How do gift cards work

Five tips to help you successfully deliver egift cards and safeguard against common pitfalls. Want a Totally Custom Gift Card? Although this new way of gifting is the talk of the holiday season, relatively few consumers have sent or used digital gift cards to date.

But that is about to change. As mobile payment transactions become the norm, people will likely turn to digital gifting as well. So what should these newcomers watch for when making the leap from physical to virtual cards? Below are five things consumers need to know in order to have a positive egift card experience. One of the primary benefits of sending gift cards electronically is that the gift can be sent almost immediately and free of charge!

Although egift cards make great last-minute gifts, I suggest allowing a small grace period an hour or more between the time you order the card and when you absolutely need to have it delivered. TIP: Schedule delivery. Order digital gift cards through websites and apps that allow you to schedule delivery. That way you can place the order whenever it is convenient for you, but still hold delivery of the egift card until a more appropriate date and time e.

Christmas Eve, before the birthday party, on the morning of your anniversary, etc. Here is a list of merchants that will schedule egift card delivery. I once sent an egift card to my daughter via email. Moreover, egift cards cannot be rescinded once redeemed. Had another person opened the transposed email and claimed the gift card, I likely would have been out the entire purchase amount.

TIP: Double check email address. Double check all contact information entered including your own when buying an egift card. Someone does and I am hoping you do or can point me in the right direction. Thank you, Julie Carswell Can you not purchase prepaid Visa or MC with your logo imprinted on the card?

That way your customer buys it from you with your brand, but can spend the money anywhere. Hi Dale, You definitely can order prepaid Visa or Mastercards co-branded with your logo. Your email address will not be published. Comment moderation is enabled. Your comment may take some time to appear. Please read the " User Review and Comment Policy " before posting.

Square POS is an intuitive and simple point of sale platform. It offers customizable tools and a variety of add-ons to fit your business needs and reach your goals. Get Started. Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities.

The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services.

Check our help guide for more info. Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships , and we adhere to strict guidelines to preserve editorial integrity. Company Summary Next Steps Summary. Best for any business that wants traditional or digital gift cards. Best for integrating with third-party gift card suppliers. Best for multi-location businesses that want digital or traditional gift cards. Best for small businesses that want to sell eGift cards from their POS.

Pros No additional cost to accept gift cards Accepts gift cards from most third-party suppliers Gift cards work online and in-store. Cons Must purchase gift cards through third-party supplier. Pros In-house and third-party gift card options available Digital and physical cards. Cons Additional cost to accept gift cards Non-transparent pricing.

Pros No additional cost to accept gift cards Digital and physical gift cards. Cons Third-party integration required for online redemption Not compatible with Clover Go. Cons Additional monthly cost to accept gift cards. Pros System integrates directly with QuickBooks Desktop Can issue refunds on gift cards as store credit Automatic gift card tracking. Cons Physical gift cards only Additional monthly cost to accept gift cards. Pros In-house and third-party gift card options available Customers can check card balance on their phone.

Cons Additional monthly cost to accept gift cards Digital cards only available through third-party integrations. Pros Multiple options for redemption, including social media Physical and digital cards Can issue promotional gift cards.

Cons Cards are not reloadable Gift card availability on lower-tier plans may be dropped in the future. Pros Included in Pro plan subscription cost Easy to set up Can be used with third-party gift cards. Cons No eGift cards In-store redemption only. Cons Additional monthly charge In-store redemption only. Are gift cards good for small businesses? How do businesses make money on gift cards?

Are gift cards reloadable? How does a gift card get activated? How can I get gift cards for my small business? The former editor-in-chief of SteelOrbis, Shannon has been researching and writing about small business software and financing since COM, eHow, Life'd, and other websites. View Shannon Vissers's professional experience on LinkedIn.

Latest posts by Shannon Vissers see all. Show more. Show less. Read Next. Leave a comment 13 Comments Responses are not provided or commissioned by the vendor or bank advertiser. Asher Novahov May 31, at am. This comment refers to an earlier version of this post and may be outdated.

Dave May 13, at am. The card would not be loaded monetarily This comment refers to an earlier version of this post and may be outdated. Jessica Dinsmore May 28, at am. Jennife3r January 25, at am. Jessica Dinsmore January 27, at pm. Anybody that could pointe me in tbe right direction would be greatly appreciated This comment refers to an earlier version of this post and may be outdated.

Jessica Dinsmore January 7, at am. Siobhan Cleary October 9, at am. Jessica Dinsmore October 19, at pm. Hi Siobhan! Julie Carswell May 21, at pm. Thank you, Julie Carswell This comment refers to an earlier version of this post and may be outdated.

Jessica Dinsmore May 28, at pm. Dale September 1, at pm. Jessica Dinsmore September 29, at pm. Leave a Reply Cancel reply Your email address will not be published. Close this module. Get Started No credit card required. Sign up for the Maverick Newsletter. No Preference - General. The Giftcards. No cash or ATM access.

The Visa Virtual Gift Card can be redeemed at every internet, mail order, and telephone merchant everywhere Visa debit cards are accepted in the US. The Visa Reward Card can be used everywhere Visa debit cards are accepted. No cash or ATM Access. Mastercard Gift Virtual Account can be redeemed at every internet, mail order, and telephone merchant everywhere Debit Mastercard is accepted in the US.

Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. The merchants represented are not sponsors of Giftcards. Please visit each company's website for additional terms and conditions. This article covers how gift cards work for a consumer, how businesses make money off of them and the behind-the-scenes technical aspects of an average gift card program.

So, how do gift cards work? Open loop cards look like a credit card and are accepted nearly everywhere. These are the cards you see for Amazon, Walmart and Target next to the checkout register in grocery stores. They typically have a magnetic stripe on the back and can be swiped just like a credit card, but some are simply scanned like a UPC or manually redeemed.