Advantages to accepting gift cards at your small business

1. Attract new customers

Gift cards are usually effective at a business accepting credit cards for products or services that most people want or need – at an electronics store, for example, which carries higher-priced items that many customers wouldn’t normally buy. Gift cards encourage people who might not otherwise visit your business to come in and browse. This may also result in future visits to make additional purchases.

2. Increase brand awareness

When your gift card is designed to match your company logo and brand, it essentially works as a marketing tool in the customer’s pocket. Include gift cards as a visual merchandising element at point of sale to remind your customers to purchase. As people purchase more gift cards to give to their friends on birthdays and holidays, your brand awareness continues to increase with new customers.

3. Improve sales by selling and accepting gift cards

Although gift cards are often set to a specific amount, many customers may end up spending more. The gift card encourages customers to enter the store and browse products. Once they’ve started shopping, it is likely that they’ll end up finding a product that costs slightly more than the gift card’s value. Paying only a fraction of the price is still better than paying in full, and your customer will leave satisfied.

4. Reduce fraud

The use of an electronic gift card allows for partial redemption, leaving the rest of the balance stored on the gift card and eliminating cash backs. You can also use gift cards for store credit on product returns, helping to reduce fraud that occurs when customers try to make expired returns for cash. Issuing gift cards in place of cash encourages more sales.

How can we help?

If you want to learn more about how Clover can help you accept payments, run your business and sell more, please contact your Clover Business Consultant. You can also follow us on Facebook and Instagram.