Unwrap Holiday Success with POS Gift Cards ConnectPOS Content Creator November 22, 2023

Unwrap Holiday Success with POS Gift Cards

POS Gift Cards

The holiday season is upon us, and businesses are gearing up to make the most out of this festive time of year. In the world of retail and hospitality, one powerful tool that can significantly boost your holiday sales is the POS gift card. Gift cards serve a significant purpose, particularly during the holiday shopping season, when 14.1% of total retail sales take place. Major online retailers commonly provide them to stimulate sales and expand customers’ choices when making purchases.

In this article, we’ll dive deep into what POS gift cards are, how they work, and why they are a game-changer for businesses during the holiday season.

What is a POS gift card and how does it work?

POS gift cards are prepaid cards or certificates that customers can purchase and then redeem for goods or services at a later date. They function similarly to traditional gift certificates but are often plastic or digital, making them more versatile and convenient. These cards are usually issued by retailers or businesses and can be used at their physical locations or online.

Using POS gift cards is really simple. When customers buy a gift card in the store, the usual process is as follows:

  • An employee collects the payment upfront, as in any regular transaction.
  • The employee then chooses the gift card program on the POS and swipes a new gift card through the terminal.
  • The employee inputs the dollar amount into the POS system to process the payment.
  • A receipt displaying the card value is printed, which can be presented to the customer along with the card.
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When a customer opts to use a gift card for a purchase in the store:

  • An employee accepts the card, similar to any other payment method.
  • The gift card option is selected on the POS interface.
  • Similar to credit cards without chips, the gift card is swiped through the card reader, utilizing its magnetic stripe.
  • The merchant account processor handles the approvals, and the purchase amount is deducted from the card balance.
  • A receipt is printed to indicate the remaining balance.
  • If the purchase uses up the entire gift card balance, the remaining transaction balance may require an alternative payment method, such as a credit card.
  • The customer receives their card back, or if the balance is fully utilized, the employee may dispose of or recycle the card.

When a customer wishes to purchase (and use) a gift card online (an egift card):

  • A shopper visits your online store and adds a gift card to their cart, choosing a value or entering a custom value.
  • They proceed to pay for their cart as they would normally.
  • If they purchase a digital gift card, they receive an email with the code immediately.
  • Using either the digital code or the numbers associated with the physical gift card (found either on the card itself or on the accompanying receipt), the shopper pays for their next online purchase by selecting the gift card option during checkout.

5 Reasons to offer POS gift cards for your business

Running and growing a small business is quite tough. You should take of advantage the POS gift cards during the holiday season can be a smart move for your small business. With so many benefits bring for your business as follows:

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Increase order values

During the holiday season, people are often on the lookout for the perfect gift, and they tend to spend more generously. POS gift cards can encourage customers to increase their order values. 

For instance, if a customer initially planned to buy a single item, a gift card purchase might motivate them to add more to their cart to reach a higher total value. This not only boosts sales but also enhances the shopping experience, as customers feel like they are giving a more substantial gift.

Add new items without incurring additional costs

When you introduce new products or services during the holiday season, it can be a risk. Investing in inventory or creating new offerings can be expensive and may not pay off. 

In addition, POS gift cards offer a brilliant solution to this dilemma. By selling gift cards, you can test the demand for new items without incurring additional costs. If the gift cards for these new items sell well, you can confidently invest in expanding your offerings.

Attract new customers

Gift cards make for excellent presents, and many people turn to them when they are unsure about what to buy. 

When your business offers POS gift cards, you become the go-to destination for gift shopping, attracting new customers who may not have visited your store or website otherwise. These new customers can become loyal patrons, providing long-term value to your business.

Provide secure, practical gift choices

Gift cards offer a secure and practical gifting solution for both the giver and the receiver. They eliminate the stress of choosing the perfect gift and ensure that the recipient gets something they truly desire. 

For the business, this means fewer returns and exchanges, reducing the administrative burden during the hectic holiday season.

Reduce returns and encourage positive reviews

Returns can be a significant challenge for businesses, especially during the holidays. When customers use gift cards to purchase items, they are more likely to select something they genuinely want, reducing the likelihood of returns. 

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Additionally, a smooth and positive shopping experience with gift cards can lead to happy customers, who are more likely to leave positive reviews and recommend your business to others.

ConnectPOS makes holiday success for your business

To fully capitalize on the benefits of POS gift cards during the holiday season, you need a reliable and efficient POS system. ConnectPOS is a leading name in this field, and it offers exceptional integrations for loyalty programs and gift cards.

ConnectPOS offers seamless integration with various loyalty program tools such as Loyalty Lion, Amasty, and Aheadword. These integrations allow you to reward your customers for their loyalty and make the holiday shopping experience even more exciting. 

You can offer points, discounts, or other incentives to encourage customers to return and make repeat purchases. During the holiday season, these loyalty programs can create a sense of urgency and motivation, driving sales and fostering customer loyalty.

ConnectPOS also offers a robust gift card feature. With this, you can easily create and manage gift cards for your business. These gift cards can be customized with your branding and tailored to your holiday promotions. 

You can sell and redeem these gift cards seamlessly through your POS system, providing a convenient and efficient shopping experience for your customers.


In conclusion, POS gift cards are a fantastic way to unwrap holiday success for your business. They increase order values, allow you to add new items without incurring additional costs, attract new customers, provide secure and practical gift choices, and reduce returns while encouraging positive reviews. To make the most out of POS gift cards, consider integrating them with ConnectPOS and leveraging its loyalty program and gift card features. This holiday season, embrace the power of POS gift cards and watch your business thrive during the festive season.

If you have any questions related to POS gift cards, don’t hesitate to contact us to answer.

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