Glossary
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shopify-gift-card
Shopify gift card: definition of gift card purchase, use, and checkout, vs. promo code, credit, and refund, admin configuration and tips.
Updated on
June 4, 2026
A Shopify gift card is a prepaid product: the customer purchases store credit (e.g. €50) received via email or physical card, and then the recipient uses it at checkout via a unique code. Distinct from a discount code (one-off discount), the gift card represents a stored value that can be used multiple times until the balance is exhausted.
Summary
Definition of the Shopify gift card
The gift card works like a store wallet: an amount paid in advance, consumed on future purchases on the site (or in-store via Shopify POS).
Typical characteristics:
Concretely, this notably includes Unique code: alphanumeric series (e.g., ABCD-1234-EFGH); Balance: remaining amount after each order; Partial use: €30 used out of €50, €20 remaining; Digital format: email with code and link (most common).
We can also include Physical format: printed card with code (retail, events); Expiration: optional depending on merchant settings and local law.
Useful distinctions:
Concretely, this notably includes Gift card vs promo code: promo = discount (% or €) on an order; gift card = multi-use prepaid credit; Gift card vs discount voucher: voucher is often single-use; gift card retains balance; Gift card vs customer service credit: credit = credit issued after a return; gift card = voluntary purchase or gift; Gift card vs refund cash: credit card refund; gift card = alternative store credit.
We can also include Gift card vs loyalty program: loyalty points ≠ direct monetary credit (often); Gift card vs gift bank card (prepaid Visa): the Shopify gift card only works on your store.
Why gift cards are useful in e-commerce
Gift cards generate immediate revenue and often bring in customers who spend more than the balance.
Concretely, this includes Acquisition: the donor brings in a new customer (beneficiary); Average basket: additional purchase if the balance is €50 and the basket is €65 (AOV); Seasonality: Christmas, Mother's Day, corporate; Cash flow: collection before product delivery.
We can also integrate Loyalty: returning to the site to spend the credit (CLV); Customer Service: refunding with a gift card limits cash outflow; Cross-channel: online + POS if omnichannel.
Part of the balance may remain unused (breakage): a cash advantage, but to be legally framed (expiration, consumer information). Check the applicable rules according to the country.
Purchasing journey and gift card usage
Standard user journey:
The flow is generally structured as follows: Gift card purchase: dedicated product on the site, chosen amount (25 / 50 / 100 €); Payment: card, PayPal, etc. (order processed); Delivery: email to the recipient (immediate or scheduled date); Usage: code entered at checkout or via customer account.
The rest of the experience then specifies Order: balance deducted from the total; top-up by another method if needed; Remaining balance: reusable on the next purchase.
Special cases:
Concretely, this includes in particular Multiple gift cards: depending on settings, stackable or not; Refund on order paid by gift card: credit often reloaded onto the card; Manual admin issuance: customer service goodwill gesture without prior purchase.
Use case: Shopify scented candles shop. Paul buys a €75 gift card for Marie (scheduled birthday email). Marie orders a €59 diffuser + €4.90 shipping: total €63.90, remaining gift card balance €11.10. Three months later, she completes the purchase with an €18 candle: uses €11.10 gift card + €6.90 card. Additional turnover vs simple physical gift.
Gift cards and Shopify
Shopify integrates gift cards natively (Shopify Help Center).
In practical terms, this notably includes Gift card product: Products > Add product > Gift card, predefined or custom amounts; Admin > Gift cards: create, deactivate, view balance, history; Checkout: "Gift card or discount code" field; Expiration: Settings > Gift cards (duration or unlimited depending on plan/country).
It can also integrate Shopify POS: sales and card scanning in-store; Email notification: customizable template; Apps: bulk gift cards for B2B, card design, reporting.
Merchant checklist:
The process is generally structured as follows: Create gift card product with amounts aligned with the average basket value; Dedicated "Gift Card" page in navigation (Christmas holidays); Document T&Cs: expiration, non-refundable, non-exchangeable for cash; Train customer service: check balance, reassign if email is lost.
The next steps of the process then detail monitoring fraud (stolen codes, e-commerce fraud); Accounting: handle unused credit liabilities (accountant).
Points of vigilance to be aware of
In practice, you should closely monitor Attractive amounts: €25 / €50 / €100 + custom option; Email design: brand image, customizable message; Visibility: header/footer link, holiday campaign; Clear instructions: how to use the code at checkout.
Other points also deserve special attention: Refund alternative: offer gift card + 5% bonus if acceptable; Balance tracking: admin report of active cards; Quick deactivation if code is compromised.
Conversely, certain points can weaken the customer journey if the team does not anticipate them.
In practice, you should closely monitor No explanatory page (customer doesn't know they exist); Confusion between gift card / promo code in communication; Expiry date too short without clear legal notice; Impossible to combine gift card + promo (frustration) without a message.
Other points also deserve special attention: Customer service cannot check the admin balance; Refunding a purchased gift card in cash when T&Cs forbid it; Gift card email going to spam (configure SPF/DKIM).
Everything you need to know about the Shopify gift card
Key takeaways: Shopify gift card = prepaid store credit via a unique code and balance; Distinct from promos, discount codes, store credits, cash refunds, and loyalty; Benefits: acquisition, AOV, seasonality, cash flow, CLV, customer service; Customer journey: purchase, email, checkout usage, remaining balance; Shopify: gift card product, admin, POS, expiration, apps.
Associated terms, FAQ, and resources
Associated Terms
Checkout: entering the gift card code.
Promo code: a discount separate from the credit.
Order: purchase or use of a gift card.
Refund request: alternative to store credit.
Customer account: balance check depending on the setup.
FAQ
Gift card and promo code: what is the difference?
A gift card is a prepaid credit (like store currency). A promo code applies a discount to an order. The gift card can be used across multiple purchases until it is fully spent.
Can a gift card be used partially?
Yes. Shopify deducts the available amount from the total; the remaining balance remains on the card for a subsequent purchase. The remaining balance can be paid by credit card or another payment method.
How do I create a gift card on Shopify?
Create a gift card product (Products) for online sale. To manually issue an after-sales service credit: Admin > Gift cards > Create gift card.
Refund via gift card instead of cash?
A common practice to build loyalty and limit cash outflows, if your return policy and local regulations permit it. Inform the customer clearly before validation.
Going Further
Sources: Shopify Help Center (Gift cards), e-commerce gift card practices.
Enzo
June 4, 2026
