Gift Cards and Discount Codes
On credit card portals, we can create gift cards and discount codes. While there are functional differences between these features, both can be used as an incentive for purchasing or to reward employees. You can track the redemptions via reporting.
These are virtual gift cards that can be used multiple times and they will maintain a balance. These are great for employee stores for reasons like anniversaries, birthdays, births, etc.
- The interface in our system is like discount codes, but it is different because it is considered a form of payment.
- Kotis can create the unique gift card codes or the client can supply that if you want us to follow a certain naming convention
- An expiration date can be tied to the code
- Like other forms of payment (i.e. credit card), it is applied after tax.
- It maintains a balance and can be used multiple times until it gets to 0.
- If the value of the gift card does not cover the entire order, it will prompt the user to put in credit card info.
- There may be questions of when you should create a discount code vs a gift card. If you want it to have the functionality it can maintain a balance and be used repeatedly, gift cards are your best option.
- There are some tax ramifications of each, here’s how a $50 discount or gift card will appear at checkout:
- Discount code: $50 items - $50 discount = $0 subtotal + $0 tax = $0 paid
- Gift card: $50 items + $4.80 tax = $54.80 total - $50 gift card = $4.80 paid
- Remaining gift code amount will be shown at checkout, as well as the amount used towards the current order.
- If the gift card doesn't cover order cost, customer will enter their credit card info.
These codes have a one-time use and can be issued either as a percentage off an order, dollar amount off an order or enable free shipping. We cannot do both free shipping and a percentage or dollar amount off, it’s either one or the other.
- Kotis can create the unique codes or the client can supply that if you want us to follow a certain naming convention
- An expiration date can be tied to a code
- 1 code can either have unlimited uses (for instance, issuing a discount code for free shipping to be used by multiple ppl.) OR, we can set a number of uses for 1 code if you want to restrict use.
- Discount codes are one time use
How to track redemptions
Using the Sales Report > Item Level Detail, you can see orders that have used a discount code or gift card. It will also show the order discount applied to tally the total discount amount.
SALES vs. GIFT CARDS
Portal sales are net of any refunds, gift cards, or discounts
- When sales are less than the total amount of gift cards redeemed, the difference will be added to your quarterly invoice as a balance due.
- Example: The total of gift cards redeemed is $23,775.65 but the actual sales were $21,832.27. The amount owing is $1,943.38 ($23,775.65-$21,832.27).
- Why?: More gift cards were redeemed on the portal than actual sales