Merchants use in-store displays to merchandise gift
cards as an impulse buy near the POS register. A
customer purchases the card with cash, a check or
a credit card for any dollar amount. The amount purchased
is recorded as "stored value" or "prepaid" in
the host database.
The cardholder presents the gift card for full or partial
payment of a purchase. The merchant swipes the card
The cardholder can purchase additional value or reload
the card for any amount in person, by phone, or
both, depending on the system you choose. The merchant
can choose to encourage use with incentives like
loading $60 in value for the price of $50.
The card system operates to activate cards, and process
sales, voids, and balance inquires from your credit card terminal or point
of sale (POS) system. The printer produces a paper
receipt for each transaction.