Glossary
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gift-card
Gift card: definition, e-gift vs physical, promotional differences, Shopify sales, AOV, and customer service best practices.
Updated on
June 4, 2026
A gift card is a prepaid payment method that allows a customer or recipient to use a set amount on an online store. It can be digital, sent by email as a code, or physical in a retail context. In e-commerce, it serves as a gift idea, a seasonal lever, a 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 for 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, pay the remaining amount with another payment method if the basket exceeds the balance, and keep the remainder for a later purchase if the platform allows.
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 shops that have a point of sale or wish to offer a printed version. In some cases, the customer service team can also issue a card manually after a commercial gesture or a return.
Why gift cards are attractive 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 helps reach a new customer: the buyer already knows the brand, but the recipient might be discovering it for the first time.
It can also increase the average basket value. It is common for a recipient to add an extra amount to exceed the available balance. A €50 gift card can therefore trigger a €65 or €80 order. For the merchant, the challenge is to clearly define the validity, terms of use, refund policy, and accounting treatment of the unused balance.
Gift card user journey
The journey is simple: a customer buys 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 store, 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 reassure about 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 issues or 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 follow the same logic as a discount, and its balance must be accessible or explainable to the customer.
Points of vigilance to be aware of
The gift card must be visible in the catalog, especially ahead of peak commercial seasons. 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 value of the store.
The accounting and regulatory framework also needs to be anticipated in advance. A sold card often represents a liability to the customer until it is used. The validity period, refund conditions, and management of lost codes must be documented. Transparent communication avoids disputes and improves trust.
In brief
Gift card = prepaid payment, code or physical card.
Distinct from the discount voucher and promo code.
Levers: turnover, acquisition, AOV, seasonality.
Shopify: gift card product, manual issuance, checkout.
Communication, validity, accounting and after-sales service to be framed.
FAQ and associated terms
Associated terms
Shopify Gift Card: specific functionality 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. Both 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 both physical and digital gift cards?
Yes, but it is necessary to clarify the delivery times and methods to avoid confusion.
Enzo
June 4, 2026
