Expiration Dates and Inactivity Fees

Expiration dates on gift cards? Good luck spotting them. They’re not always illegal, but it depends on your state. California bans expiration dates, but most places just stick to the federal five-year rule. Sometimes, the “valid until” is printed so tiny you need a magnifying glass. It’s like they’re daring you to miss it.

And inactivity fees—yeah, those kick in after a year of nothing, even if there’s no expiration date. The FTC says all fees and terms have to be “clearly stated,” but who’s flipping over the card to read that? My uncle lost a $15 Chili’s card because he didn’t bother. Classic.

Missouri? They allow expiration if it’s disclosed, but only after five years. New York and Delaware? No expiration or huge fees allowed. Retailers get creative with “administrative” language to sneak around the rules. I swear, my gift card drawer just grows while the balances magically shrink.

Marketing Strategies Behind Gift Card Promotions

Retailers keep acting like gift cards are just innocent little stocking stuffers, but come on—they’re cash flow machines. I see people miss this all the time. Gift cards mean upfront revenue, no actual product leaves the store, and the business gets a free loan. People still fall for it, even with all the obvious “bonus with purchase” hooks.

How Gift Cards Boost Sales

Ever stood in line at Target and wondered if anyone does the math? Every $50 card scanned is instant cash for the store, nothing leaves the shelf. FTx POS says this lets businesses cover payroll or pay suppliers before they’ve even sold a single blender. It’s wild.

And “uplift”—don’t even get me started. People almost always spend more than the card’s value. Advanced Coupons and Klaviyo say average transaction value jumps 15-20%. I see it every holiday. No one’s making you spend extra, but between basic human nature and those “bonus” deals, you’ll go over. Meanwhile, I keep finding old Starbucks cards in drawers—never used, just free money for Starbucks. It’s honestly genius. Maddening, but genius.

Leveraging Flexibility in Offers

Scrolling through emails after work, I keep seeing those “buy $50, get $10” deals. Who actually resists? Klaviyo and FTx POS both say these promos spike conversions. That $10 bonus costs stores less than a normal discount and guarantees you’ll come back. They roll these out for every occasion—holidays, birthdays, random Tuesdays.

Retailers go all-in: social media blitzes, one-day flash sales, influencer “gift guides” (I once saw a chef shilling panini press gift cards—no, I didn’t buy). E-cards for last-minute shoppers, plastic for the traditionalists. They’ll adapt to anything. I keep telling myself I won’t fall for the next promo, but, yeah, I do.

Increased Foot Traffic and Customer Loyalty

Nobody warns you how nuts the holidays get in retail. Suddenly, gift cards are everywhere—people treat them like golden tickets. If you’ve never watched shoppers swarm an endcap for a Starbucks card taped to some random chocolate box, you’re missing out.

Driving Foot Traffic With Holiday Gift Cards

Every year, right before Thanksgiving or on the last weekend before Christmas, I see parents lined up, frantically hunting for brand-specific gift cards. There’s this weird panic—people come in “just for gift cards,” but walk out with armloads of random stuff. Forbes says stores with gift card promos during the holidays get sales bumps up to 38%. I believe it.

I doubt anyone ever redeems just the card’s value. IT Retail says 65% of people spend more than their card balance, sometimes by 38%. So if you picture “foot traffic” as college kids in pajamas buying last-minute gifts, or your uncle grabbing a grocery card and leaving with a magazine too, that’s exactly it.

Connecting Gift Cards to Loyalty Programs

Tying gift card sales to loyalty programs? Why isn’t everyone doing this? I see promos offering extra points for buying a $50 gift card, and suddenly people who never cared about rewards are signing up. I read a study last December—shoppers who got a $25 card with a $100 purchase kept coming back for weeks. That’s real loyalty.

But tracking who used what is a mess unless the tech is solid. POS integrations changed the game; now I get alerts when someone comes back for a “bonus spend.” Loyalty programs plus gift cards = forced repeat visits. Unless, of course, you lose the card in your glovebox for three months (I’ve done it). Still, if you want to boost retention, this is your move.