crucial to your brand promise.
Imagine a customer buying a gift card at your downtown location but trying to redeem it at your suburban store—only to be told "those cards don't work here." That's the kind of frustrating experience that damages customer trust. A properly implemented gift card solution for business prevents this scenario entirely.
Multi-location businesses need a centralized database that updates balances in real-time across all locations. You'll want role-based permissions so location managers can handle day-to-day operations while maintaining appropriate controls. Clear settlement rules ensure each location is properly credited when cards are redeemed, and consolidated reporting gives you visibility across your entire enterprise.
For franchises or regional chains, delegating gift card purchase permissions to managers can speed up distribution while maintaining control.
Transitioning from an Existing Provider
If you're reading this while stuck with an outdated gift card system, you might worry that switching providers sounds like a headache. With proper planning, it doesn't have to be.
The migration process typically follows these steps:
- Export your existing data (card numbers, balances, customer information)
- Test importing this data to your new system
- Run both systems in parallel briefly to ensure accuracy
- Communicate changes clearly to your customers
- Train your staff thoroughly on the new system
- Phase out old cards gradually
The customer communication piece is particularly important. Be transparent about your timeline, provide clear instructions for checking balances on the new system, and reassure cardholders that their existing cards will remain valid. Having a dedicated contact person for questions creates additional peace of mind.
At BPA POS, we've guided countless businesses through this transition process with minimal disruption to their operations or customer experience. Our team understands that your gift card program represents not just monetary value, but your customers' trust in your brand.
By expanding your gift card solutions for business beyond basic retail transactions into these advanced applications, you'll extract maximum value from your investment while creating better experiences for employees, customers, and management alike.
Frequently Asked Questions about Gift Card Solutions
What legal regulations govern gift card expiration and fees?
When you're setting up a gift card program, staying on the right side of the law is essential. The main federal regulation you'll need to know about is the Credit CARD Act of 2009, which provides some important consumer protections:
- Gift cards must remain valid for at least five years from issuance
- You can't charge inactivity fees until a card has been unused for at least 12 months
- All fees need to be clearly disclosed to customers before purchase
But that's not the whole story. Different states have their own rules too. For example, California doesn't allow gift cards to expire at all, while Maine requires businesses to turn over unused gift card balances to the state after a certain period (known as "escheatment").
At BPA POS, we've designed our gift card solutions for business with these regulations in mind. Our system helps keep your gift card program compliant with both federal and state requirements, so you can focus on growing your business rather than worrying about legal complications.
How can I prevent fraud in my gift card program?
Gift cards can sometimes be targets for fraud, but with the right precautions, you can keep your program secure. The best approach combines technology and good business practices.
Start by setting purchase limits to prevent someone from loading excessive amounts onto a single card. For high-value redemptions, train your staff to request ID verification. This simple step can deter many would-be fraudsters.
Watch for unusual patterns too – like someone buying many small-denomination cards or strange redemption behaviors. These can be red flags worth investigating.
Physical security matters as well. Keep your unactivated cards locked up and implement solid inventory controls so you know if cards go missing.
Can one platform handle gift cards for both online and in-store transactions?
Absolutely! Modern gift card solutions for business are built for today's omnichannel world. Your customers expect seamless experiences whether they're shopping online from their couch or browsing in your physical store.
The secret is cloud-based balance management. When a customer makes a purchase with their gift card – whether online, in-store, or through your mobile app – their balance updates instantly across all platforms. This means no awkward moments where a customer thinks they have money on their card only to find the balance hasn't updated.
The same card can be redeemed multiple ways: by entering the card number during online checkout, scanning a physical card at your register, or tapping their phone if the card is in their mobile wallet.
What's particularly helpful for business owners is the unified reporting. You'll see all gift card activities in one place, making it easy to track performance and spot trends regardless of where transactions happen.
Businesses often see growth in gift card sales when they offer seamless redemption online and in-store—giving customers the flexibility they expect.
At BPA POS, we've designed our integrated gift card solution to work flawlessly across all your sales channels, creating a consistent, convenient experience that keeps customers coming back.
BPA POS Gift Card Solutions for Business: The Competitive Edge You Need
Let's be honest – gift card solutions for business have come a long way from those simple paper gift certificates of the past. Today, they're powerful tools that do so much more than just provide another payment option. The numbers tell the story better than I can: when 74% of gift card recipients spend beyond the card's value and 51% come back as repeat customers, you're looking at a genuine revenue-generating powerhouse.
At BPA POS, our integrated gift card functionality works seamlessly with our point-of-sale and accounting solutions. This means no juggling separate systems or reconciling mismatched reports. Instead, you get a clear, unified view of how gift cards impact your overall business performance.
Implementing a thoughtful gift card program isn't just about offering another way to pay – it's about creating new revenue opportunities, strengthening customer connections, and building a foundation for long-term business growth. In today's competitive marketplace, that kind of edge matters more than ever.
Want to explore the details for yourself? Learn more about Gift Card Solutions from BPA POS and see how they can elevate your business.
