A business may never scale globally (not because the product or service isn’t good) if business owners ignore a tool already transforming businesses overnight. Trust me, this isn’t hype! This strategy is adopted by businesses of different sizes to drive repeat sales, build customer loyalty, and increase revenue without spending a dime on publicity and marketing. 

Ignoring this would mean leaving huge money on the table. 

As a small business owner, you can create your gift card just like Amazon, Steam, iTunes, and other gift card owners. Gift cards have become billion-dollar revenue machines.

This article guides you on how to create gift cards for your business and boost sales.

Benefits of Accepting Gift Cards as Payment

Gift card image

The benefits of Gift Cards to both businesses and customers are numerous but as a business owner, here are some benefits you’ll enjoy from accepting Gift Cards as a payment method;

1. Increase Revenue

Apart from the revenue generated from the Gift Card when they are purchased, they also present an opportunity for more revenue upon redemption. Since many shoppers see the Gift Card as “free money”, they are likely to buy the expensive items in the store.

Also, it has been revealed that 61% of consumers spend more than the value of their Gift Card, averagely overspending of $31.75 This reason is why big retailers like Amazon, Macy’s, Best Buy, Home Depot etc all integrate Gift Cards as a business strategy.

2. Attract New Customers

Gift Cards can help attract more new customers to your business. When your customers buy the card for friends and family who were not familiar with the brand, they are more likely to redeem the Gift Card in your store, hence increasing your customer base.

You can use Gift Cards for fundraising events which will boost your brand recognition and further gives you a good reputation of being a philanthropic business owner.

3. Attract Organic Traffic To Your Website

According to research by Gift Card Granny, almost 40% of consumers prefer digital Gift Cards over physical card because it doesn’t require them to visit the store.

The users can just purchase the card through your website and save themselves the trip of coming over, also, increasing the number of visitors that visit your website.

4. Increase Customer Loyalty:

Gift Cards promotions are a good strategy to increase customer loyalty. For example, you can offer a free $10 gift card to customers who purchase $100 in Gift Cards.

A purchaser will likely spend more money on buying extra Gift Cards which will boost your sales too. This offer can be limited to a short period, maybe during the holidays.

How To Create A Gift Card For Your Business

1. Get a POS System That Accepts Gift Cards

If you want to start creating Gift Cards for your business, the first step to take is getting a  point-of-sale (POS) system to sell and redeem the Gift Cards. 

You will easily create, promote, send and track Gift Cards by setting up a Gift Card system through your POS because it’s already linked with your store and website.

Check out a reputable POS company like Shopify,  purchase the POS and activate the Gift Card feature. The system will keep track of every Gift Card you sell and send the customers a unique Gift Card code they can use to redeem it via their email.

Ensure your POS system can account for all Gift Card sold, as well as track sales.

2. Know The Gift Card Laws

The laws and regulations guiding Gift Cards depend mainly on the region. To avoid violating any law in ignorance, you should consult a legal expert for more clarity.

For example, in California, you’re not allowed to add an expiration date to Gift Cards.

Also, the  National Conference of State Legislatures provided clarity about Gift Card laws in each state, which is based on the CARD act of 2009. The law prohibits Gift Cards from having an expiration date within five years of their issue which also prevents the users from being charged inactivity fees for not making a transaction for long.

3. Create Physical And/ Or Digital Gift Cards

The next thing to do after considering the Gift Card laws in your region and activating the Gift Card feature in your POS  is to create your Gift Cards. 

You can create both physical and digital Gift Cards but always keep physical Gift Card on hand for customers who need them. 

A survey from the Blackhawk Network showed that 42% of customers purchased a physical Gift Card at least every three months. Depending on the POS system you choose, you can create, print and email digital Gift Cards to customers.

4. Use a Gift Card App

Apps like GiftUp, Tango Card, or Rise.ai integrate with e-commerce and POS platforms. They automate everything from tracking to allowing custom messages, expiry reminders, and promotions.

Legal Considerations and Gift Card Compliance

This is not the area to skip; legal matters are serious matters. You’d want to ensure your business and your customers are legally protected. Here’s what you need to know before issuing any gift card: 

1. Expiration Dates

Most regions require gift cards to stay valid for at least 1-5 years, but many businesses now offer cards that never expire. It’s safer that way, and it helps to build trust.

2. Fees

You may not be allowed to charge inactivity or maintenance fees without disclosure. Be sure to create legal statements for all your money-related operations. Transparency in pricing helps you to stay compliant and prevents customer backlash.

3. Refund Policies

Create a refund policy and make it clear whether gift card purchases are refundable and under what conditions. This will help you avoid lawsuits in the future.

4. Unclaimed Property Laws

After a specific period of inactivity, unredeemed gift cards may be considered “abandoned property” and must be reported to the government. The question to ask is, What is a gift card legally? In some places, it’s considered a cash-equivalent liability.

Potential Risks of Offering Gift Cards

Every business model has its risks, and gift cards are no exception. Here’s what to watch out for:

  • Fraud: Scammers may try to redeem fake or stolen gift cards. Use secure systems and train staff to spot red flags. 
  • Chargebacks: If a customer disputes a gift card transaction, it could cost you money. Always keep transaction logs and receipts. 
  • Operational Confusion: Gift cards can cause checkout delays or accounting issues without clear staff training. 

Still, the rewards far outweigh the risks when done right.

Frequently Asked Questions (FAQs) About Creating a Gift Card for Your Business

How can a POS system activate gift cards?

Once you enter a gift card code into your POS system, it stores the card value in your backend system. The card becomes active upon purchase, and balance updates automatically after every use.

How can I make money creating gift cards for my business?

It’s very easy. Offer cards as gifts, promote them, and give bonus incentives for reloads. Customers often overspend the gift value, giving you an upsell opportunity every time.

Can I create gift cards online for free?

Yes, using platforms like Canva or Shopify, you can create gift cards online for free in minutes. Some tools offer customizable templates with no upfront cost.

How can I create a Gift Card on Amazon?

Sign in to your Amazon account, go to “Gift Cards,” select the amount, and choose between digital, printable, or physical options. You can create gift cards on Amazon for personal or corporate use.

How can I issue a gift card on Shopify?

In your Shopify admin panel, go to “Products > Gift Cards,” click “Add Gift Card Product,” and customize the details. Shopify automatically emails digital cards after purchase.

Conclusion

If you’re not offering gift cards as a business owner, you’re leaving money on the table. A gift card business naturally opens doors for passive income, deeper customer loyalty, and brand visibility. If you’re still thinking about starting a gift card business or looking to offer gift cards as a smart upsell strategy, the time is now!

Last updated on August 12, 2025