Gift cards are so easy and appealing for your customers. They give you revenue up front and can be very in demand, especially for gift givers. But just what do you need to know before you start implementing a gift card program? The negatives might surprise you.
4 Things to Know About a Gift Card Program
1. You’ll be for printing or creating
If you are implementing a gift card program on your own, you will have to design them and print them. On the low end you can use paper or cardstock and create gift checks. Some larger businesses use plastic cards. Others have recently turned to apps, electronic gift cards, or QR codes. Each of these options have different price points but they all cost something.
2. You need to worry about fraud or reproduction
The least expensive gift card solution is to print them on paper. But with this option there is the concern that someone can replicate your gift card. You’ll need to ensure a way to protect against fraud.
3. You need to track them
This goes hand-in-hand with safeguarding against fraud but you have to track what’s been used and what hasn’t. Failing to do so places you at greater risk for fraud.
4. You must decide on implementation policies
Will you replace a lost card? Will you refund unused portions? Will they expire? Will you give cash back to people who buy with a gift card and return the item? All of these decisions require rules that must be clearly stated to potential buyers.
If these sound like problematic administrative tasks, you needn’t forget about a gift card program. Instead, you can opt for a program that hands the implementation responsibilities to someone else. Check with your chamber of commerce or Main Street Association to find out if they have a local currency program.
If they don’t, contact us for details on how you might be able to start your own with other local merchants. That way you can offer your customers the convenience of gift cards without the responsibilities of implementing the program on your own.
