What is a gift card and how does it work?

A gift card is a voucher that can be used to purchase goods or services at a specific retailer or group of retailers. It’s typically purchased as a gift for someone else, who can then use the card to make purchases at the designated stores or online. Gift cards can be for a specific amount or for a specific product or service, and they can be physical or digital in format. In essence, a gift card is a form of stored value that can be redeemed for goods or services at a later time. Point of Sale Pro records the sale of a gift card or payment with a gift card so that your reports remain accurate. 

Note: The gift card feature on your POS Pro system only allows you to record the sale of a gift card and use of gift cards at the time of the payment. POS Pro does not create digital or physical gift cards which you can issue to your customers.

There are two types of gift cards you can record in your POS system: 

  • Single-purpose gift card

    : A gift card dedicated to a specific product or service/category with dedicated VAT (VAT is collected at the time gift card purchase) 

  • Multi-purpose gift card

    : A general gift card that is not specific to one product or service/category (VAT is not indicated at the time of the gift card purchase)

To determine what type of gift card is best suitable for your business, we advise you to turn to your accountant. 

How can I activate a gift card?

Choose the type of gift card for your store (multi or single purpose gift card),  depending on the type of gift cards offered in your establishment.

To activate either gift card feature, go to Back office > Settings > Modules > Store settings > Gift cards. When activating the module, a multi-purpose gift card is activated by default. If you’d like to switch to single-purpose gift card, go to the configuration of the module > check Single-purpose gift card.

Can I change between the type of the gift cards (Single/multi purpose gift card)?

The change of the gift cards used at your store can have an impact on your accounting and taxation. To understand the impact of the switch between the gift cards you are offering at your store, we advise you to consult with your accountant. 

Selling gift cards

To add a gift card to an order, simply:

  • Click on the order drop-down menu

  • Click on Create gift card

  • Enter the gift card amount

  • Select the VAT (for single-purpose gift cards only)

  • Enter the gift card's unique code

  • Validate by clicking on Add gift card to basket

  • The gift card is now added to the order basket. Any payment method can be used to purchase.

Conditions

  • Gift cards can be sold with other products

  • The gift card amount is mandatory (the maximum amount for a gift card is €1,000)

  • The unique code is mandatory (this code will be used as a reference to understand the sale and usage of the gift card and serves as a record for fiscal audits)

Note: Multi-purpose gift card

VAT is not collected at the time of the sale, but a VAT rate of 0% will still be shown on receipt.

Redeeming gift cards

If a customer wishes to use their gift card, you can process it by:

  • Going to the payment page

  • Clicking on the Gift card button to the left of the discount button

  • Entering the amount the customer wishes to spend on the gift card

  • Enter unique gift card code

  • Enter the VAT (single purpose gift cards match the same VAT as at the time of the gift card purchase)

  • Apply gift card to order

The use of the gift card reduces the amount to be paid for the entire order automatically.

Conditions

  • Gift cards can be combined with other payment methods

  • The gift card amount is mandatory (the amount applied cannot be higher than the amount to be paid on the order)

  • The unique code is mandatory (this code will be used as a reference to understand the sale and usage of the gift card and serves as a record for fiscal audits)

Note: Multi-purpose gift card

As no VAT was collected at the time of sale, VAT must be collected at the time of use.

Keeping track of gift cards

No data about the lifecycle of a specific gift card is stored in your POS system. The only information recorded is the card code at the time of sale and use. To keep track of gift cards, you can use a separate tool (eg. Excel sheet) in which you can record all gift card information and carry out verifications. You are able to record sale and use of any gift card in your POS Pro - the revenue on the other hand needs to be recognized at the right time in your accounting system. To understand the revenue and taxation coming from gift cards, we advice you to consult with your accountant. 

To see how many gift cards were sold or redeemed over a selected period of time, you can view that in Back office > Reports > Product sales.

If you need any precise information about a specific gift card that was registered in your POS, go to Orders Report > Export. You’ll be able to identify the gift card based on the reference code.

What happens if the wrong gift card code is used for a transaction?

If there is an entry error when registering a gift card,  this could affect tax filing. In the event of an error, you can note the error on the gift card so that, in the event of an audit, you can inform the tax authorities of the reasons for said error.

Refunding a used gift card

As the gift card is considered a ‘negative product’ (discount) on the total amount to be paid and not a means of payment, it is not possible to refund a used gift card.