How do gift cards work ? - Navidor Payment Solutions (2024)

How Does a Gift Card Work?

Gift Cards are sold to customers for their own use or can be given to family or friends. Cards can be redeemed at store locations just like a credit card and balances can be debited from the card upon purchase.

Cards are swiped through traditional credit card terminals and POS systems and payments are collected by the merchant at the time of sale.

Electronic Gift Card (EGC)

The Electronic Gift Card (EGC) program offers merchants the flexibility of launching a standard gift card system within a single or multi-location environment. Cards can be issued to consumers for any dollar amount the customer chooses. All transactions are processed real time and balances are added and debited from the cards using a credit card terminal, POS system, web based virtual terminal or wireless terminal.

The EGC program was designed specifically for retailers and offers many time saving features to minimize steps and speed up point of sale transactions. Processing transactions using this system is easy for merchants and their employees.

Issuing a Gift Card

1. Customer requests card denomination amount and merchant collects payment from customer upfront.
2. Merchant selects program on terminal or POS system, inputs clerk ID, and swipes the card through the terminal.
3. Merchant keys in dollar amount for the card and the terminal processes the transaction to add that amount to the card.
4. Receipt is printed showing the balance on the card and the card is handed to customer.
5. Transaction is complete.

Redeeming a gift card

1. Customer presents the gift card as form of payment for goods or services.
2. Merchant selects program on terminal or POS system.
3. Merchant inputs clerk ID and swipes the card through the terminal.
4. Merchant keys in dollar amount to redeem off the card.
5. The terminal processes transaction and the amount is subtracted from balance on the card.
6. Receipt is printed to show customer the balance on the card and the card is handed back to customer.
7. Transaction is complete.