Glossary
What is a gift card? E-commerce definition
June 4, 2026
A gift card is a prepaid payment method that allows a customer or beneficiary to use a defined amount on an online store. It can be digital, sent by email in the form of a code, or physical in a retail context. In e-commerce, it serves as a gift idea, a seasonal lever, a customer loyalty solution, and sometimes a commercial alternative to a refund.
Summary
Definition of a gift card
The gift card represents a monetary value that can be used during a future order. Unlike a promo code, it does not reduce the price: it pays for all or part of the amount due. The customer can use it at checkout, complete the payment with another method if the cart exceeds the balance, and keep the remainder for a subsequent purchase if the platform allows it.
It can take several forms. The e-card is the most common in e-commerce, as it is quickly generated and sent. The physical card remains useful for stores that have a physical point of sale or wish to offer a printed medium. In some cases, the customer service team can also issue a card manually following a commercial gesture or a return.
Why the gift card is interesting in e-commerce
The gift card generates revenue even before the recipient chooses their product. It performs particularly well during periods of high gifting intent: Christmas, Mother's Day, birthdays, Valentine's Day, or BFCM campaigns. It also allows you to reach a new customer: the buyer already knows the brand, but the recipient may be discovering it for the first time.
It can also increase the average basket size. It is common for a recipient to add a top-up to exceed the available amount. A €50 card can therefore trigger an order of €65 or €80. For the merchant, the challenge is to clearly define the validity, conditions of use, refund policy, and accounting treatment of the unused balance.
Gift card user journey
The process is simple: a customer purchases a gift card, chooses an amount, optionally enters the recipient's details, and then the code is sent by email. The beneficiary then returns to the shop, adds products to the cart, and enters the code at checkout. The balance is deducted from the total, acting as a payment method.
For the experience to be seamless, the code must be legible, the email must explain how to use it, and the gift card product page must provide reassurance regarding delivery times. A poorly presented gift card can generate unnecessary support tickets, especially when the customer confuses a gift code with a promo code.
Gift cards on Shopify
Shopify natively manages gift cards. The merchant can create a gift card product, define multiple amounts, customize the product image, and let Shopify generate the codes. They can also issue a card from the administration panel for customer service cases or as a commercial gesture.
At checkout, the gift card is treated as a means of payment. It can be used partially and combined with a credit card or a wallet. This distinction is important for the support team: a gift card does not have the same logic as a discount, and its balance must be easily viewable or explained to the customer.
Points of vigilance to be aware of
The gift card must be visible in the catalog, especially before peak trading periods. A simple hidden product is not enough: it sometimes needs to be integrated into the menu, seasonal emails, the homepage, or gift recommendations. The amounts must be clear and adapted to the average basket size of the store.
The accounting and regulatory framework also needs to be anticipated. A sold card often represents a liability to the customer until it is used. The validity period, refund procedures, and management of lost codes must be documented. Transparent communication avoids disputes and improves trust.
FAQ and related terms
Associated terms
Shopify gift card: operation specific to Shopify.
Promo code: discount, distinct from payment by gift card.
Checkout: step where the code is entered.
FAQ
Gift card and promo code: what is the difference?
The gift card pays an amount. The promo code reduces the price. The two can sometimes be combined, but they do not have the same logic.
Can a gift card be used multiple times?
Yes on Shopify, as long as the remaining balance is kept on the card.
Can we sell a physical and digital gift card?
Yes, but the timelines and delivery methods must be clarified to avoid confusion.
Enzo
13 May 2026

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