Accepting gift cards: 5 things you need to know

Gift cards have become a cornerstone of modern commerce, offering unparalleled convenience and flexibility for both merchants and consumers. However, navigating the complexities of their processing can be daunting for merchants. Some reports suggest global gift cards are projected to reach $506 billion by 2025, highlighting the widespread adoption of this payment method.

Here are five key insights you need to know:

• Split-Tender Transactions: Gift card processing often occurs with a complementary payment method. When multiple payment methods, including gift cards and traditional payment methods, are used to fund a single transaction, often one of them fails, and that requires a manual process from the merchant to revert any completed parts of the transaction. Orchestrators, like Gr4vy help simplify this offering that buyers love so much.
• Integration Challenges: Integrating with gift card providers can be complex and time-consuming. According to a survey by the National Retail Federation, 62% of merchants report that their false decline rates are increasing, underscoring the need for streamlined integration options.
• Enhanced Security Measures: Gift card transactions require robust security measures to prevent fraud and unauthorized use. According to a study by LexisNexis Risk Solutions, global merchants reported an estimated 32% increase in fraud attempts in 2020. Merchants should leverage payment orchestration platforms with built-in anti-fraud services to safeguard against potential threats and keep playing by the rules.
• Unified Reporting and Management: Managing gift card transactions alongside other payment methods can be challenging. According to a survey by McKinsey, 89% of merchants struggle with data and analytics capabilities, which is why they often choose payment orchestration platforms with unified reporting and management tools to track and reconcile gift card transactions effectively.
• Future-Proof Solutions: As the payment landscape evolves, merchants must adapt to changing consumer preferences and industry trends. According to a report by Deloitte, 79% of consumers purchased a gift card in the past year.

By understanding these five key insights, supported by global statistics, merchants can effectively leverage the power of gift cards to drive growth, enhance customer experiences, and stay ahead of the competition in today’s dynamic marketplace.

If you’re ready to explore how a Gr4vy, as a payment orchestrator can support your payment strategy and future-proof your checkout, get in touch with our team for a full consultation with one of our experts.