Gift Card
A gift card is prepaid store value, bought for a fixed amount and spent like cash at that store.
What a gift card is
A gift card is prepaid store value: bought for a fixed amount, delivered physically or by email, and spent like cash at that store.
Why gift cards matter
They’re revenue before inventory moves, they recruit new customers chosen by people who already like the store, and redemptions routinely spend past the card’s value.
They also rescue the gift-giver who knows the store but not the size.
Gift card mechanics that matter
- Digital delivery with scheduling for the occasion
- Balance checking and partial redemption
- Clear expiry terms where law allows any
- Accounting for unredeemed value (breakage)
Frequently asked questions
When do gift cards sell most?
Gifting peaks: holidays, occasions, and last-minute panic, where instant email delivery wins. A visible gift-card option in those windows does most of the year’s volume.
What is breakage?
The slice of gift-card value never redeemed. It looks like free money but is regulated in many places and, either way, an unredeemed card is a customer who never came in.