How Do I Integrate Custom Gift Cards Into My POS System?

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Gift cards do more than just offer another way for customers to pay. They boost sales, bring in new customers, and make your brand more visible. Adding gift cards to your Point of Sale (POS) system can seem challenging, but with the right approach, businesses of any size can implement them successfully.

POS systems make gift cards work seamlessly for both your staff and customers. They can instantly check balances, handle partial payments, and track usage patterns. Modern systems also support discount gift cards for special promotions that encourage customers to spend more or return during slower periods.

7 Steps to Integrate Custom Gift Cards into a POS System

Here are the seven essential steps to successfully integrate gift cards with your point-of-sale system. Following this process will help ensure a smooth implementation with minimal disruption to your daily operations.

  • Assess Your Current POS Capabilities

Before ordering cards or selecting providers, take time to understand what your current system can support. This foundation will guide all subsequent decisions.

Start by identifying the exact model and software version of your POS system. Different versions of the same POS software may have varying gift card capabilities. Check with your POS provider about native gift card features, as many modern systems include basic gift card functionality without additional modules.

For systems with built-in capabilities, determine whether they support:

  • Physical gift cards with magnetic stripes or barcodes
  • Digital gift cards through email or mobile apps
  • Integration with third-party gift card processors
  • Custom card designs or white-label solutions

If your current POS lacks gift card features, explore available add-ons or plugins. Many POS providers offer gift card modules as optional purchases. Third-party solutions that integrate with popular POS systems provide another avenue if native options are limited or too expensive.

Understand the pricing structure for gift card processing. Some providers charge per transaction, while others offer monthly subscription models. Calculate potential costs based on your expected gift card volume to budget appropriately for this new revenue stream.

  • Choose Between Closed and Open Loop Systems

Your gift card program can operate as either a closed or open loop system, each with distinct advantages and considerations.

Closed-loop systems only work in your business. These programs are:

  • Typically easier and less expensive to implement
  • Free from interchange fees that apply to bank-issued cards
  • More effective at driving repeat business to your specific locations
  • Easier to manage compliance requirements
  • Better for building your brand rather than promoting a card network

Open-loop systems function anywhere the card’s payment network (Visa, Mastercard, etc.) is accepted. These systems:

  • Offer customers more flexibility in how they use the gift
  • Often appeal more to gift purchasers concerned about the recipient’s preferences
  • Require partnership with a bank or payment processor
  • Involve more regulatory compliance and higher fees
  • May result in the gift value being spent elsewhere

Most small to medium businesses benefit most from closed-loop systems, which bring customers back to their stores while minimizing fees and complexity. This approach also works well for plastic discount cards that offer store-specific value or loyalty benefits.

  • Select a Gift Card Provider

Choosing the right provider for your custom discount cards is crucial for seamless POS integration and program success.

Established gift card providers typically offer:

  • Pre-built integrations with popular POS systems
  • Card production with various customization options
  • Processing services for transactions
  • Reporting tools to track program performance
  • Compliance with relevant regulations

When evaluating providers, prioritize those with proven integration experience with your specific POS system. Ask for references from businesses similar to yours using the same POS system to understand real-world performance.

Compare pricing structures carefully, looking beyond just per-card production costs. Consider:

  • Setup fees and minimum orders
  • Transaction processing fees
  • Monthly service charges
  • API access costs (if applicable)
  • Fees for additional features like digital cards or advanced reporting

Request sample cards to evaluate physical quality. Flimsy or easily damaged cards reflect poorly on your brand and may create frustration for customers. Look for durable materials with high-quality printing that will withstand regular handling.

  • Design Your Custom Gift Cards

Effective gift card design balances visual appeal with functional requirements for POS integration. When creating your design, ensure it includes:

  • Your business logo and brand colors
  • Clear space for required technical elements (magnetic stripe, barcode)
  • A unique identifier or card number location
  • Terms and conditions (often on the back)
  • Required legal language for gift cards in your jurisdiction

Work with your provider to understand technical specifications that affect scanning reliability. For example, very dark backgrounds can sometimes interfere with barcode scanning, while certain metallic inks might affect magnetic stripe performance.

Consider creating multiple designs for different occasions or seasons. Cards specifically designed for holidays, birthdays, or other events can increase their appeal as gifts. Some businesses find that seasonal discount gift cards with special designs drive additional sales during promotional periods.

  • Configure Your POS System

Start by installing any required software updates or modules according to your provider’s instructions. Some systems require specific gift card modules to be activated, while others may need API credentials entered for third-party processors.

Configure your system to:

  • Recognize gift cards as a distinct payment method
  • Process split payments (part gift card, part other payment)
  • Handle partial authorizations appropriately
  • Issue refunds correctly when purchases involve gift cards
  • Generate appropriate receipts showing remaining balances

Set up reporting to track key metrics such as:

  • Cards sold by date, location, and amount
  • Redemption patterns and average time to redemption
  • Remaining outstanding balances (liability tracking)
  • Partially used cards that might prompt return visits

Test the system thoroughly before launch using scenarios like:

  • Selling a new gift card
  • Checking a card balance
  • Using a gift card for a purchase less than its value
  • Using a gift card for a purchase greater than its value
  • Processing a return for an item purchased with a gift card

Many providers offer test cards specifically for this purpose. Document each process for staff training and troubleshooting reference.

  • Train Your Staff

Even the best gift card technology requires knowledgeable staff to implement successfully. Develop comprehensive training that covers:

  • How to sell and activate new gift cards
  • Checking balances for customers
  • Processing purchases using gift cards
  • Handling partial redemptions and split payments
  • Addressing common customer questions
  • Troubleshooting basic technical issues

Create simple reference guides for new employees or seasonal staff who may not have extensive training. Laminated, one-page cheat sheets kept near registers can be invaluable during busy periods when questions arise.

Consider role-playing scenarios during training to build confidence, particularly for handling more complex situations like:

  • Customers wanting to combine multiple plastic discount cards for a purchase
  • Cards that won’t scan properly
  • Balance disputes
  • Refund requests for gift card purchases

Train staff to promote gift cards appropriately, suggesting them for customers who seem unsure about what to purchase or mentioning upcoming holidays where gift cards might be appreciated. Ensure managers receive additional training on:

  • Accessing and interpreting gift card reports
  • Recognizing and addressing potential fraud
  • Managing the inventory of physical cards
  • Ordering replacement cards when supplies run low

  • Launch and Market Your Gift Card Program

With your technical integration complete, focus on maximizing program visibility and adoption. Create an effective launch plan that includes:

  • In-store signage at registers and high-visibility areas
  • Website promotion with easy online purchasing, if available
  • Social media announcements with visuals of your custom cards
  • Email marketing to your customer database
  • Staff incentives for promoting gift card sales

Consider special launch promotions such as:

  • “Buy a $50 gift card, get a $10 card free.”
  • Discount gift cards for early adopters
  • Entry into a prize drawing with a gift card purchase
  • Bonus loyalty points for gift card purchases

Make your gift cards visibly available near checkout areas where customers make impulse purchases. Custom display stands, drawing attention to your plastic discount cards, can significantly increase sales.

Moreover, develop seasonal marketing strategies, as gift card sales often spike around holidays. Create targeted campaigns for:

  • December holidays
  • Valentine’s Day
  • Mother’s and Father’s Day
  • Graduation season
  • Back-to-school periods

Track program performance closely during the initial launch period to identify and address any technical or operational issues quickly. Solicit feedback from both customers and staff to refine your approach as needed.

Final Call 

Running a business is tough. Your gift cards shouldn’t add to the challenge. At DuraCard, we’ve helped multiple small businesses set up gift card programs that actually drive revenue instead of creating headaches. Our plastic custom discount cards maintain their professional appearance through months of wallet wear and tear. 

What makes our clients stick with us? It’s simple: we’ve done this before. Our team has hands-on experience with virtually every POS system on the market. We’ll walk you through exactly what you need, handle the technical setup, and make sure your first transaction goes smoothly.

Call us for a consultation about your gift card needs. No complicated pricing tiers, no technical jargon, just gift cards that work from day one! 

FAQs

How much does it cost to implement a gift card program with my POS?

Costs vary by system and features. Expect $300-$1,000 for setup, $0.50-$2.00 per card, and either transaction fees (1-3%) or monthly service fees ($25-$100). Request detailed quotes based on your specific needs.

Can I use the same gift cards across multiple store locations?

Yes, with a centralized database that all locations can access. Most modern POS systems support this, though some require additional configuration or upgraded subscriptions. Confirm multi-location capabilities with your provider before ordering cards.

What information is stored on a gift card?

Gift cards typically store only a unique identifier, not the monetary value. The actual balance is maintained in your database. Physical cards use magnetic stripes, barcodes, QR codes, or RFID chips to link to this database, which tracks purchase date, value, transaction history, and current balance.

How do I handle gift card expiration dates and dormancy fees?

Laws vary by location. Many states prohibit quick expiration dates or require at least five years validity. Dormancy fees are also heavily regulated. Consult with a legal advisor about your local requirements and configure your POS system accordingly to stay compliant.