How To Create Gift Cards for Your Business (2026)

Gift cards let your business collect immediate payment for products or services customers will buy later. They also allow existing customers to introduce someone new to your business, expanding your customer base and brand reach in the process.

For the 2025 holiday season, gift cards topped US consumers’ wish lists. They were named a number one choice by 50% of respondents in a National Retail Federation (NRF) and Prosper Insights & Analytics survey, coming in ahead of clothing, books, and electronics.

To sell digital gift cards on Shopify, you’ll need to create a gift card product, set its values, and publish it to your sales channels. This guide covers how to complete the setup, issue cards to customers, and track purchases and unspent balances.

Why create gift cards for your business?

Gift cards give shoppers a way to buy from you when they don’t know which product their recipient wants. Service and appointment-based businesses can sell gift cards for future services, too. For example, a salon customer can buy a gift card toward a friend’s next haircut. Other gift card ideas for small businesses include subscriptions and gift baskets, which give buyers a more specific present to offer.

When deciding the type of gift cards your business should offer, consider how they might be able to contribute to your business goals, including helping you:

Reach new customers

Customers who give your gift cards to friends or family introduce potential new shoppers to your business. Recipients can select a product they want and try your brand for the first time, and once they redeem their gift card, you can engage them with marketing and sales strategies to drive repeat purchases, like product recommendations and access to VIP programs.

Increase order values

Recipients can apply a gift card toward a purchase that costs more than the card’s balance, and many shoppers may feel incentivised to spend more than they might if they were paying completely out of pocket.

In Fiserv’s Q4 2025 survey, 42% of US consumers said they spend more than the card’s value, and 41% used gift cards to supplement larger expenses. Recommend relevant accessories, upgrades, or additional products when recipients shop to encourage increased purchases.

Boost customer loyalty and retention

Offering gift cards as loyalty rewards gives existing customers a reason to return. You can also issue one after a poor experience, such as a shipping delay, once you’ve resolved the original problem. Or, use them as an incentive to get customer feedback, such as through a survey. Set reward amounts your margins can absorb, then track whether recipients redeem them and make another purchase.

How gift cards work

A gift card stores a monetary value that customers can spend on future purchases. The balance is associated with a physical card or digital code.

This is how a gift card moves from purchase to redemption:

1. The customer pays for the card. The buyer selects an amount and pays for the gift card upfront. Your business receives the payment before supplying the products or services the recipient will select.
2. Your business issues the card. The recipient receives a physical card or digital code linked to the purchase value. On Shopify, a purchased gift card is created when you fulfill the gift card order.
3. The recipient redeems the value. At checkout, the customer applies the card to their purchase. If the order costs more than the gift card’s available balance, they pay the difference using another payment method.
4. The system updates the balance. A redemption reduces the amount available for future purchases. You can review individual balances in your gift card records, and customers can check theirs through the link in their gift card email.

In a 2025 NRF and Prosper Insights & Analytics survey, restaurant gift cards were the type US consumers most planned to purchase for the holidays (27%). Bank-issued cards and department store cards followed at 25% each, then coffee shop cards at 20%.

Closed-loop gift cards

Closed-loop gift cards can only be redeemed with the issuing business or participating locations in its program. A gift card for your store directs the recipient’s spending back to your business.

These cards cost a business less because redemptions run through the business’s gift card system, avoiding the card-network processing involved in open-loop cards. The cost of software and payment fees still depend on your provider. Shopify gift cards follow this model and are included on all Shopify subscription plans. Check the gift card transaction fees when calculating your program’s costs.

Open-loop gift cards

Open-loop gift cards—also referred to as “bank gift cards” by the Federal Trade Commission—are issued through a bank and carry a payment network’s logo, such as Visa or Mastercard. Recipients can spend the balance at businesses that accept that network, subject to the card’s terms. An open-loop card gives the recipient more places to spend, so its value can go to a variety of different businesses or services.

How to create digital gift cards on Shopify

Shopify lets you sell gift cards as products or issue them to customers on behalf of a marketing initiative. You can sell a gift card as a product when a shopper wants to purchase one, or issue a card when you’re funding a loyalty reward, referral incentive, or goodwill gesture.

How to create a new gift card

Here’s how to create a Shopify gift card product for customers to buy:

1. Open the gift card section. Go to Products > Gift cards and click Add a gift card product.
2. Add the product details. Enter a title and product description, then upload an image. For example, name the product “Hydro Friends gift card.”
3. Review the currency settings. Select the currency and check the cross-currency redemption setting, which can’t be changed after creation.
4. Set the denominations. Enter the values customers can buy.
5. Select your sales channels. Use Sales channels and apps to set availability. Review the search listing and add any product tags.
6. Save the product. Click Save gift card product.

Shopify’s gift card value limits differ by how they’re created:

For direct gifting, activate recipient fields on a compatible theme. Buyers can then enter the recipient’s email on the product page, plus an optional name, message, and send date.

To issue a gift card to a customer as a reward or service recovery gesture:

1. Create the card. Go to Products > Gift cards and click Create gift card.
2. Enter its value. Review the currency settings and enter the amount in Initial value.
3. Assign the customer. Find or create their record in the Customer field. Add an internal note explaining the reward or adjustment.
4. Save and send. Click Save, then send a gift card. Select Send email, or Send SMS if the customer has only a phone number on their record.

Creating a card this way doesn’t collect payment from the recipient.

How to update a gift card

To edit the gift card product, go to Products > Gift cards > View gift card products. Open the product, change its details, and save. These edits don’t alter cards already issued.

Add each new denomination as a product variant.

To change an individual card’s expiration date:

1. Go to Products > Gift cards and open the card.
2. Click the pencil icon beside its code and expiry date.
3. Enter the new expiration details and click Save.

You can also review the card’s balance and activity on the same gift card details page.

For default expiration settings, go to Settings > Payments. Under Payment configuration, click Gift card expiration, select the terms, and save.

Check the rules where you sell before adding an expiration date. US federal law generally protects purchased gift card funds for at least five years, and state laws can provide longer protection. Shopify gift cards don’t expire by default.

How to track gift cards

Track gift card purchases separately from redemptions so you can see how much customers have paid and how much value they still hold.

To review your gift card finance reports:

1. Go to Analytics > Reports.
2. Filter Category to Finances and open Finance Summary.
3. Open Net sales from gift cards to review gift card product sales. Cards issued from your admin don’t appear as sales in this report.
4. Open Outstanding gift card balance to review issued value, redemptions, and the remaining balance.

Shopify records a gift card product purchase in its gift card finance report. When the recipient spends it on merchandise, the merchandise purchase appears in sales reports.

For individual cards, go to Products > Gift cards. Open a card to review its original value, current balance, and transaction timeline. Use the Issue method filter to separate purchased cards from cards you issued.

Review these metrics each month, using gift card records and order data:

• Redemption rate. The percentage of cards from a defined issue period that customers have used at least once.
• Outstanding balance. The total value customers have yet to redeem.
• Average additional spend. The average amount paid through other payment methods on orders using gift cards.
• Customer acquisition. The number of customers who used a gift card on their first purchase.
• Channel performance. The value redeemed online compared with in-store redemptions.

If cards go unused for months, test a reminder with redemption instructions. If you need automatic balance reminders, bulk card distribution, or more detailed program reporting, compare gift card management software with Shopify’s built-in tools.

How to create physical gift cards with Shopify

With Shopify POS, you can sell physical gift cards at the counter and let recipients spend the balance in-store or online. To set up the cards before your first sale:

1. Order your cards. The Shopify Hardware Store directs orders to its printing partner, eCardSystems. You can select from premade designs, supply branded artwork, or order cards from another printer that meets Shopify’s code requirements.
2. Enable physical card issuance. In your Shopify admin, go to Sales channels > Point of Sale. Under Customize the in-store experience, click Edit for POS app, then Settings. Under Gift cards, set Type to issue to Digital or physical and save. Create a gift card product first if your store doesn’t have one.
3. Activate gift card payments. In the POS app, open Settings > Checkout > Payments and turn on Gift cards.
4. Sell and issue a card. Add the Add gift card tile to your POS smart grid. Tap it, select Physical gift card, and enter a preset or custom value. Scan or enter the card’s code, tap Add, and complete checkout using the customer’s payment method.
5. Accept the card at checkout. When the recipient shops, tap Checkout > Gift card. Scan or enter the code, then tap Redeem. Use Add payment to collect any remaining amount. The receipt shows the card’s remaining balance.

The code format and activation process depend on where you order your gift cards from:

Customers can enter the physical card’s code at online checkout. An online gift card purchase creates a digital card, but it doesn’t automatically assign value to a particular printed card.

During this time, you should also budget for printing, packaging, and shipping your gift cards. For example, Duracard costs between 25¢ and $1.44 per card, depending on the order, and has a minimum order quantity of 50 cards. Before committing to a supplier, request a quote for your artwork, quantity, and code printing.

Shopify estimates that most merchants receive cards ordered through its partner within five to seven business days. Confirm delivery timing before announcing a launch, and allow time to review the proof and correct printing errors.

How to create gift cards with third-party apps

Install a gift card app when you need features such as bulk imports, customer-selected amounts, or automated balance reminders. Compare free and paid plans against the specific feature you need. As you browse, look for the Built for Shopify badge, which identifies apps that meet Shopify’s standards for performance, design, and integration. These include:

• Gift Card Factory. Create, import, update, and send gift cards in bulk. It also has balance reminders and scheduled delivery.
• GV: Gift Cards & Store Credit. Customize gift card designs and emails. Customers can also add gift messages and schedule delivery, and stores can send balance reminders.
• Vify: Professional Gift Cards. Select custom gift card amounts and check balances. Adjust balances, customize emails, and configure expiration reminders.

After installation, configure the app in your Shopify admin and test a purchase, delivery, and redemption before promoting the offer.

How to design gift cards for your business

Design the card, product image, and delivery email together so recipients can recognize your business and branding from purchase through redemption.

Match your card design to your brand

Use your brand’s logo, colors, and typography across physical cards and digital product images. Include your store name and website so someone who receives the card knows where to shop. Reserve space for a short personal message, and keep redemption details readable against the background.

Shopify’s media generation tool lets you change backgrounds and edit images with text prompts in the admin’s file editor. Use it to prepare artwork for your gift card listing. Canva Magic Design and Google Nano Banana have additional layout or image generation options. Add your logo and redemption details after generating artwork, then check every letter and number for accuracy. Keep an editable master file so you can update seasonal designs.

Consider card size, printing, and finishing

Standard wallet-sized gift cards measure about 3.375 inches by 2.125 inches (85.6 millimeters by 54 millimeters). Download your printer’s template before designing: it marks the cut line, bleed area, and safe space for text.

Prepare images at 300 dpi at their final size and use the printer’s requested color mode. Confirm the required file format and whether fonts need embedding or outlining. Keep logos and redemption codes inside the safe area.

Compare PVC, recycled plastic, and paper stock. Ask for samples and quotes for matte, gloss, or foil finishes. Test a printed sample to confirm that the code scans properly and that small text is legible.

Design a branded delivery email

On Shopify, the gift card delivery email is a customer notification you control. Go to Settings > Notifications > Customer notifications > Gift cards > New gift card. Click Edit code to customize its content or image, then preview and save.

Display the gift card code, value, redemption instructions, a Shop Now link, and customer service contact details. Check the layout on mobile to ensure recipients can read the code and open your store.

Use Shopify Messaging to promote gift cards through branded email and SMS campaigns to subscribers. Manage the card’s delivery through the New Gift Card notification.

Tips for using gift cards to drive sales and customer loyalty

Select the right gift card format for your customers

To find the most success with gift cards, you’ll want to offer the format that suits your customer base best. You can offer digital gift cards for online shoppers, physical cards for customers who want something to wrap, or, if you sell online and in store, let recipients redeem either format across both channels. Consider timing and delivery costs, too. A last-minute Mother’s Day shopper may need their gift card delivered via email; meanwhile, mailing a physical card means you’ll also incur postage and handling costs.

Offer gift cards in your loyalty program

Use gift cards in your customer loyalty program as birthday rewards, or let members exchange points for cards. If your business has a mobile app, make those rewards accessible there. Set your budget using the number of eligible members and the value of each reward. A $10 birthday gift card offered to 500 members, for example, represents $5,000 in potential redemptions.

Use them as referral prizes

Reward customers with a gift card when someone they refer completes a purchase. Explain how you track referrals, when you issue rewards, and how customers can redeem them.

For example, Polysleep has offered $25 to $50 gift cards for referrals, then invited its strongest referrers into an affiliate program. “Whenever someone purchases from us, they’re going to get a post-purchase call from our customer service to thank the person and give them the opportunity to monetize a referral,” says Cofounder Jeremiah Curvers, who described the approach in a Shopify Masters interview. “They could do that very easily using Friendbuy.”

You can also reward both sides of the referral. HEATONIST gives new customers $10 off their first order and gives the referring customer a $10 reward after a successful referral.

Offer gift cards as a response to complaints

After resolving a shipping delay, damaged order, or service problem, offer a gift card as an apology and an invitation to shop again. Give staff rules for issuing these cards, such as the flexibility to authorize a $10 card for an unhappy first-time shopper and a $20 gift card for a VIP customer. Define which situations qualify and when staff needs a manager’s approval.

Protect against gift card fraud

Scammers may buy gift cards with stolen payment details or pressure customers to purchase cards for them. Use these process checks to review suspicious orders and help customers at checkout:

• Limit gift card purchases. Set limits appropriate to your store, like five cards or $500 per transaction, and review requests for larger purchases.
• Delay delivery for high-value cards. Review large or suspicious orders before releasing gift card codes. Shopify holds medium- and high-risk gift card orders for manual fulfillment, giving you time to investigate.
• Use fraud detection tools. Check Shopify’s fraud analysis for payment indicators and available risk recommendations on eligible online credit card orders.
• Train retail staff. Teach cashiers how to recognize customers who are being pressured to buy gift cards or attempting to split an unusually large purchase. Set an escalation rule, such as manager approval for purchases over $100.

The FTC’s Stop Gift Card Scams toolkit includes free display signs, cashier reference cards, and social media materials in English and Spanish. Use them to train staff and warn shoppers before they buy.

Take a seasonal approach

Promote gift cards around occasions your customers already shop for, including Christmas, Mother’s Day, and Father’s Day. NRF’s Father’s Day survey put planned gift card spending at $26.90 per person in 2026, up from $25.09 in 2025.

You can also feature gift cards in your holiday gift guides, marketing emails, and social posts—you can even create seasonal designs to better entice shoppers to buy tangible gift cards, as MYKITCO did with their “Have yourself a merry little Kitmas” gift card. Once shipping deadlines for special occasions have passed, highlight digital delivery for last-minute shoppers.

Discount your gift cards

Offer a discount on higher denominations, such as 10% off gift cards worth more than $300, allowing the customer to pay less upfront while the recipient receives the card’s full redemption value. Account for that difference when setting your promotion budget.

Shopify lets you offer percentage or fixed-amount discounts on specific gift card products or variants through discount codes and automatic discounts. You can promote an exclusive offer to repeat customers using customer segments in Shopify Messaging.

Create a social media contest

Offer a gift card as a contest prize so the winner can choose their own products. Set a prize value your budget can support, and explain how to enter, when entries close, and how you’ll select the winner. Promote the contest through posts and stories. Answer questions, respond to complaints, and acknowledge customers who share the promotion.