Electronic PaymentsBlog

November 15, 2023

Why Offer Gift Cards? 7 Benefits for Small Business

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Small Business Tips

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Gift cards are one of the most popular presents for the holidays (and for special occasions all year long). Customers appreciate the convenience of a flexible gift option and the more personal feel of a small business card. 

With that popularity come some meaningful benefits for your small business’s bottom line:

Improve cash flow with revenue upfront

Increase sales and average transaction value

Bring new customers into your business

Encourage repeat visits and customer loyalty

Capture more holiday and special-occasion sales

Offer flexible store credit for returns

Compete with larger businesses on convenience

Here’s why each of these seven benefits make gift cards a great investment.

Improve cash flow with revenue upfront

Ideally, you want customers to use your gift cards so you can take advantage of the other benefits on this list. But even before redemption occurs, gift cards give you a meaningful benefit: upfront revenue when the card is purchased.

It’s essentially pure profit for your small business. Free money without losing any inventory, at little cost or effort to you, is an incredible deal. That extra flexibility can help loosen up your margins and cover seasonal slowdowns. If your business typically dips after the holiday rush, gift cards are a natural fit: more sales during the holidays and added cash flow as you head into the new year.

Increase sales and average transaction value

Gift cards can help you make more—and larger—sales. According to Blackhawk Network’s 2026 gifting research, nearly 60% of shoppers said they would spend beyond the original value of a gift card when redeeming it, with average additional spending reaching $73.

That means a gift card can generate value at multiple points: when the card is purchased and again when the recipient comes in to use it. If their purchase exceeds the card balance, your business benefits from the additional spend, too.

Bring new customers into your business

Every gift card that makes it to a new person builds brand awareness for your business, connecting you to new potential customers who might otherwise never learn about you. Gift cards are also great at getting those new customers into your store; receiving “free” money is typically plenty of incentive for a first-time visit.

Encourage repeat visits and customer loyalty

Do you always spend the total value of a gift card all at once? When customers have a remaining balance, they have extra incentive to return to your store, giving you more chances to catch their attention, build trust, and turn a gift card recipient into a loyal customer.

Gift cards can also complement a loyalty program, giving customers even more reason to come back and continue choosing your business. Over time, those repeat visits can help strengthen customer relationships and build lasting brand loyalty.

Capture more holiday and special-occasion sales

Gift cards are a top present for the holiday season, both for buying and receiving. Come December, gift-givers have a whole set of people to find presents for and need to start checking names off their lists.

If you offer gift cards, you help them make that process much easier. Customers get a quick way to give a gift that the recipient can choose how to use; you get more opportunities to make sales during one of the most lucrative seasons of the year.

This is especially helpful if your small business is service-based. People love restaurants, salons, and gyms, but those services are hard to gift without a gift card option. Add a gift card program and your business adds many more potential sales during the holiday season.

And gift cards have value beyond the holidays, too. Birthdays, anniversaries, graduations, Mother’s Day, Father’s Day—there are special occasions all year long that you can help your customers shop for.

Offer flexible store credit for returns

Having gift cards on hand opens up a new strategy for returns at your store. With gift cards, you’ll have the choice to easily offer in-store credit rather than directly providing cash back, encouraging customers to make exchanges rather than take their money elsewhere.

For small businesses, that keeps more money in-store while giving customers more options.

Compete with larger businesses on convenience

Running a small business means constantly trying to compete with large stores that have more resources and a larger footprint. Gift cards are one way to get an edge on these bigger businesses since they allow you to compete on convenience when it comes to gift-giving. 

At the same time, a gift card from a small, local business can feel more personal and thoughtful than one from a big chain. That gives customers a way to balance convenience with a gift that still feels unique.

How to make gift cards work for your small business

Getting started with gift cards is easy. You just need to choose a robust solution that handles the logistics while leaving you free to focus on your business.

A few features to look for:

• Simple sourcing for physical cards 
• Digital gift card offerings for omnicommerce and extending convenience online
• Seamless integration and communication with your POS
• Personalization options to customize cards to your brand
• Marketing collateral to promote cards
• Reporting and insights on gift card sales
• Options to make cards reloadable and reusable

If you already have an Electronic Payments merchant account, you already have access to all these benefits and features with free gift card processing through eGiftSolutions®. From custom designs to in-house support and window decals, endcap displays, and in-store signage, we’re ready to help you show off your brand, connect with holiday shoppers, and make more sales.

Get a Quick StartSM with eGiftSolutions®

With so many advantages to offering gift cards, it’s time to get started! The easiest way—and a great option if you’re feeling pressed for time as Small Business Saturday approaches—is with eGiftSolutions’ QuickStartSM program. 

Enroll to get eGiftSolutions’ free gift card processing, online reporting, and 24/7 technical support, along with the special QuickStart offer of 50 free pre-designed gift cards with no expiration date and shipping within four to five business days.

Get started now at eGiftSolutions.

Once you’ve gotten started, you can check out our resources on increasing your gift card sales to make the most of your program.

800-966-5520 | www.electronicpayments.com