Gift Cards and Store Credit for a Small Shop
Last verified: October 2026
Gift cards bring in cash today, pull in new customers, and keep returns in the shop. Your POS probably already does them. Here's how to set them up, track balances, and handle the costs. Want a hand switching it on? My number is (330) 200-8042.
Gift Cards and Store Credit, at a Glance
Gift cards are a genuinely good tool for a small shop — cash up front, new customers, and returns that stay in the shop as store credit. Most POS systems (Square, Clover, Toast, Shopify) have gift cards built in and track balances automatically. The key thing to remember: a sold gift card is a liability — money you owe in goods until it's redeemed, not income the day it's bought. This guide covers physical vs digital, breakage, the real costs, and the general legal rules to confirm with your attorney. There's a printable version up top.
Common Questions
1 Do I need a separate service for gift cards?
Usually not. Square, Clover, Toast, and Shopify all have gift cards built in and track balances automatically. Check what your own system offers before paying for a separate program.
2 Is gift-card money income the day it's sold?
No — it's a liability until the card is redeemed, because you owe goods or services for it. The income is earned when it's spent. Track the outstanding balance and ask your accountant how to record it.
3 What is breakage?
Breakage is gift-card value that's never spent. Some may eventually become yours, but don't count it as income early — and unclaimed-property rules may apply. That's an accounting and legal question for the professionals.
4 Can I set an expiration date or fees?
Tread carefully. Federal rules (the CARD Act) generally limit how soon a card can expire — commonly at least five years — and restrict dormancy fees, and states add more. Confirm with your attorney and your state's law first.
5 What do gift cards cost me?
Card stock for plastic cards, and the normal processing fee on sales — including the sale where a card is redeemed. Digital cards often skip the stock cost. Confirm exactly how your system handles the fees.
6 How does store credit fit in?
Store credit works like a gift card pointed at returns — it keeps the money in your shop instead of refunding it out the door. Your POS tracks it the same way, and outstanding credit is a liability too.
Would You Rather I Just Help?
Switching on gift cards is one of those quick wins for a small shop — cash flow and new customers from a feature you probably already own. I'll set it up in whichever POS you run and prove it works end to end, with nothing to sell you. For the books and the legal fine points, I'll point you to your accountant and attorney. $99 flat for a visit, 30-day come-back-free.
Would you rather I just do this for you?
No shame in it — plenty of folks would rather hand it off, and that's what I'm here for. I'll come to your home, set it up right, and make sure it's working before I leave. Flat $99 per visit — no jargon, no upsell, and every visit is 30-day come-back-free.
Not a hardware job? I can often fix it remotely for $49 — a secure screen-share, up to 2 hours, that you watch the whole time and can end whenever (included free for $39/mo Support Plan members, and it counts toward the $99 if it turns out I need to come out).