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5 comments

  • Curt Campbell

    We do use gift cards on our Shopify store but I am hesitant.  There is going to be a great washout of small businesses in the coming months and I cannot help but think some folks will never be able to redeem their gift cards.  It's kind of like the rule of thumb for gambling - never bet more than you can afford to lose.  I'd love to hear other voices on this subject.

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  • Cheri Phillips

    Our local shops and restaurants have been pushing gifts cards as a way to generate some revenue now and hopefully get those customers into their businesses later. If I've understood correctly, when someone buys a gift card from our Shopify shops, however, we don't get the revenue until they redeem them. Is that correct? If so, although I've added gift cards to my shop, I don't think they will help me very much.

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  • Curt Campbell

    Cheri you bring up a good point about Shopify releasing funds for gift cards.  I'll look into this!

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  • Jake Wood

    Do Shopify control that release of funds or is it your responsibility? I've been told to be wary of gift cards and the legalities of spending those funds.

     

    J

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  • Curt Campbell

    Ok this is what I learned about Shopify gift cards this past week.  We sold a $100 gift card and the funds were released to us with all of the other transactions. So you get the money in a matter of days.

    This creates a liability for your shop.  You have the money for a future purchase and your State may require you to keep those funds on hand and earmarked for the future purchase. Each State is different so it would be wise to check on your States requirements.

    Shopify tracks the gift card liability for you which should meet your obligation to record outstanding gift cards.

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