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Shopify gift cards let customers purchase prepaid value that can be redeemed for products or services from the store that issued the card. Each gift card has a unique code and a balance that decreases as the customer uses it.
So, how do Shopify gift cards work? A merchant creates or sells a gift card, the customer receives the card and its unique code, and the recipient enters that code at checkout or uses it through Shopify POS. If the purchase costs less than the available balance, the remaining amount stays on the gift card for a future purchase.
Understanding the full process helps both merchants and customers avoid common problems with gift card codes, balances, redemptions, refunds, and expiration.
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What Is a Shopify Gift Card?
A Shopify gift card is a form of prepaid store value that customers can use to pay for purchases. It can be issued by a merchant or purchased as a gift card product from the store.
Shopify supports both digital and physical gift cards. Digital gift cards are typically delivered electronically, while physical cards can be used with Shopify POS when the store has enabled the appropriate gift card features.
Unlike a discount code, a gift card has a monetary balance. Instead of reducing the price of an order, it acts as a payment method that covers some or all of the customer’s purchase.
How Shopify gift card codes work
Each gift card has a unique code that identifies the card during checkout. When a customer uses the code, Shopify checks the available balance and applies the eligible amount to the order.
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The code can be used again if money remains on the card. For example, a customer with a $100 gift card who spends $40 can generally use the remaining $60 on a later purchase, subject to the store’s applicable terms and Shopify’s gift card rules.
How Do Shopify Gift Cards Work?
The Shopify gift card process is easiest to understand as a series of steps:
- The merchant creates or sells the gift card. The merchant can issue a gift card directly or create a gift card product that customers can purchase.
- Shopify assigns the gift card value and code. The card has a monetary value and a unique redemption code.
- The customer receives the gift card. Depending on the setup, the gift card can be delivered digitally or provided as a physical card.
- The recipient uses the gift card. The customer enters the code during online checkout or presents the gift card through Shopify POS.
- Shopify applies the available balance. The amount used is deducted from the gift card balance.
- The remaining balance stays available. If the entire balance is not used, the customer can use the remaining value on another eligible purchase.
This means a Shopify gift card does not have to be spent in one transaction. The balance can generally be used across multiple orders until it reaches zero or the card is otherwise no longer valid.
How to Create a Shopify Gift Card
Shopify merchants can create gift cards directly from the Shopify admin. There are two main approaches: creating a gift card for a specific customer or creating a gift card product that customers can purchase from the online store.
Creating a gift card for a customer
A merchant can issue a gift card directly from the Shopify admin without receiving payment for it. This can be useful for customer service situations, promotional rewards, compensation, or other forms of store credit.
To create one, go to Products > Gift cards in Shopify admin and select the option to create a gift card. You can then enter the initial value and associate the gift card with a customer when appropriate.
Creating a gift card product
If you want customers to purchase gift cards from your website, create a gift card product. You can add different denominations, product information, images, and sales channels.
Once the gift card product is published, customers can purchase a gift card through your store. After the order is fulfilled, Shopify creates the corresponding gift card with the purchased value.
How Do Customers Buy Shopify Gift Cards?
Customers can purchase a gift card from a Shopify store when the merchant has made gift cards available as a product or through an applicable sales channel.
The customer selects an available denomination, adds the gift card to their cart, and completes checkout like a normal purchase. Depending on the store’s configuration, the recipient information and delivery method can also be included.
Digital Shopify gift cards
Digital gift cards are delivered electronically, making them useful for last-minute gifts and customers who do not want to wait for physical shipping.
A digital gift card typically contains the recipient information, gift card value, and unique code needed for redemption.
Physical Shopify gift cards
Physical gift cards can be used by merchants that sell in person through Shopify POS. The card can have a physical design while its value and redemption activity are managed through Shopify.
Online gift card orders create digital gift cards rather than automatically producing physical cards.
How Do You Redeem a Shopify Gift Card?
Customers can redeem Shopify gift cards during online checkout by entering the unique gift card code in the payment section. If the store uses Shopify POS, customers can also redeem eligible gift cards in person.
Redeeming a gift card online
- Add products to the shopping cart.
- Proceed to checkout.
- Enter the Shopify gift card code in the gift card or discount code field provided at checkout.
- Apply the gift card.
- Pay any remaining amount with another eligible payment method if necessary.
The gift card balance can be applied toward the order total, including applicable taxes and shipping.
Redeeming a gift card in store
When a merchant uses Shopify POS, staff can redeem a gift card by scanning its barcode or entering its code manually, depending on the card and POS setup.
The gift card balance is then updated after the transaction.
What Happens If the Gift Card Does Not Cover the Entire Order?
If the customer’s gift card balance is lower than the order total, Shopify can apply the available gift card balance first and require another payment method for the remaining amount.
For example, if a customer has a $50 gift card and places a $75 order, the gift card can cover $50 and the customer can pay the remaining $25 using another eligible payment method.
Customers can also use another gift card when the available balance does not cover the full order.
How Do Shopify Gift Card Balances Work?
A gift card balance represents the amount of prepaid value that remains available for future purchases.
For example:
| Transaction | Gift Card Balance |
|---|---|
| Initial gift card value | $100 |
| Customer spends $35 | $65 remaining |
| Customer spends another $25 | $40 remaining |
| Customer spends the final $40 | $0 remaining |
The balance is not normally required to be spent in a single transaction. Customers can continue using the gift card while a valid balance remains.
Can Shopify gift cards be used more than once?
Yes. A Shopify gift card can generally be used across multiple purchases as long as it has a remaining balance and is still valid.
Can customers use multiple gift cards on one order?
Yes. Shopify allows customers to apply multiple gift cards to a single order, subject to the applicable checkout and store configuration.
Can Shopify Gift Cards Be Used With Discount Codes?
Yes. Shopify allows gift cards to be used together with discount codes. The discount reduces the applicable order amount according to its rules, while the gift card is used as a payment method toward the resulting amount.
This distinction is important because a gift card is not the same as a discount code. A discount changes the price of eligible products or an order, while a gift card provides prepaid value that can be applied as payment.
Can Shopify Gift Cards Be Used to Buy Another Gift Card?
No. Shopify gift cards cannot be used to purchase another gift card.
This restriction helps prevent gift card balances from being converted into additional gift card codes.
Can Shopify Gift Cards Be Used at Any Shopify Store?
No. A Shopify gift card is generally tied to the store that issued it. A customer cannot normally use a gift card from one Shopify store to pay for an order at another unrelated Shopify store.
For example, a gift card issued by Store A cannot simply be entered at Store B’s checkout because both stores happen to use Shopify.
Do Shopify Gift Cards Expire?
Gift card expiration depends on the merchant’s settings and the laws that apply to the business and customer. Gift card rules can vary by jurisdiction, so merchants should not assume that the same expiration policy applies everywhere.
Shopify provides gift card expiration controls, but merchants should review the applicable consumer protection laws before setting expiration dates or other restrictions.
Why gift card expiration matters
Expiration rules can affect both customer experience and legal compliance. A store should clearly communicate its gift card terms and make sure those terms comply with the laws that apply to its operations.
Shopify Gift Cards and Different Currencies
Currency can affect how a gift card is redeemed, particularly for stores that sell internationally through Shopify Markets.
Store currency gift cards can be redeemed in another currency through automatic currency conversion at checkout. Local currency gift cards have additional rules, including whether cross-currency redemption has been enabled.
Because exchange rates can change, the effective value of a gift card in another currency can also change between the time it is purchased and the time it is redeemed.
How to Manage Shopify Gift Cards
Merchants can manage created gift cards from the Gift cards section of Shopify admin. Management tasks can include reviewing cards, checking their status, changing expiration details where available, and handling customer service requests.
How to check a gift card
Merchants can locate created gift cards in Shopify admin and review information associated with the card, including its current balance and status.
How to handle a lost gift card
If a customer loses a gift card, the merchant can review the card in Shopify and follow the available replacement process. For physical cards, this can be particularly useful when the merchant can verify the original transaction or customer information.
How to deactivate a gift card
Merchants can deactivate gift cards when necessary. A deactivated gift card cannot be used for future purchases.
How Do Shopify Gift Card Refunds Work?
If a customer originally used a gift card to pay for an order, a refund can be applied back to the gift card in supported Shopify workflows. The gift card balance is then updated to reflect the refunded amount.
For orders paid using multiple payment methods, the merchant may need to allocate the refund between the original payment methods according to the transaction details.
Gift card refunds should be handled carefully because returning value to a gift card is different from issuing a new discount or simply canceling the original payment.
Shopify Gift Cards vs. Discount Codes vs. Store Credit
These three features can look similar from a customer’s perspective, but they serve different purposes.
| Feature | Gift Card | Discount Code | Store Credit |
|---|---|---|---|
| Has monetary value | Yes | No | Yes |
| Used as payment | Yes | No | Yes |
| Can be given as a gift | Yes | Sometimes | Usually tied to a customer |
| Has a remaining balance | Yes | No | Yes |
| Primary purpose | Prepaid value and gifting | Promotion or price reduction | Customer-specific credit |
Why Should Shopify Stores Offer Gift Cards?
Gift cards can give merchants another way to generate sales and introduce new customers to their store. The customer pays for the gift card before the recipient uses the value to purchase products or services.
Gift cards can also support customer loyalty, gifting campaigns, seasonal promotions, referrals, and customer service recovery.
For ecommerce stores, digital gift cards can also remove shipping delays and make last-minute gifting easier.
Make gift cards easy to find
Customers are less likely to purchase gift cards if they cannot find them. Consider adding a gift card link to your main navigation, gift guides, seasonal landing pages, email campaigns, and relevant product pages.
Explain the terms clearly
Make important information easy to understand, including available denominations, delivery method, where the card can be redeemed, expiration terms, and any applicable restrictions.
Protect gift card codes
Gift card codes have monetary value, so merchants should treat them as sensitive payment information. Avoid exposing complete codes unnecessarily and establish procedures for handling lost cards, suspicious transactions, and customer support requests.
Common Shopify Gift Card Problems
Why is my Shopify gift card not working?
Check that the gift card code was entered correctly, the card has not been deactivated or exhausted, and the customer is attempting to redeem it at the store that issued it.
Why can’t a customer redeem a gift card?
Possible reasons include an invalid code, insufficient balance, an inactive card, currency restrictions, or checkout conditions that prevent the gift card from being applied.
Why is the gift card balance different from what the customer expects?
Review previous transactions and refunds associated with the gift card. The balance changes when value is redeemed or returned to the card through a supported refund process.
Can a Shopify gift card be transferred to another store?
No. Shopify gift cards are tied to the store that issued them and cannot normally be transferred for redemption at another Shopify store.
Key Takeaways
- Shopify gift cards are prepaid store value that customers can use as a payment method.
- Merchants can create gift cards directly in Shopify or sell them as gift card products.
- Shopify supports digital and physical gift cards through its available ecommerce and POS features.
- Customers redeem gift cards by entering the unique code during online checkout or using the card through Shopify POS where supported.
- A gift card can generally be used across multiple purchases while a valid balance remains.
- Customers can use multiple gift cards on one order and can combine gift cards with discount codes.
- A Shopify gift card cannot be used to purchase another gift card.
- Gift cards are tied to the store that issued them and cannot normally be redeemed at another Shopify store.
- Expiration rules depend on the merchant’s settings and applicable laws, so businesses should review local requirements.
- Merchants should clearly communicate gift card terms and protect gift card codes because they represent monetary value.
People Also Ask About Shopify Gift Cards
How do Shopify gift cards work?
Shopify gift cards store a prepaid monetary balance that customers can use to pay for purchases from the store that issued the card. Customers enter the unique gift card code at checkout or use the card through Shopify POS where supported.
Can Shopify gift cards be used more than once?
Yes. A Shopify gift card can generally be used across multiple orders as long as a valid balance remains on the card.
Can you use multiple Shopify gift cards on one order?
Yes. Shopify allows customers to use multiple gift cards toward a single order, subject to applicable checkout conditions.
Can Shopify gift cards be used with discount codes?
Yes. Shopify gift cards can be used together with discount codes. The discount is applied according to its rules, and the gift card is then used as a payment method.
Can you use a Shopify gift card to buy another gift card?
No. Shopify gift cards cannot be used to purchase another gift card.
Do Shopify gift cards expire?
Shopify gift card expiration depends on the merchant’s settings and the laws that apply to the business. Merchants should review their local gift card requirements before setting expiration terms.
Can Shopify gift cards be used in store?
Yes. Customers can use Shopify gift cards in person when the merchant uses Shopify POS and has gift card payments enabled.
What happens if a Shopify gift card does not cover the full order?
The available gift card balance is applied to the order, and the customer can pay the remaining amount using another eligible payment method.
Can Shopify gift cards be used at another Shopify store?
No. A gift card is generally redeemable only at the Shopify store that issued it.
What happens to the remaining Shopify gift card balance?
The unused balance remains available for future eligible purchases while the gift card is valid. The customer can continue using the card until the available balance is exhausted or the card is otherwise no longer valid.
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