Gift Card Sales Tools for Shops Compared
Gift cards are the easiest present a customer can buy and one of the easiest products a small shop can sell, as long as the system behind them works. This guide compares four gift card sales tools that small shops, cafes and service businesses commonly use, explains what to look for, and gives you a simple plan to get everything running well before the holiday season.
Key takeaways
- The best gift card tool is usually the one built into, or connected to, the system you already use to take payments.
- Square Gift Cards and Toast suit shops and restaurants already on those point-of-sale systems; Shopify suits online stores; GiftUp! adds digital gift cards to many websites.
- Check that cards work in store and online, how balances are tracked and what reports you get.
- Gift card rules on expiry, fees and accounting vary by location, so check official guidance before you launch.
Early September is a good moment to sort this out. The holiday gift season is still weeks away, which gives you time to set up, test and design your cards without a queue at the counter. Many shoppers who cannot decide on a present reach for a gift card, and a shop that makes buying one quick and pleasant collects those sales.
Below you will find what a gift card tool should do, a plain comparison of four options, a scorecard template and a setup checklist. Features, fees and privacy policies change often, so check each provider's current details before you sign up.
What to look for in a gift card tool
Before comparing brands, get clear on the jobs you need done. A gift card tool for a single cafe looks very different from one for a shop that sells online and in two locations.
- Where cards are sold. At your counter, on your website, through a link on social media, or all three.
- Where cards are redeemed. Ideally anywhere you take payment, with one shared balance.
- Physical and digital options. Plastic or printed cards for the counter, and emailed cards for last-minute buyers.
- Balance tracking. Customers and staff should be able to check a balance quickly.
- Reporting. You need to see cards sold, cards redeemed and outstanding balances, which matters for your books.
- Branding. Your logo, colors and a short message make the card feel like a real gift.
- Security. Unique codes, staff permissions and a way to deactivate a lost card.
Pro tip
Start with your point-of-sale or store platform. If it offers gift cards, test that first. A built-in tool keeps balances, sales and refunds in one place, which saves you from reconciling two systems every month.
The four gift card tools compared
Each of these tools has a natural home. The right choice depends mostly on how you already take payments.
Square Gift Cards
Square Gift Cards works with Square's point-of-sale and online tools. Shops already on Square can typically sell physical and digital cards and redeem them across their Square setup. For a retail shop, salon or cafe that already runs on Square, it is the obvious first test because there is no extra system to connect.
Shopify
Shopify includes gift card features for stores on the platform, depending on your plan. Customers can buy a digital card on your online store, and shops that use Shopify's point of sale can often sell and redeem them in person too. If your main channel is a Shopify store, check which gift card features your current plan includes.
GiftUp!
GiftUp! is a standalone digital gift card tool that you can add to many kinds of websites, including service businesses with no online shop at all. It is popular with spas, studios, tour operators and restaurants that want to sell gift cards or vouchers online. Check how it connects to your payment processor and how redemptions are recorded in person.
Toast
Toast is a restaurant point-of-sale system with its own gift card features. For restaurants, cafes and bars already using Toast, keeping gift cards inside the same system means staff redeem them in the same flow as any other payment. If you are not a food business or not on Toast, it is unlikely to be your pick.
| Tool | Natural fit | Main strength | Check before choosing |
|---|---|---|---|
| Square Gift Cards | Shops and cafes on Square | One system for sales and redemption | Card ordering options and fees |
| Shopify | Online stores on Shopify | Built into the store checkout | Which plans include gift cards |
| GiftUp! | Service businesses and websites without a shop | Adds digital cards to many sites | Payment setup and in-person redemption |
| Toast | Restaurants using Toast | Redemption inside the restaurant POS | Card design and online sales options |
This is general positioning, not a ranking. Check each provider's current features, pricing and privacy policy.
Common mistake
Running gift cards on a separate system that does not talk to your till. Staff end up writing codes on paper, balances drift and a customer eventually finds their card "has nothing on it." Whatever tool you choose, test a full sale and a partial redemption before you launch.
How to choose and set up your gift card tool
Use this sequence to go from "we should sell gift cards" to a tested, working system.
- Map your payment setup. Write down your point of sale, your website platform and any booking system you use.
- Check what you already have. See whether your current system includes gift cards and on which plan.
- Shortlist one or two tools. Favor the built-in option, and add a standalone tool only if you need something it cannot do.
- Decide your formats. Physical cards, digital cards or both, and a few set amounts plus a custom amount.
- Write your terms. Cover how cards are used, what happens if one is lost and how balances can be checked. Keep them short and clear.
- Run test transactions. Buy a card online, redeem part of it in store, check the balance and refund a test order.
- Train staff. Show everyone how to sell, redeem and check balances, and what to do when a code does not work.
- Launch and promote. Add cards to your website, counter, receipts and emails before the gift season starts.
Gift card tool scorecard template
Score each tool from 1 to 5 after your tests. The scores below are made-up examples for illustration only.
| Criteria | Tool A (example score) | Tool B (example score) | Notes |
|---|---|---|---|
| Sell in store and online with one balance | 5 | 3 | Tool B needed a manual code check in store |
| Digital card arrives quickly and looks branded | 4 | 5 | Tool B allows a custom message and image |
| Reports show sold, redeemed and outstanding | 5 | 4 | Both export to a spreadsheet |
Hypothetical example
Imagine Theo, who runs a small yoga studio in Bristol. He takes payments through a booking system and has no online shop. His till does not offer gift cards, so he tests GiftUp! on his website and checks how his front desk can redeem codes against class passes. In his test, a friend buys a made-up £40 card online, books two classes and has the remaining balance confirmed by email. Theo writes a one-page desk guide, adds a "Give the gift of yoga" button to his site in October and mentions it in his newsletter.
Rules, accounting and fraud basics
Gift cards look simple, but they carry a few responsibilities. This section is general information, not legal, tax or accounting advice. Rules differ between countries, states and regions, so check official guidance and speak with an accountant or adviser about your situation.
Expiry and fees
Many places have rules about how long gift cards must remain valid and whether you can charge fees on unused balances. These rules vary, and some apply differently to vouchers for a specific service. Check the official consumer protection guidance for every place you sell before you set an expiry date or any fee.
Accounting for unredeemed balances
Money from a gift card sale is generally treated differently from a normal sale until the card is used, because you still owe the customer goods or services. How and when you record it, and how sales tax or VAT applies, depends on your location and the type of card. Ask your accountant how they want gift card sales and redemptions recorded, and make sure your tool's reports give them what they need.
Fraud and lost cards
Protect your cards with unique codes, limit who can issue or adjust balances and review unusual activity, such as many high-value cards bought online in a short time. Decide in advance what you will do if a customer loses a registered card, and put it in your terms.
Pro tip
Add a short "check your balance" link or instruction to every digital card and receipt. It cuts down on calls and emails in January, when people start spending their presents.
Selling more gift cards this season
Once your tool is ready, a few simple moves help customers notice it:
- Make cards visible. Place physical cards at the counter and add a clear "Gift cards" link to your website menu.
- Offer last-minute digital cards. Promote emailed cards in the final days before the holidays, when shipping is no longer an option.
- Suggest them at checkout. A friendly line from staff, or a note on receipts, reminds regulars that cards exist.
- Think about corporate buyers. Local businesses buying thank-you gifts may want several cards at once, so make bulk orders easy.
Your gift card setup checklist
- List your point of sale, website platform and booking system
- Check whether your current system already offers gift cards
- Shortlist one or two tools and read current pricing and privacy terms
- Choose physical, digital or both, and set your card amounts
- Check expiry, fee and tax rules for every place you sell
- Write short gift card terms and a balance-check method
- Run test sales, partial redemptions and a refund
- Train staff and add cards to your counter, site and emails
Frequently asked questions
Should I sell physical or digital gift cards?
Many shops offer both. Physical cards suit counter sales and people who want something to wrap. Digital cards suit online shoppers and last-minute buyers. If you can only start with one, choose the format your customers ask for most.
Can a gift card bought online be used in my shop?
With many tools, yes, especially when the same system runs your website and your till. If you use a standalone tool, test how staff look up and redeem online codes in person before you launch.
Can I put an expiry date on my gift cards?
It depends on where you sell and the type of card. Rules on expiry and fees vary by country and region, so check official consumer protection guidance before you set any expiry date.
Related reading
The bottom line
A good gift card system is quiet: customers buy cards easily, staff redeem them without fuss and your reports show every balance. Start with the tool built into your current payment setup, add a standalone option only if you need it, and test a full sale and redemption before the season begins.
Set aside an hour this week to check what your system already offers. With cards ready by October, you will be selling gifts to undecided shoppers long before the December rush.
