HomeAbout GRIProducts & ServicesCareersConsultant LoginContact Us
Gift Cards vs Gift Certificates

12 Reasons For Offering
Gift Cards Rather Than Gift Certificates

Gift Cards are the gift of choice by merchants and consumers alike.  In 2007 gift cards outsold gift certificates by more than 10 to one.  The reasons for this trend are many including:

  On average merchants realized a 15% - 46% increase in sales after they
    switched from paper gift certificates to gift cards.

  The full cash value remains with the store there is no need to give cash
if a customer's purchase is less than the gift card amount.  
    Remaining balances encourage customers to return to your business to
    make an additional purchase.  If the card 
holder does not make another
    purchase, the un-used balance is free income to our business (referred to
    as breakage).  In comparison, stores using paper gift certificates tend to
    refund the balance to customers when used for purchases.
  Gift cards can be prominently displayed within your business as they contain no value until activated.  This option is
   not available with gift certificates

  Gift cards are less time consuming to process than gift certificates. 

  Gift cards are easy to carry and use, how many people do you know who carry paper gift certificates in their wallets? 

  Gift cards offer better reporting options whereas paper gift certificates can be both difficult and time consuming to track.

  Gift cards have a higher perceived value compared to that of gift certificates.

  Compared to paper gift certificates gift cards are less time consuming to process.

  Gift cards are more secure and eliminate the risk of fraud, duplication would be complex.  Paper gift certificates are easiler to

  Gift cards can be recharged and re-used over and over again.  Paper gift certificates are single use only.

  Gift cards typically cost less than paper gift certificates.

  Gift cards provide real-time tracking and reporting.  You can track usage, redemption, balances, marketing, return on investment,
    etc.  Try doing that with paper gift certificates.