Gift Cards

Gift Cards

Overview

Gift cards let customers purchase store credit to give as gifts or to use themselves. They function as a form of payment at checkout — a customer can pay part of an order with a gift card and the remainder with a credit card, and any unused balance stays on the card. All major e-commerce platforms include native gift card functionality; custom implementations are only needed for headless storefronts or very specific accounting requirements.

When to Use This Skill

• When adding gift cards as a purchasable product that customers can send to others
• When implementing store credit as a refund mechanism in place of cash refunds
• When building bulk corporate gift card programs for B2B clients
• When allowing customers to split payment between a gift card and a credit card at checkout
• When you need a full balance history for accounting reconciliation or customer support

Core Instructions

Step 1: Determine the merchant's platform and choose the right tool

Step 2: Set up gift cards on your platform

Shopify

Shopify gift cards are available on Shopify, Advanced, and Plus plans (not Basic). They are issued as a product and redeemed at checkout using a 16-character code.

Enable and create gift cards:

1. In your Shopify admin, go to Products → Gift cards
2. Click Add gift card product
3. Set denominations (e.g., $25, $50, $100) — each denomination is a product variant
4. Add a title, description, and image for the gift card product
5. Click Save

Issuing a gift card to a customer:

• Via sale: When a customer purchases a gift card, Shopify automatically generates a unique code and emails it to the recipient
• Manually: Go to Customers → find the customer → Gift cards tab → Issue gift card; set the value and expiry date

Setting expiry dates:

1. In Settings → Gift cards
2. Enable gift card expiry and set the default expiration period
3. Note: Some jurisdictions prohibit gift card expiry (check local law before enabling)

Bulk gift cards for B2B or marketing:

1. Go to Products → Gift cards → Export to download existing codes
2. Use the Shopify Admin API (POST /admin/api/2024-04/gift_cards.json) to bulk-create gift cards programmatically
3. The API response includes the code — distribute via your email platform

Store credit as a refund: When issuing a refund, Shopify allows you to refund to a gift card instead of the original payment method:

1. Go to Orders → open the order → Refund
2. Under "Refund to", select Gift card and specify the amount
3. Shopify creates a new gift card and emails the code to the customer

WooCommerce

Install the WooCommerce Gift Cards extension (from WooCommerce.com) or YITH WooCommerce Gift Cards. These are the most feature-complete options.

Setup with WooCommerce Gift Cards:

1. Install and activate the plugin
2. Go to Products → Add New and set the product type to Gift card
3. Under Gift card data:
   • Set delivery type: email delivery (for digital) or printed card
   • Set available amounts or allow custom amounts
   • Configure the email template that sends the code to the recipient
4. Publish the product

Redemption: The plugin adds a "Gift card" field to the checkout page. Customers enter their code and the balance is deducted from the order total. Partial redemption is supported — remaining balance stays on the card.

Store credit as refund:

1. Open the order → Refund
2. The plugin adds a "Refund to gift card" option
3. A new gift card code is generated and emailed to the customer

Balance inquiry: Both WooCommerce Gift Cards and YITH provide a balance inquiry shortcode you can add to a page: [woo_gift_card_balance_check]

BigCommerce

BigCommerce calls these "Gift Certificates" and includes them natively.

Create and sell gift certificates:

1. Go to Marketing → Gift Certificates → Create Gift Certificate
2. Fill in:
   • To (recipient name and email)
   • From (sender name and email)
   • Amount: fixed value
   • Expiry date (optional)
3. BigCommerce sends the certificate code to the recipient via email

Selling gift certificates as a product:

1. Go to Products → Gift Certificates
2. Enable the gift certificate product page
3. Customers can purchase certificates in custom or fixed amounts directly from your storefront

Redemption: Gift certificate codes appear as a payment option at checkout. Partial redemption is supported — the remaining balance is saved on the certificate code.

Custom / Headless

For headless storefronts, implement a ledger-based gift card system. The ledger pattern records every debit and credit as an immutable transaction row — never update a balance column directly.

CREATE TABLE gift_cards (
  id           UUID PRIMARY KEY DEFAULT gen_random_uuid(),
  code         VARCHAR(32) NOT NULL UNIQUE,
  initial_value_cents INTEGER NOT NULL,
  currency     VARCHAR(3) NOT NULL DEFAULT 'USD',
  issued_to    VARCHAR(255),
  expires_at   TIMESTAMPTZ,
  is_active    BOOLEAN NOT NULL DEFAULT true,
  created_at   TIMESTAMPTZ NOT NULL DEFAULT NOW()
);

CREATE TABLE gift_card_ledger (
  id         UUID PRIMARY KEY DEFAULT gen_random_uuid(),
  card_id    UUID NOT NULL REFERENCES gift_cards(id),
  amount_cents INTEGER NOT NULL,  -- positive = credit, negative = debit
  type       VARCHAR(16) NOT NULL CHECK (type IN ('issue', 'redeem', 'refund', 'void')),
  order_id   UUID,
  created_at TIMESTAMPTZ NOT NULL DEFAULT NOW()
);

Balance calculation — always derived from the ledger, never from a stored column:

async function getBalance(cardCode: string): Promise<number> {
  const card = await db.giftCards.findByCode(cardCode.toUpperCase());
  if (!card || !card.is_active) throw new Error('CARD_NOT_FOUND');
  if (card.expires_at && card.expires_at < new Date()) throw new Error('CARD_EXPIRED');

  const result = await db.raw(
    'SELECT COALESCE(SUM(amount_cents), 0) AS balance FROM gift_card_ledger WHERE card_id = ?',
    [card.id]
  );
  return Math.max(0, parseInt(result.rows[0].balance, 10));
}

Partial redemption with row-level locking to prevent concurrent over-redemption:

async function redeemGiftCard(code: string, orderId: string, orderTotalCents: number) {
  return db.transaction(async tx => {
    // Lock the card row to prevent concurrent redemptions
    const card = await tx.raw(
      'SELECT * FROM gift_cards WHERE UPPER(code) = ? FOR UPDATE',
      [code.toUpperCase()]
    ).then(r => r.rows[0]);

    if (!card || !card.is_active) throw new Error('CARD_NOT_FOUND');

    const balance = await getBalance(code);
    const appliedCents = Math.min(balance, orderTotalCents);
    if (appliedCents === 0) throw new Error('ZERO_BALANCE');

    await tx.giftCardLedger.insert({
      card_id: card.id,
      amount_cents: -appliedCents,
      type: 'redeem',
      order_id: orderId,
    });

    return { appliedCents, remainingBalance: balance - appliedCents };
  });
}

Best Practices

• Use an append-only ledger — never update a balance column; record every debit and credit as a transaction row for a full audit trail (required for accounting reconciliation)
• Generate codes without ambiguous characters — omit 0, O, 1, I from the character set to prevent customer confusion when reading codes from email
• Never expose full card codes in URLs or logs — partial masking (ABCD-xxxx-xxxx-MNOP) is safe for display; full codes belong only in the issuance email
• Set accounting liabilities on issuance — gift card balances are a deferred revenue liability until redeemed; ensure your accounting integration records this correctly
• Check local regulations before setting expiry dates — many US states and other jurisdictions restrict or prohibit gift card expiration; verify before enabling
• Test the refund-to-gift-card flow — this is a common customer service scenario; ensure the newly issued card is accessible and redeemable before going live

Common Pitfalls

Related Skills

• @coupon-management
• @loyalty-points-system
• @stripe-integration
• @returns-management
• @checkout-flow-optimization