How to Sell Gift Cards Online for a Local Business

Every December, someone calls your shop asking, “Do you sell gift cards online?” If the answer is “only in person,” that sale probably goes to a business that does. Digital gift cards, often called eGift cards, let customers buy from anywhere, at any hour, and send the card by email or text in seconds. For a salon, cafe, restaurant, boutique or studio, that means sales you would otherwise miss and new customers who show up already paid.

The setup is easier than most owners expect. The parts that trip people up are the rules on expiration dates and fees, and keeping track of money customers have paid but not yet spent. This guide covers both.

Why sell gift cards online

Digital gift cards work for almost any local business that sells products or services in person:

• Cash up front. You get paid when the card is sold, not when it is used.
• New customers. Many recipients have never visited before.
• Last-minute gifting. Online cards solve the “I forgot a gift” moment on holidays and birthdays.
• Bigger tickets. Recipients may add their own money on top of the card when they redeem.
• Low cost to run. No printing, mailing or plastic inventory.

Key takeaway: Selling gift cards online is mostly a settings change in tools you already have. The real work is getting the policy right and tracking unredeemed balances so the money on your books matches what customers can still spend.

Choose where to sell your gift cards

Most local businesses already have a tool that can sell eGift cards. Start there before adding a separate app.

The most important feature is one shared balance. A card bought online should redeem in person, and a card bought in person should redeem online, without staff doing math on paper.

Fees vary by provider and change over time. Square, for example, currently lists free eGift card setup, a load fee on the value added to each card, and standard card processing fees on the purchase. Check your provider’s current pricing page before you set your amounts. Our guide to credit card processing fees explains how those charges stack up.

Step-by-step: set up digital gift cards

Step 1: Write your gift card policy

Before you flip any switches, decide:

• Amounts. Preset values (for example $25, $50, $100) plus a custom amount option.
• Expiration. Many businesses simply choose “no expiration,” which is the simplest way to stay compliant. See the legal section below.
• Fees. Avoid inactivity or service fees unless you have checked federal and state law.
• Refunds and cash back. Some states require cash back for small remaining balances.
• Lost cards. Digital cards can be re-sent by email, which is a selling point.

Step 2: Turn on eGift cards in your platform

In most POS and ecommerce tools, this takes minutes. You will usually:

1. Enable gift cards in settings.
2. Upload a design or choose a template with your logo.
3. Set preset amounts and a minimum and maximum custom amount.
4. Write the delivery message and confirm the terms shown to buyers.
5. Choose delivery options, such as email now, email on a scheduled date, or text.

Step 3: Put the “Buy a gift card” link everywhere

A gift card page nobody can find won’t sell. Add the link to:

• Your website header or footer and the homepage.
• Your Google Business Profile, Apple Maps listing and social media bios.
• Email newsletters and receipts.
• A QR code sign at the counter.

Our guides to building a small business website and email marketing for beginners cover where those links work best.

Step 4: Test the full cycle

Buy a card yourself, send it to a colleague, redeem part of it in store, then redeem the rest online. Check that the balance updates correctly at each step and that the receipt shows the remaining balance.

Step 5: Train staff

Staff should know how to look up a card by code or customer name, take a partial payment, re-send a lost eGift email, and handle questions about balances. Put a 1-page cheat sheet by the register.

Gift card expiration and fee laws

Gift card rules come from both federal and state law.

Federal rules

The federal Credit CARD Act of 2009 led to gift card rules in Regulation E, 12 CFR 1005.20, which took effect in August 2010. For gift cards sold to consumers, the key points are:

• Expiration. Funds generally can’t expire until at least 5 years after the card was issued or last loaded.
• Inactivity fees. Dormancy, inactivity or service fees are allowed only after 12 months with no activity, no more than 1 fee per month, and only if clearly disclosed.
• Disclosures. Expiration dates and fee terms must be disclosed clearly, including on the card itself, before purchase.
• Exclusions. Loyalty, award and promotional cards are excluded from some rules but still need certain disclosures, such as a statement that the card was issued for promotional purposes.

State rules can be stricter

Many states go further. California, for example, generally bans expiration dates and service fees on gift certificates. Under California Senate Bill 22, which became operative on April 1, 2026, gift cards with a remaining balance under $15 must be redeemable for cash on request (up from $10), and the definition of gift certificate expressly includes electronic gift cards. Other states have their own cash-back thresholds and rules.

The practical answer for most small businesses: no expiration dates, no fees, and cash back for small balances where your state requires it. Check your state attorney general or consumer protection office for current rules. This is not legal advice.

Promotional cards are different

A free $10 card you hand out in a promotion (“Spend $50, get $10”) is a promotional card, not a gift card someone paid for. Promotional cards can usually carry an expiration date, but they must be clearly labeled as promotional, with the expiration shown. Keep paid gift cards and promotional credit separate in your system.

How to track unredeemed balances

When a customer buys a $50 gift card, you have $50 in the bank, but you haven’t earned it yet. You owe $50 of goods or services. Accountants record that as a liability.

What to track

• Total outstanding balance. The sum of all unspent card value.
• Sales vs redemptions by month. Shows seasonality and how fast cards come back.
• Aging. How long balances have been sitting unused, for example 0–12 months, 1–3 years, 3+ years.
• Breakage. The portion of value that is never redeemed. Accounting standards set rules for when and how breakage can be recognized as revenue, so ask your accountant before you count it as income.

Most POS gift card systems include a liability or outstanding balance report. Export it monthly and reconcile it with your bookkeeping. Our guide to choosing small business accounting software covers tools that make this easier.

Unclaimed property laws

Some states treat long-unused gift card balances as unclaimed property that must be reported to the state, while others exempt gift cards fully or partly. Rules depend on the state, the type of card and sometimes the card value. Ask your accountant or your state’s unclaimed property office how your cards are treated. This is not legal or tax advice.

Prevent gift card fraud

Online gift cards attract fraudsters because they can be bought with stolen cards and resold quickly. Protect yourself:

• Turn on fraud screening in your payment processor and require the card security code.
• Watch for patterns. Many large purchases from the same email, odd hours, or mismatched billing and delivery names are red flags.
• Set a maximum amount per card and per order.
• Never sell gift cards as payment for “fees” over the phone. Scammers often ask victims to buy gift cards; train staff to notice when an older customer seems pressured.

Our guide to spotting fraudulent online orders covers more warning signs.

Promote gift cards year-round

Gift cards peak in November and December, but you can sell them all year:

• Gifting holidays. Mother’s Day, Father’s Day, Valentine’s Day, graduation and teacher appreciation.
• Bonus offers. “Buy $100, get a $20 bonus card,” with the bonus labeled as promotional and given an expiration date.
• Corporate sales. Offer bulk eGift cards to local companies for employee rewards.
• Pair with loyalty. Let members earn bonus points on gift card purchases. See our guide to starting a customer loyalty program.
• Text reminders. Send a “last-minute gift” text a few days before a holiday. Our guide to SMS marketing explains consent rules.

Conclusion

Selling gift cards online is one of the quickest wins for a local business: turn on eGift cards in your POS or online store, link them everywhere, and test the full purchase-to-redemption cycle. Keep the policy simple with no expiration and no fees, follow your state’s cash-back rules, and review your outstanding balance report every month. Do that, and gift cards become steady prepaid revenue rather than a bookkeeping headache.

Sources

• Consumer Financial Protection Bureau: Regulation E, 12 CFR 1005.20 (gift cards) — 5-year expiration minimum, inactivity fee limits, disclosures and exclusions
• California Legislative Information: SB 22 (2025–2026) — $15 cash-back threshold operative April 1, 2026, and electronic gift cards
• Square: Gift cards — eGift card setup, load and processing fees, and balance reporting
• Shopify Help Center: Gift cards — enabling and selling gift card products