What is a gift card and how does it work?
Photo: Avila Ops Tecnologia
A gift card is credit someone buys today for another person to use later in your store. You receive payment immediately, issue a code with a value and expiration date, and the recipient uses it at checkout when ready.
Between Black Friday and Christmas, it solves two problems. People unsure of the recipient’s size can buy a card. And stores can keep selling after the Christmas delivery cutoff, when shipping will no longer arrive in time.
How does it work in practice?
Customers choose R$ 50, R$ 100 or R$ 200, pay and receive a code by email or WhatsApp with a message for the recipient. The recipient visits the store, builds an order and enters the code as payment. Larger orders require paying the difference; smaller orders leave the balance on the code for a later purchase within its validity. Keeping the remainder tends to be considered abusive.
Before selling, define expiration, balance usage, whether coupons can combine with it and what happens if the store closes. Write these terms on the gift card page.
Do gift cards generate profit or just bring cash forward?
Both. Money arrives now without a discount, helping December cash flow. Some cards are spent on orders above their value or in January when stores are quiet. Track three numbers: cards sold, cards redeemed and outstanding balances.
A stationery store sells R$ 80 cards in December and sees most redeemed in February for back-to-school shopping. The Christmas cutoff date guide explains when to start promoting cards instead of products.
What to do now
Create a gift card product with three values and 12-month validity, then feature it on the homepage after your Christmas cutoff. In E-Commerce, cards are digital products with codes generated and validated at checkout: avilaops.com/loja-virtual or WhatsApp wa.me/5517997811471.
Frequently asked questions
Does a gift card require an invoice?
Consult your accountant. Common practice is invoicing the product sale when the card is redeemed, but treatment varies by the company’s tax regime.
Can I set a short expiration date?
Yes, if clearly disclosed before purchase. Six to 12 months is common; very short periods may be challenged as abusive.
Can cards work both in-store and online?
Yes, if both consult the same code records. Separate tracking may allow the same card to be used twice.
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