Gift Certificates

What is a gift certificate?

A gift certificate is a plastic, electronic, or scratch card with a denomination equivalent to a currency; a prepaid payment for future purchases of goods.

Types of gift certificates

Money certificate. The classic option: this type of certificate is ideal for gifts. The customer buys the certificate at full value as a gift. Typically, discounts do not apply to this type of certificate.

Discount certificate. A customer buys goods or services in your store, and the seller gives a discount certificate for future purchases. A great solution for upselling and motivating customers to return to your store.

Invitation certificate. A way to spread the word about your store through loyal customers. When purchasing goods, give your customers a real discount, and in addition, a certificate for a discount for the customer's friend.

Why are gift certificates needed for a store?

If a shopper takes a long time deciding on a gift, it is likely that they are afraid of making a mistake in the tastes, preferences, or hidden desires of the person the gift is intended for.

The essence of a gift is to bring joy and utility. Offer the customer a store certificate, which gives 100% confidence that the gift recipient can choose exactly what they need.

8 tasks solved by gift certificates in a store

Gift certificates:

• Solve the problem of choice and save time for shoppers when they cannot decide.
• Give the certificate holder the freedom to choose.
• Retain, return, and attract new customers.
• Easy to buy — the customer pays only the nominal value of the certificate.
• They easily solve the task of universal prizes for promotional and marketing campaigns.
• They act as an interest-free loan, which buyers give to the store — the certificate is sold, the money is received, and the product is still in stock, increasing the business's working capital.
• They are time-limited and often not fully redeemed — the money paid for the certificate remains in the company's turnover.
• Can be used as compensation for unmet expectations, poor service, or defective products.

How to keep records of gift certificates in the software?

The Torgsoft accounting software keeps track of all business processes related to the sale and use of gift certificates.

After activating the additional option, work with certificates is done in the Torgsoft → Marketing → Gift Certificates mode:

• creating batches of certificates with unique barcodes,
• selling and accounting for gift certificates,
• redeeming certificates for goods,
• reissuing certificates,
• viewing usage history; controlling paid but unused certificates,
• evaluating the effectiveness of promotional campaigns,
• preventing fraud.

Three types of gift certificates in Torgsoft:

Money certificate: when paying with this certificate, the amount payable will automatically be reduced by the certificate amount.

Discount certificate: when using this certificate, a percentage discount is applied to the product based on the certificate amount.

Product certificate: full accounting of gift certificates, their availability, and distribution between stores in the retail network.

You can use one type or all three as desired. Each type has its pros and cons. For example, a product certificate cannot be reissued and cannot be used in Trade with invoice, while for discount and money certificates, the program does not keep track of balances by accounting centers.

You can set a validity period in days for any type of certificate to encourage customers to make a purchase.

The cost and nominal value of the certificate may differ. It is also possible to limit the list of stores where purchases can be paid with a gift certificate.

How to sell a product with a gift certificate?

When paying for a product with a gift certificate, the seller scans the certificate's barcode with a scanner.

The Torgsoft software keeps track of which certificates were issued, sold, and used — this provides additional protection against fraud by sellers or buyers, as it is impossible to pay with an unsold or already used certificate.

Used plastic certificates do not necessarily have to be discarded — they can be reissued in the software and resold.

Conditions for using a gift certificate

For the buyer:

• No discount applies when purchasing the certificate.
• The nominal value of the gift certificate can be credited to the customer's accumulation.
• It is profitable to buy gift certificates in your store and bring in other customers, as by giving gifts to others, the customer earns as well — every purchase brings the customer closer to the next discount threshold.

For the presenter:

• Discounts from the loyalty card apply when redeeming the certificate for cash, as well as promotional and product discounts, and birthday discounts.
• The nominal value of the certificate is not added to the customer's accumulation card.
• If the selected product's price exceeds the certificate's nominal value, the customer can pay the difference in cash.
• If the price of the selected products is lower than the certificate's nominal value, the remaining amount on the certificate "expires". Typically, people are reluctant to lose money, which leads to additional purchases.

Gift certificate template: what information to include?

Plastic gift certificate

The gift certificate resembles a discount or bonus card in appearance.

Most often, certificates are made of plastic — they are more durable, look presentable, and retain a neat appearance for longer. In addition, plastic gift certificates are harder to counterfeit compared to paper ones.

Besides the usual look of a certificate — a plastic card, you can print the certificate's barcode on a label and stick it on a postcard, booklet, gift insert, coupon, or promotional surprise item.

Typically, the following information is printed on gift certificates: the denomination, purpose of the certificate, store name and address, expiration date, barcode.

In Torgsoft → Marketing → Gift Certificates, you can immediately print the certificate, and its appearance can be customized.

Electronic gift certificate

An electronic gift certificate is a convenient type of certificate for online stores.

Advantages of the electronic certificate:

• Your customers can buy a gift online — for those who are far away and cannot congratulate someone in person.
• An electronic certificate is more convenient: the promo code is sent directly to the recipient. The buyer can place an order on the website, provide their own phone number or the phone number of the person receiving the certificate. After successful payment of the order, the online store manager sends the certificate code to the specified phone number.
• An electronic certificate is more eco-friendly than a plastic counterpart.
• Selling online allows you to build a customer database for mass mailings.

How to sell and accept payment for gift certificates using ECR?

Any cash or non-cash transaction — payment cards, checks, tokens, and gift certificates in the retail, foodservice, and service sectors must be processed through a fiscal registrar or pECR, according to the Law of Ukraine "On the Use of Electronic Cash Registers in Trade, Catering, and Services" dated 06.07.1995 No. 265/95-VR.

Selling gift certificates through a fiscal registrar

When issuing gift certificates as "Goods", a system item "Gift Certificate" is created.

To sell gift certificates through the fiscal registrar, go to the item type and check the "Fiscal" box.

• How to make a gift certificate a fiscal item

The customer can purchase a gift certificate using cash or non-cash payment.

The seller must issue a fiscal receipt with the name, quantity, and price of the sold gift certificates.

Paying with a gift certificate for a fiscal item

The tax authority on the "ZIR" resource explained that when paying for a product using a gift certificate, the transaction is processed through the ECR with the payment form marked as "non-cash". For excisable goods, the UKT ZED subcategory code must also be indicated.

At the same time, the entrepreneur can specify the payment type as "gift certificate".

In the Torgsoft accounting software, the pECR fiscal receipt includes the information "Paid with gift certificates", which shows the amount of gift certificates used for payment.

If the total purchase amount exceeds the value of the gift certificate, the receipt will show several payment forms: "cash and/or non-cash" and the amounts for each payment form.

For example, if a customer buys a product for 500 UAH, pays part of it with a certificate worth 200 UAH, and the difference with 300 UAH in cash, the fiscal receipt will show two payment forms — "Gift Certificate" and "Cash", and the amounts for each payment form.

Gift certificate validity period

In Torgsoft, the validity period can be set to any length. The most common validity period is 6 months.

Which stores use gift certificates?

Gift certificates work in any type of business — there are no limitations.