How Gift Cards Work

⏱️ 4-5 min

Who doesn't want a gift card? Here's a quick look at what gift cards are, where they live inside your software, and everything you'll be able to do with them.

The basics

What Is a Gift Card?

A gift card is a prepaid balance. Someone buys or receives a card for a set amount, and the recipient uses it later at checkout. The card tracks its remaining balance until it reaches zero.

🎁

A Prepaid Balance

Cards are issued at set amounts, for example $25, $50, $75, or $100. That balance stays attached to the card until it's fully redeemed.

📈

A Sales Driver

People buy gift cards for friends, family, or as rewards. That pushes new buyers into your system and works great for holidays, promotions, and loyalty campaigns.

🤝

A Loyalty Tool

You're not limited to selling them. You can send a gift card directly to a contact with no payment required at all, a nice touch for a thank-you or a reward.

Where they live

Where You'll Find Gift Cards

Everything lives under Payments, in two places.

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Payments → Gift Cards

This is where you create, track, and manage every gift card product you offer.

🧾

Gift Card Orders Tab

This is where you check balances, redemptions, order history, and every detail tied to a specific order.

The main dashboard shows you four things at a glance:

1️⃣

Your Gift Card Products

Every gift card you've created, ready to sell or send.

2️⃣

Each Denomination You Offer

The different price points available on a single gift card product.

3️⃣

Order Details

Who bought it, who received it, and the details behind each order.

4️⃣

Balance & Redemption Activity

What's been spent, what's left, so nothing gets lost in the shuffle.

Key terms

Definitions

Tap any term to expand it.

The gift card you build and brand, name, description, artwork, denominations, and terms, that customers can then buy or that you can send.
One of the preset dollar amounts a gift card product is sold or sent at, for example $25, $50, $75, or $100. A single product can offer several.
The tab where every issued gift card, sold or sent, shows up with its status, balance, and redemption history.
What's left on a gift card after any redemptions. It starts at the denomination amount and counts down to zero.
Help me do it

Things To Do

Finish these before moving to the next lesson. They only take a few minutes.

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⚡ Tips

  • Gift cards aren't just for sales. Sending one with no payment required is a simple way to say thank you or reward a referral.
  • The dashboard is your home base. Check it regularly to see which denominations are performing best.
  • You don't need a holiday to use a gift card, customer appreciation and team incentives work just as well.
  • Everything starts with one gift card product. The next lesson walks you through building your first one.
Check yourself

Quick Knowledge Check

Answer a few quick questions to lock in what you just learned.

0 of 4 answered

Where do gift cards live inside your software?

A preset dollar amount a gift card is sold or sent at, like $25 or $50, is called a ____.

Which tab shows balances, redemptions, and order history for every issued gift card?

True or false: you can only send a gift card after the recipient pays for it.

Help me apply it

Try This With Your Favorite AI

Copy a prompt below and paste it into ChatGPT, Claude, Gemini, or whatever AI tool you use. Fill in the bracketed details and it'll help you write your own version for your business.

🎯 Where Gift Cards Fit My Business

You are a marketing strategist helping me figure out where gift cards fit best in my business. My context: - My business type and what I sell: [describe briefly] - Upcoming holidays, promotions, or busy seasons I already have planned: [list them] - Whether I have a loyalty or referral program already: [describe, or say "not yet"] Give me: - 3 specific moments in the next 90 days where a gift card promotion would make sense for my business - One idea for selling gift cards and one idea for sending them for free as a reward - A simple way to measure whether the gift card program is working Finish by asking me: "Want help writing the first gift card's name and description?"

💡 Gift Card Naming Brainstorm

You are a copywriter helping me name my first gift card product. My context: - My business type: [describe briefly] - The occasion or purpose for this card: [holiday, loyalty reward, general gift card, etc.] - The tone I want: [describe, for example warm and simple, or fun and playful] Give me: - 5 short name options for the gift card product - A one or two sentence description for each, written the way I'd want a customer to read it - One suggestion for what to put in the terms and conditions box Finish by asking me: "Want help picking denominations and an expiration policy next?"

Now that you know what gift cards do and where they live, let's go create your first one.